MIRA INFORM REPORT

Report No. :	349300
Report Date :	24.11.2015

IDENTIFICATION DETAILS

Name :	ITC ESSENTRA LIMITED (w.e.f. 20.11.2013)

Formerly Known As :	ITC FILTRONA LIMITED ITC FILTRONA PRIVATE LIMITED

Registered Office :	Survey No.29 and 30, Doddajala Postyarthiganahalli, Bettahalasur Post, Bangalore North – 562157, Karnataka
Tel. No.:	91-80-22174700

Country :	India

Financials (as on) :	31.12.2014

Date of Incorporation :	04.05.1993

Com. Reg. No.:	08-014278

Capital Investment / Paid-up Capital :	Rs.45.000 Million

CIN No.: [Company Identification No.]	U85110KA1993PLC014278

IEC No.:	0793013437

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AAACI5640P

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer, Exporter and Importer of acetate filter roads.

No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (76)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2100000

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	ITC Essentra Limited is 50:50 joint venture between "Gold Flake Corporation Limited (wholly owned subsidiary of ITC Limited' and "Essentra Filter Products International Limited, U.K". It is an old and established company incorporated in the year 1993 having fine track record. It is engaged in manufacturing, exporting and importing of acetate filter rods. The company possesses strong financial position with decent profit margins, healthy net worth base, strong debt protection indicators and favourable liquidity profile of the company. Further, rating is partially offset by risks relating to government rules and regulatory changes in the tobacco industry. Trade relations are decent. Payments are reported to be regular and as per the commitments. In view of aforesaid, subject can be considered good for normal 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.

HENKEL RATING

HENKEL’s Rating :

200, 201 (Low risk)

Credit Rating	Henkel Rating (Customer Risk Assesment- CRA)
Mira Inform	Risk Category	Credit Limit	Description
Aaa	100	Inter Company, credit limit not required	Very low risk (blue ships)
Aa	200, 201	(120% of Gross Annualised Sales/365)*Credit Term.	Low risk
A	300, 301	(100% of Gross Annualised Sales/365)*Credit Term.	Moderate risk
Ba	350	(90% of Gross Annualised Sales/365)*Credit Term.	Significant risk
B	400	(80% of Gross Annualised Sales/365)*Credit Term.	High risk
B	450	(80% of Gross Annualised Sales/365)*Credit Term.	Very high risk
Ca or C	500*	NIL/ Legal/ Bad/No Transaction	Doubtful accounts
	007*	NIL	Small unrated customers
	009*	NIL	Inactive customers
	999*	Initially First Invoice vales, CRA will be done and based on report the CL would get revised.	New customer

ECGC Country Risk Classification List – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Rajendra Prasad
Designation :	Deputy Manager Commercial
Contact No.:	91-80-45453676
Date :	17.11.2015

LOCATIONS

Registered Office :	Survey No.29 and 30, Doddajala Postyarthiganahalli, Bettahalasur Post, Bangalore North – 562157, Karnataka, India
Tel. No.:	91-80-22174700/45453676
Fax No.:	91-80-45453618
E-Mail :	sales@essentracomponets.co.in itcessentra@essentra.com rajendraprasad@essentra.com
Website :	www.itcportal.com
Location:	Owned
Locality:	Industrial

Factory 1 :	Survey No.139 and 140, Veerapura Village,Kasaba Hobli, Industrial Area, Bangalore -561203, Karnataka, India

Factory 2 :	No.17, Jawahar Co-Operative Industrial Estate, Kamothe, Navi Mumbai -410209, Maharashtra, India

DIRECTORS

AS ON 31.12.2015

Name :

Mr. Prem Pal Singh

Designation :

Director

Address :

#111, Lake Shore Homes, Kasavanahalli, Off Sarjapur Road, Bangalore, 560035, Karnataka, India

Date of Appointment :

26.03.2015

DIN No.:

07125363

Name :

Mr. Nandini Sinha Batra

Designation :

Director

Address :

Flat C202, Itc Garden Enclave, Jakkur Plantation Village, Yellahanka,, Bangalore - 560064, Karnataka, India

Date of Appointment :

26.03.2015

DIN No.:

06966935

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	U74900KA2015PTC078097	SoStakes Services Private Limited	Director	5/1/2015	5/1/2015	-	Active	NO
2	U85110KA1993PLC014278	ITC ESSENTRA LIMITED	Director	26/03/2015	26/03/2015	-	Active	NO

Name :

Mr. Hemant Malik

Designation :

Director

Address :

Arjun Enclave, Flat No.3B, 12C, Judges Court Road, P.S. Alipore, Kolkata - 700027, West Bengal, India

Date of Birth/Age :

01.04.1966

Qualification:

BA,MBA

Date of Appointment :

28.03.2014

DIN No.:

06435812

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	U24999MH1948NPL006309	AUDIT BUREAU OF CIRCULATIONS	Director	7/12/2012	7/12/2012	-	Active	NO
2	U85110KA1993PLC014278	ITC ESSENTRA LIMITED	Director	28/03/2014	18/12/2012	-	Active	NO
3	U16000TZ1973PLC018100	ATC LIMITED	Director	24/09/2015	28/08/2015	-	Active	NO

Name :

Mr. Martin James Dudley

Designation :

Director

Address :

99 Robertson Quay, # 34-16, Singapore, 238258, Singapore

Date of Birth/Age :

20.04.1961

Qualification:

B.Sc (Hons)

Date of Appointment :

29.06.2012

DIN No.:

03579599

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	U85110KA1993PLC014278	ITC ESSENTRA LIMITED	Director	29/06/2012	29/09/2011	-	Active	NO

Name :

Mr. Michael Myriam Pio Raymond Roosen

Designation :

Director

Address :

64 Duchess Avenue, 04-04 Duchess Crest, Singapore, 269203, Singapore

Date of Birth/Age :

29.11.1977

Qualification:

Master degree in Finance and Strategy

Date of Appointment :

25.06.2014

DIN No.:

06649074

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	U85110KA1993PLC014278	ITC ESSENTRA LIMITED	Director	25/06/2014	23/09/2013	-	Active	NO
2	U25209KA1999PTC025886	Essentra (India) Private Limited	Director	25/06/2014	24/04/2014	-	Active	NO

Name :

Sumitro Guha

Designation :

Director

Address :

Woodlands Syndicate, Flat No. 8, 8/7 Alipore Road, Kolkata - 700027, West Bengal, India

Date of Birth/Age :

05.07.1961

Qualification:

B.E

Date of Appointment :

25.06.2014

DIN No.:

05352564

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	U16000TZ1973PLC018100	ATC LIMITED	Director	27/09/2012	16/08/2012	-	Active	NO
2	U85110KA1993PLC014278	ITC ESSENTRA LIMITED	Director	25/06/2014	28/03/2014	-	Active	NO

Name :

Colin Richard Day

Designation :

Alternate director

Address :

The Beeches, 17, Stratton Road, Beaconsfield Bucks, Bucks, HP91HR, United Kingdom

Date of Birth/Age :

21.03.1955

Qualification:

ACCA, MBA

Date of Appointment :

12.12.2013

DIN No.:

00319884

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	U74999DL1951PTC127062	RECKITT BENCKISER (INDIA) Private Limited	Director	24/03/2001	24/03/2001	8/2/2011	Active	NO
2	U85110KA1993PLC014278	ITC ESSENTRA LIMITED	Alternate director	12/12/2013	13/03/2012	-	Active	NO

Name :

Mr. Sreekumar Puthen Thermedam

Designation :

Nominee director

Address :

2 Tadmere, Two Mile Ash, Milton Keynes, MK88DG, United Kingdom

Qualification:

B.Sc Engg. PGDBM,MIE, MIIIE

Date of Appointment :

12.09.2002

DIN No.:

00492211

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	U25209KA1999PTC025886	Essentra (India) Private Limited	Director	25/06/2014	29/10/1999	-	Active	NO
2	U85110KA1993PLC014278	ITC ESSENTRA LIMITED	Nominee director	12/9/2002	12/9/2002	-	Active	NO
3	U24230TG1957PTC000769	BIO-PHARMA LABORATORIES PRIVATE LIMITED	Director	30/09/2014	24/07/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rajendra Prasad
Designation :	Deputy Manager Commercial

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.06.2014

Names of Shareholders		No. of Shares
Gold Flake Corporation Limited, India		2249997
Essentra Filter Products International Limited, United Kingdom		2249997
Gold Flake Corporation Limited, India jointly with Rajiv Tandon		1
Essentra Filter Products International Limited, United Kingdom jointly with Essentra International Limited		2
Gold Flake Corporation Limited, India jointly with T V Ramaswamy		1
Gold Flake Corporation Limited, India jointly with Jagdish Singh		1
Essentra Filter Products International Limited, United Kingdom jointly with Essentra International Limited		1
Total		4500000

Equity Share Break up (Percentage of Total Equity)

AS ON 25.06.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of acetate filter roads.

Products :

Item Code No.	Product Description
56012200	Cigarette Filter Rods

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Finished Goods

Countries :

Indonesia
Dubai

Imports :

Products :

Raw Material

Countries :

USA
Germany
Japan
China

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

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 :

Wholesalers, Retailers and End users

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 :

150 (Approximately)

Bankers :

The Hongkong and Shanghai Banking Corporation Limited, No. 7, Mahatma Gandhi Road, Bangalore - 560001, Karnataka, India
ING Vysya Bank Limited, 22,Ground Floor, ING Vysya House, M.G. Road,, Bangalore - 560001, Karnataka, India

Banker Name	Kotak Mahindra Bank
Branch Address	22,Ground Floor, ING Vysya House, M.G. Road,, Bangalore - 560001, Karnataka, 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 31.12.2014	As on 31.12.2013
SHORT TERM BORROWING
Loans repayable on demand	208.805	57.811
Total	208.805	57.811

Auditors :
Name :	A F Ferguson And Company Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2,Richmond Road, Bangalore - 560 025, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AACFD3771D

Memberships :	Not Available

Collaborators :	Not Available

Joint venture:	ITC Limited, India [L16005WB1910PLC001985] PT. Essentra Indonesia, Indonesia Essentra Filter Products Limited, Thailand Essentra International Limited, United Kingdom Essentra Fze, United Arab Emirates Essentra Limited Italia, Italy

CAPITAL STRUCTURE

AS ON 31.12.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

4500000	Equity Shares	Rs.10/- each	Rs. 45.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

FINANCIAL DETAILS ATTACHED

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.12.2014	31.12.2013	31.12.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	(51.419)	308.984	246.101

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.12.2012	31.12.2013	31.12.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	45.000	45.000	45.000
Reserves & Surplus	519.554	609.550	682.994
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	564.554	654.550	727.994

long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	57.811	208.805
Total borrowings	0.000	57.811	208.805
Debt/Equity ratio	0.000	0.088	0.287

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2012	31.12.2013	31.12.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2068.780	2641.964	2947.777
		27.706	11.575

NET PROFIT MARGIN

Net Profit Margin	31.12.2012	31.12.2013	31.12.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2068.780	2641.964	2947.777
Profit	130.521	137.692	122.188
	6.31%	5.21%	4.15%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	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	Yes
35	Negative Reporting by Auditors in the Annual Report	No

ECONOMIC ENVIRONMENT

Buoyed by an electoral mandate for a majority Government at the Centre for the first time in 30 years, the country is poised for a period of political stability supported by growth-oriented economic reforms. Key indices equity markets, relative stability in the currency, inflation indices, corporate performances etc. indicate that GDP Growth rates are on a firm trend. Implementation of the policy pronouncements will be keenly followed not only by the investor community but also other developing economies as India seeks to emerge as an economic power to reckon with.

COMPANY PERFORMANCE

The Company posted a turnover of Rs.3300.000 Million (previous year Rs. 2940.000 Million). However Pre-tax profits are lower at Rs.183.100 Million in 2014 as against Rs. 205.200 Million in 2013. Earnings per share reduced from Rs.30.60 per share in the previous year to Rs.27.15 per share in the current year.

The Company continues to maintain its leadership position in the industry. This year, the Company was able to increase its domestic market share despite several tariff and non-tariff regulations on the cigarette industry in India. The Company has faced the challenges posed by these difficult market conditions by focusing on basic tenets of customer orientation support in technological innovation, timeliness in execution, consistent delivery and world-class quality. This enabled the Company partly to offset a dip in volume in the high-margin export segment. The Company remains the preferred supply chain partner for well-known national and international brands and supports the growth of exports by providing quality filter rods at competitive prices.

The new state-of-the-art manufacturing site at Doddaballapur, Bengaluru, is fully commissioned and operational from May 2014. In continuation of the philosophy of balancing capital formation to further strengthen its market position and meeting the expectation of the shareholders, the Directors are pleased to recommend a dividend of Rs. 9.00 per share (previous year Rs. 9.00 per share) for the year ended 31st December, 2014. The cash outflow in this regard will be Rs. 48.700 Million (previous year Rs. 47.700 Million) including Dividend Tax of Rs. 8.200 Crores (previous year Rs. 7.200 Million). The Board further recommends a transfer to General Reserve of Rs. 12.300 Million (previous year Rs. 13.800 Million). Consequently, the Board recommends leaving an un-appropriated balance in the Profit and Loss Account of Rs.561.600 Million (previous year Rs. 500.500 Million).

BUSINESS ANALYSIS

Cigarettes yet again suffered steep increases in Excise Duties and State Taxes in 2014. Despite this, the Company was able to increase its share of domestic business by 8% over 2013 and overall revenue by 12%. Besides, the Company continues its support to the growth of exports of cigarettes by Indian cigarette manufactures, by providing quality filter rods at competitive prices.

The Company strives to set new quality benchmark in cigarette filter soffer superior filter solutions and consolidate its position as the most preferred supplier to its customers. The Company continues to leverage systems set up for integrated online quality control.

The pressure on domestic business is likely to continue owing to the unprecedented increase in Excise duties and VAT rates on cigarettes. The Company with its strong focus on product and market development, will continue to provide, value added solutions to its key customers in the forthcoming years.

AMENDMENT TO THE ARTICLES OF ASSOCIATION OF THE COMPANY

In terms of the provision of the Companies Act, 2013 (the Act) and the Rules made thereunder, the Company was required to appoint at least two independent directors, not liable to retire by rotation, and such independent directors, may, inter alia, receive remuneration by way of fee for attending meetings of the Board and Committees thereof.

To facilitate compliance with the requirements of the Act, the Articles of Association of the Company was amended with the approval of the Members at the Extraordinary General Meeting held on 26th March, 2015 to appoint two Independent Directors and authorization to the Board to determine the sitting fees payable to a Director for attending a meeting of the Board or Committee thereof, within the limits prescribed under the Act read alongwith the Rules made thereunder.

CHANGE IN FINANCIAL YEAR

The financial year of the Company commences on 1stJanuary and ends on 31stDecember every year. Pursuant to the provisions of Section2(41) of the Companies Act, 2013, the Company is required to change its financial year, within a period of two years of commencement of the Act, such that it ends on 31stMarch every year.

In order to comply with the above statutory requirement, the Board of Directors at its Meeting held on 26th March, 2015, has approved the change in financial year of the Company from January-December to April-March.

The current financial year of the Company (that commenced on 1stJanuary, 2015) will be extended up to 31st March, 2016 (being a period of 15 months). Subsequently, the financial year of the Company shall commence on 1stApril and end on 31^st March every year.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10516001	16/04/2014	100,000,000.00	HDFC BANK LIMITED	4TH FLOOR, 8/24, SALCO CENTRE, RICHMOND ROAD, BAN GALORE, KARNATAKA - 560025, INDIA	C17346180
2	10476003	16/12/2013	300,000,000.00	ING VYSYA BANK LIMITED	22,GROUND FLOOR,, ING VYSYA HOUSE,M.G.ROAD,, BANG ALORE, KARNATAKA - 560001, INDIA	B95651048
3	80066637	27/06/2013 *	160,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI TED	NO. 7, MAHATMA GANDHI ROAD,, BANGALORE, KARNATAKA - 560001, INDIA	B78938115

* Date of charge modification

FIXED ASSETS

Tangible assets

Land
Buildings
Plant and equipment
Furniture and fixtures
Vehicles
Office equipment
Other equipments

Intangible assets

Brands and trade marks
Trade marks

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.66.35
UK Pound	1	Rs.100.66
Euro	1	Rs.70.47

INFORMATION DETAILS

Information Gathered by :	PRT

Analysis Done by :	HNA

Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILITY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		76

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.