MIRA INFORM REPORT

Report No. :	350173
Report Date :	26.11.2015

IDENTIFICATION DETAILS

Name :	TFL QUINN INDIA PRIVATE LIMITED
Registered Office :	Survey No.313, 315, 316, 325/A and B and 326A, B and C, TFL Estate, Bachupally, Near Miyapur, Hyderabad – 500072, Telangana
Tel. No.:	91-40-23046531
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	02.09.1998
Com. Reg. No.:	36-045836
Capital Investment / Paid-up Capital :	Rs. 102.531 million
CIN No.: [Company Identification No.]	U18209TG1998PTC045836
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	HYDQ00007A CHEQ00011E
PAN No.: [Permanent Account No.]	AAACT7631D
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in manufacture and sale of leather tanning and leather finishing chemicals as well as trading of dyes and leather specialty chemicals for tanning industry.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (57)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2334000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is subsidiary of “TFL Ledertechnik GmbH” Germany. It was incorporated in the year 1998 and is well-established company having fine track record. The rating on company reflects healthy financial risk profile marked by growing scales of operation, decent profitability margin and strong net worth base, negligible debt and strong liquidity. The ratings continue to reflect TFL Quinn’s strong position in the specialty leather chemicals market backed by strong financial and managerial support from its holding company. This rating strength is partially offset by client concentration in the company’s revenue profile, its exposure to intense industry competition, and its working-capital-intensive operations. Trade relations are fair. Business is active. Payment terms are reported to be regular and as per commitment. In view of strong holding support to subject company, it can be considered 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	CRISIL
Rating	Long Term Bank Facilities: A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	21.01.2015

Rating Agency Name	CRISIL
Rating	Short Term Bank Facilities: A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	21.01.2015

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.

LOCATIONS

Registered Office/ Factory :	Survey No.313, 315, 316, 325/A and B and 326A, B and C, TFL Estate, Bachupally, Near Miyapur, Hyderabad – 500072, Telangana, India
Tel. No.:	91-40-23046531
Mobile No.:	91-9701017283 (Mr. Durga Prasad)
Fax No.:	91-40-23046540
E-Mail :	durgaprasad@tfl.com
Website :	http://www.tfl.com

DIRECTORS

AS ON: 30.09.2014

Name :

Mr. Durga Prasad Trikutam

Designation :

Managing Director

Address :

Plot No.128, H.No.20-103, Dayanand Nagar, Malkajgiri, Hyderabad - 500047, Telangana, India

Date of Birth/Age :

01.08.1956

Date of Appointment :

12.03.2004

DIN No.:

00056498

PAN No :

AAMPT0794N

Name :

Mr. Gunther Hurlebaus

Designation :

Director

Address :

Krumme Lange 17, Binzen - 79589, Germany

Date of Birth/Age :

02.02.1966

Date of Appointment :

30.09.2008

DIN No.:

02259794

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	U18209TG1998PTC045836	TFL QUINN INDIA PRIVATE LIMITED	Director	30/09/2008	04/07/2008	-	Active	NO

Name :

Mr. Carlo Francesco Gorini

Designation :

Whole-Time Director

Address :

Via Pablo Picaso, 12, Buacate Mi - 20010, Italy

Date of Birth/Age :

26.01.1956

Date of Appointment :

27.04.2015

DIN No.:

05283651

PAN No :

BENPG1245K

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	U18209TG1998PTC045836	TFL QUINN INDIA PRIVATE LIMITED	Whole-time director	27/04/2015	14/05/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. T N Kannan
Designation :	Secretary
Address :	H.No.44, Environ Enclave, Saibaba Nagar, Kukatpally, Hyderabad - 500072, Telangana, India
Date of Birth/Age :	12.08.1968
Date of Appointment :	16.11.2009
PAN No.:	AGMPK7315C

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
TFL Ledertechnik GmbH, Germany	10253096
TFL Holding GmbH, Germany	17
Total	10253113

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in manufacture and sale of leather tanning and leather finishing chemicals as well as trading of dyes and leather specialty chemicals for tanning industry.
Products :	· Leather Binders · Leather Softeners · Chrome Alum · Leather Tanning Chemicals · Fat Liquors Leather Chemical · Acid Leather Dyes
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

GENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Maximum Limit Dealt :	Not Available
Experience :	Not Available
Remark:	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Maximum Limit Dealt :	Not Available
Experience :	Not Available
Remark:	Not Available

No. of Employees :

Not Available

Bankers :

Bank Name	HDFC Bank Limited
Branch	HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India
Person Name (With Designation)	Not Available
Contact Number	Not Available
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

· State Bank of India

· ICICI Bank Limited

· Central Bank of India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG-TERM BORROWINGS
Loans taken for fixed assets	1.487	2.314
SHORT-TERM BORROWINGS
Rupee term loans from banks	138.761	101.402
Rupee term loans from others	0.000	27.143
Total	140.248	130.859

Notes:

LONG-TERM BORROWINGS

Vehicle loans from banks are secured by way of hypothecation of the respective vehicles. These loans are repayable in equated monthly installments ranging from Rs.0.015 million to Rs.0.048 million per month as per repayment schedule which is upto 7 July 2015. The interest rate ranges between 8.50% p.a. to 12.00% p.a.

Represents interest free sales tax deferment loan from Government of Andhra Pradesh vide letter no. 10/2/8/962/962/FD, dated 15 July 1998. These loans are repayable after a period of 14 years from the end of the year of respective loan. These loans are repayable by 2018-19.

SHORT-TERM BORROWINGS

The Company has created a charge on loan/facilities obtained from the bank, by hypothecation of all the current assets, plant and machinery, vehicles both present and future, and by deposit of title deeds of certain immovable properties of the Company. Export packing credit loan was obtained on short-term basis and repayable within 150 days from the date of draw down. Interest is payable at the rate of LIBOR + 350 bps. The interest rate ranges from 3.79% p.a. to 4.03 % p.a. Cash credit is payable on demand and carries an interest ranging from 11.95% p.a. to 12.35% p.a.

The Company has created a charge on loan/facilities obtained from the bank, by hypothecation of the whole of the current assets, plant and machinery, vehicles both present and future, and by deposit of title deeds of certain immovable properties of the Company. Export packing credit loan was obtained on short-term basis and repayable within 150 days from the date of draw down. Interest is payable at the rate of LIBOR + 350 bps. The interest rate is in the range 3.79% p.a. to 4.03 % p.a.

Auditors :
Name :	BSRR and Company Chartered Accountants
Address :	Reliance Humsafar, IV Floor, Road No.11, Banjara Hills, Hyderabad – 500034, Telangana, India
PAN No:	AAKFB1884H
Memberships :	Not Available
Collaborators :	Not Available
Ultimate Holding Company:	Odewald and Compagnie Gesellschaft fur Beteiligungen GmbH, Germany
Company having significant influence on the holding company (SIE) :	TFL Holding GmbH, Germany
Holding Company :	TFL Ledertechnik GmbH, Germany
Fellow Subsidiary Companies :	TFL France S.A.S, France TFL Italia SpA, Italy TFL Hong Kong Limited, Hong Kong TFL China Limited, China TFL do Brazil Industane Quimica Limited, Brazil TFL Argentina SA, Argentina TFL Thailand Company Limited, Thailand TFL Ledertechnik AG, Switzerland TFL USA/Canada Inc, United States Neveos AG, Switzerland TFL Deri Teknolojisi Sanayi ve Tica, Turkey

CAPITAL STRUCTURE

AS ON: 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10253113	Equity Shares	Rs.10/- each	Rs.102.531 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	102.531	102.531	102.531
(b) Reserves & Surplus	714.228	598.721	480.835
(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)	816.759	701.252	583.366
(3) Non-Current Liabilities
(a) long-term borrowings	2.445	3.801	3.611
(b) Deferred tax liabilities (Net)	33.888	36.596	37.102
(c) Other long term liabilities	44.647	41.397	37.382
(d) long-term provisions	8.904	10.689	8.191
Total Non-current Liabilities (3)	89.884	92.483	86.286
(4) Current Liabilities
(a) Short term borrowings	138.761	128.545	50.481
(b) Trade payables	456.928	362.348	232.735
(c) Other current liabilities	55.281	55.526	74.946
(d) Short-term provisions	9.080	13.191	73.058
Total Current Liabilities (4)	660.050	559.610	431.220
TOTAL	1566.693	1353.345	1100.872
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	309.097	297.108	280.013
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	3.866	2.420	0.433
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.162	1.162	1.162
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10.730	10.287	13.838
(e) Other Non-current assets	12.302	4.977	0.000
Total Non-Current Assets	337.157	315.954	295.446
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	241.713	241.153	155.226
(c) Trade receivables	818.674	603.993	567.108
(d) Cash and cash equivalents	86.636	138.633	55.742
(e) Short-term loans and advances	25.951	21.147	26.779
(f) Other current assets	56.562	32.465	0.571
Total Current Assets	1229.536	1037.391	805.426
TOTAL	1566.693	1353.345	1100.872

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
SALES
	Turnover	2315.634	1670.864	1348.038
	Other Income	NA	NA	NA
	TOTAL (A)	NA	NA	NA
EXPENSES
	TOTAL (B)	NA	NA	NA
PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		325.029	291.859	336.463
FINANCIAL EXPENSES (D)		14.999	9.394	13.395
PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		310.030	282.465	323.068
DEPRECIATION/ AMORTISATION (F)		19.096	17.809	15.441
PROFIT BEFORE TAX (E-F) (G)		290.934	264.657	307.627
TAX (H)		101.822	85.557	90.377
PROFIT AFTER TAX (G-H) (I)		189.111	179.099	217.248
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		388.323	286.716	150.774
APPROPRIATIONS
	Interim Dividend	61.519	51.266	51.266
	Tax on Interim Dividend	10.455	8.317	8.317
	Transfer to General Reserve	18.911	17.910	21.725
BALANCE CARRIED TO THE B/S		486.549	388.323	286.716
EARNINGS IN FOREIGN CURRENCY		1255.485	740.220	NA
Earnings Per Share (Rs.)		18.44	17.47	NA

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	1.356	0.921	1.278
Cash generated from operations	NA	NA	NA
Net Cash Flow from (used in) operations	169.618	258.632	81.701
Net Cash Flows From (used in) Operating Activities	69.591	162.776	(12.419)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	8.17	10.72	16.12
Operating Profit Margin (PBIDT/Sales)	(%)	14.04	17.47	24.96
Return on Total Assets (PBT/Total Assets}	(%)	18.63	19.61	27.98
Return on Investment (ROI) (PBT/Networth)		0.36	0.38	0.53
Debt Equity Ratio (Total Debt /Networth)		0.17	0.19	0.09
Current Ratio (Current Asset/Current Liability)		1.86	1.85	1.87

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	102.531	102.531	102.531
Reserves & Surplus	480.835	598.721	714.228
Share Application money pending allotment	0.000	0.000	0.000
Net worth	583.366	701.252	816.759
Long-term borrowings	3.611	3.801	2.445
Short term borrowings	50.481	128.545	138.761
Current Maturities of Long term debt	1.278	0.921	1.356
Total borrowings	55.370	133.267	142.562
Debt/Equity ratio	0.095	0.190	0.175

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	1348.038	1670.864	2315.634
		23.948	38.589

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	1348.038	1670.864	2315.634
Profit	217.248	179.099	189.112
	16.12%	10.72%	8.17%

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	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	Yes
32	Litigations that the firm/promoter involved in	---
33	Market information	---
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

NOTE:

The registered office of the company has been shifted from 54, Thiruneermalai Road, Nagalkeni, Chrompet, Chennai – 600044, Tamilnadu, India to the present address w.e.f. 2005.

BACKGROUND:

The Company is a wholly owned subsidiary of TFL Ledertechnik GmbH, Germany (TFL Germany). Subject was incorporated as a private limited company under the Companies Act, 1956. The operations of the Company include manufacture and sale of leather tanning and leather finishing chemicals. The Company is also engaged in the trading of dyes and leather specialty chemicals for tanning industry and also earns commission on sales made in India by the group companies. During the year ended 31 March 2004, TFL India and TFL Germany acquired Quinn International Private Limited (QIPL) and Quinn India Private Limited (QPL) respectively. Subsequent to the acquisition, QIPL and QPL were amalgamated with TFL India in accordance with the scheme of amalgamation approved by High Courts effective from 1 April 2003. The amalgamation was effected in the accounts for the year ended 31 March 2004.

OPERATING PERFORMANCE:

During the year, the Company achieved net sales turnover of Rs.2315.634 million as against the Turnover of Rs.1670.864 million during the previous year. The Company’s pre-tax profit for the year was Rs.290.934 million as against Rs.264.656 million during the previous year.

FUTURE OUTLOOK:

Indian Leather Industry continues to achieve substantial growth and holds a prominent place in the Indian Economy and is known for its consistency in considerable export / foreign exchange earnings. The Indian Leather industry is bestowed with affluence of raw materials, availability of skilled man power, innovative technology and eco standards. The Government of India had identified the Leather Sector as a Focus Sector in its Foreign Trade Policy in view of its immense potential for export growth prospects and employment generation. Accordingly, the Government is also implementing various special focus initiatives under the Foreign Trade Policy for the growth of Leather Sector viz., Integrated Development of Leather Sector Scheme and Indian Leather Development Programme is being implemented to the assist the Manufacturing Units in all segments of the Leather Industry to build up capacities and modernize the production facilities. With the implementation of various Industrial Developmental Programmes as well as export promotional activities, Leather Industry is poised for better performance. Keeping in view the past performance and Industry’s inherent strengths of skilled man power, innovative technology, increasing industry compliance to international environmental standards and dedicated support of the allied industries, the Indian Leather Industry aims to augment the production, thereby enhance export, and resultantly create additional employment opportunities.

With the following Strengths the Indian Leather Sector is in an advantageous position for improved performance.

· Own raw material source - 2 billion sq. ft. of leather produced annually

· Some varieties of goat / calf / sheep skins command premium position

· Strong and eco-sustainable tanning base

· Modernized manufacturing units

· Trained / skilled manpower at competitive wage levels

· World-class institutional support for Design & Product Development, HRD and R & D.

· Presence of support industries like leather chemicals and finishing auxiliaries

· Presence in major markets - Long Europe experience

· Strategic location in the Asian landmass

Emerging Strengths

· Design development initiatives by institutions and individuals

· Continuous modernization and technology up gradation

· Economic size of manufacturing units

· Constant human resource development programme to enhance productivity

· Increasing use of quality components

· Shorter prototype development time

· Delivery compliance

· Growing domestic market for footwear and leather articles

With the above positive factors, the Company is aiming for continued better performance in the coming years by servicing the Leather Industry in terms of meeting its timely requirements.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWINGS
Deferred sales tax loan	0.958	1.487
Total	0.958	1.487

INDEX OF CHARGES:

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10260986	29/10/2013 *	365,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B88724513

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Other Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Computer equipment

· Other equipments

Intangible Assets

· Goodwill

· Know-how

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.66.38
UK Pound	1	Rs.100.45
Euro	1	Rs.70.55

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	ASN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		57

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.