MIRA INFORM REPORT

Report No. :	346360
Report Date :	23.10.2015

IDENTIFICATION DETAILS

Name :	DELTON CABLES LIMITED
Registered Office :	Delton House, 4801 Bharat Ram Road, 24 Darya Gunj, New Delhi – 110002
Tel. No.:	91-11-23273905
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	26.09.1964
Com. Reg. No.:	55-004255
Capital Investment / Paid-up Capital :	Rs.86.400 Million
CIN No.: [Company Identification No.]	L31300DL1964PLC004255
IEC No.:	Not Available
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.
Line of Business :	Manufacturer and Supplier of Wires, Cables and Switchgears and also prime Supplier to the Power, Telecommunication, Railways, Steel and Mining Sectors.
No. of Employees :	221 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 1964 engaged in the manufacturing of cables and switchgears. The ratings also take into consideration the moderate financial metrics of the company as reflected by its loss making nature of operations, leverage capital structure and weak debt coverage metrics. Rating further constrained on account of company’s working capital intensive operations, exposure to volatility in raw material prices and intense competition in the cable industry. Rating weakness is partially offset by extensive industry experience of promoters in cable and switchgear industry along with established track record of operations and diversified clientele base of the company. Trade relations are reported as fair. Payments are reported to be slow but correct. In view of aforesaid, the company can be considered for business dealing with some caution.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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	CARE
Rating	Long term bank facilities= BB
Rating Explanation	Inadequate credit quality and high credit risk.
Date	23.04.2015

Rating Agency Name	CARE
Rating	Short term bank facilities= A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	23.04.2015

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

Management Non Co-operative (91-22-24936501 / 91-11-23273905 / 06 / 07)

LOCATIONS

Registered/ Head Office :	Delton House, 4801 Bharat Ram Road, 24 Darya Gunj, New Delhi – 110002, India
Tel. No.:	91-11-23273905-08
Fax No.:	91-11-23280375/ 23272178
E-Mail :	shares@deltoncables.com delhi@delton.wiprobt.ems.vsnl.net.in dcl@deltoncables.com info@deltoncables.com cs@deltoncables.com
Website :	http://www.deltoncables.com
Factory 1 :	17/4, Mathura Road, Faridabad – 121002, Haryana, India
Tel. No.:	91-129-2288225
Fax No.:	91-129-2223998
Factory 2 :	24, Shivaji Marg, New Delhi – 11015, India
Tel. No.:	91-11-25928280/ 41427377
Fax No.:	91-11-25928037
Factory 3 :	70^th Milestone, Delhi Jaipur Highway, Dharuhera – 122106, Haryana, India
Tel. No.:	91-1274-2422229/ 242295
Fax No.:	91-1274-247123
Factory 4 :	(Switchgear Division) C-22/23, Sector – 57, Noida – 201301, Uttar Pradesh, India
Tel. No.:	91-120-4248987
Branch Offices :	Located at · Mumbai · Chennai · Bangalore · Kolkata

DIRECTORS

AS ON 31.03.2015

Name :	Mr. Vijender Kumar Gupta
Designation :	Chairmen and Managing director
Name :	Mr. Vivek Gupta
Designation :	Joint Managing Director
Name :	Mrs. Shalini Gupta
Designation :	Director
Name :	Mr. Vijay Kumar Goel
Designation :	Director
Name :	Mr. Mahesh Prasad Mehrotra
Designation :	Director
Name :	Mr. Achintya Karati
Designation :	Director
Name :	Mr. Bharat Bhushan Chadha
Designation :	Director
Name :	Mr. Surender Singh Bhandari
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Jitender Kumar
Designation :	Company Secretary

SHAREHOLDING PATTERN

AS ON 30.06.2015

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1737585	20.11
Bodies Corporate	4118865	47.67
Any Others (Specify)	519468	6.01
Others	519468	6.01
Sub Total	6375918	73.80
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6375918	73.80
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	2868	0.03
Sub Total	2868	0.03
(2) Non-Institutions
Bodies Corporate	230826	2.67
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1497502	17.33
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	441850	5.11
Any Others (Specify)	91036	1.05
Non Resident Indians	8745	0.10
Hindu Undivided Families	82119	0.95
Trusts	150	0.00
Clearing Members	22	0.00
Sub Total	2261214	26.17
Total Public shareholding (B)	2264082	26.20
Total (A)+(B)	8640000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	8640000	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of Wires, Cables and Switchgears and also prime Supplier to the Power, Telecommunication, Railways, Steel and Mining Sectors.
Products :	Wires Cables Switchgears
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	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 :

221 (Approximately)

Bankers :

Banker Name :	The Federal Bank Limited
Branch :	Not Divulged
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 :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

· Canara Bank

· Punjab National Bank

Facilities :

SECURED LOANS	31.03.2015 Rs. In Million	31.03.2014 Rs. In Million
Long Term Borrowings
Term Loans From Banks
Vehicle Loan	0.811	0.146
From financial institutions
Vehicle Loan	0.000	0.176
Short Term Borrowings
Loan Repayable on Demand From Banks
Cash Credit	229.889	149.806
Working Capital demand loan	154.057	154.103
Buyer’s Credit	23.649	21.131
Letter of Credit	118.091	173.517
Total	526.497	498.879

Auditors :
Name :	S.R. Dinodia and Company Chartered Accountants
Address :	K – 39, Connaught Place, New Delhi – 110001, India
Collaborators :	Not Divulged
Membership :	Not Divulged
Enterprises having Significant influence of KMP’s :	Delton International Limited Vishranti Trading Enterprises Limited Saneh Industrial Investments Limited B and M Trading and Investment Company Limited Delton Cable Company Viga Trade Solutions Private Limited Ram Kumar Gupta and Sons Limited Allied Promoters Limited Shrimati Shanti Devi Charity Trust

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
9400000	Equity Shares	Rs. 10/- each	Rs.94.000 Million
40000	10% Cumulative Convertible Preference Shares	Rs. 100/- each	Rs.4.000 Million
20000	9.8% Redeemable Cumulative Preference Shares	Rs. 100/- each	Rs.2.000 Million
	Total		Rs.100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8640000	Equity Shares	Rs. 10/- each	Rs.86.400 Million

Reconciliation of the shares outstanding at the beginning and at the end of the reporting year

Equity Shares	31.03.2015
	No. of shares	Amount
Balances of shares at the beginning of year	2880000	28.800
Add: Addition during the year	5760000	57.600
Less: Buy back during the year	--	--
Balances of Shares at the end of the year	8640000	86.400

Terms/rights attached to equity shares

The company has only one class of 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.

During the year ended March 31, 2015, the amount of per share dividend recognized as distributions to equity shareholders is NIL (March 31, 2014: NIL).

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.

Details of shareholder holding more than 5 percent shares in the company

Name of Shareholders	31.03.2015
	No. of shares	% holding
Vishranti Trading Enterprises Limited	2805501	32.47
Delton Cable Company	1107450	12.82
	3912951	45.29

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	86.400	28.800	28.800
(b) Reserves & Surplus	115.973	183.325	206.374
(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)	202.373	212.125	235.174
(3) Non-Current Liabilities
(a) long-term borrowings	1.581	1.127	1.670
(b) Deferred tax liabilities (Net)	0.000	0.000	5.767
(c) Other long term liabilities	9.482	6.561	10.013
(d) long-term provisions	0.954	0.885	3.319
Total Non-current Liabilities (3)	12.017	8.573	20.769
(4) Current Liabilities
(a) Short term borrowings	525.686	498.557	446.377
(b) Trade payables	262.765	271.045	203.432
(c) Other current liabilities	49.393	22.723	28.572
(d) Short-term provisions	0.287	0.330	1.085
Total Current Liabilities (4)	838.131	792.655	679.466
TOTAL	1052.521	1013.353	935.409
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	69.335	81.847	89.680
(ii) Intangible Assets	0.197	0.965	3.334
(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	0.047	0.047	0.047
(c) Deferred tax assets (net)	16.291	16.315	6.207
(d) Long-term Loan and Advances	29.011	22.709	20.122
(e) Other Non-current assets	16.770	9.825	16.385
Total Non-Current Assets	131.651	131.708	135.775
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	379.029	345.788	321.800
(c) Trade receivables	419.613	414.595	358.834
(d) Cash and cash equivalents	19.222	35.789	23.032
(e) Short-term loans and advances	85.951	61.863	69.738
(f) Other current assets	17.055	23.610	26.230
Total Current Assets	920.870	881.645	799.634
TOTAL	1052.521	1013.353	935.409

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Revenue from Operations	1313.036	1078.008	1161.421
		Other Income	8.207	11.795	6.718
		TOTAL (A)	1321.243	1089.803	1168.139
Less	EXPENSES
		Cost of Materials Consumed	919.732	784.157	836.284
		Purchases of Stock-in-Trade	107.998	40.493	6.476
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(38.235)	(12.015)	(4.089)
		Employees benefits expense	96.657	89.586	101.365
		Transfer from Revaluation Reserve	0.000	(0.226)	(0.226)
		Exceptional Item	(10.331)	(0.520)	20.366
		Other expenses	153.843	142.948	155.257
		TOTAL (B)	1229.664	1044.423	1115.433
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		91.579	45.380	52.706
Less	FINANCIAL EXPENSES (D)		85.736	70.238	76.665
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.843	(24.858	(23.959)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.479	12.669	14.957
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(4.636)	(37.527)	(38.916)
Less	TAX (H)		1.980	(11.528)	(10.865)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(6.616)	(25.999)	(28.051)
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	49.300	28.188	22.018
	IMPORTS
		Raw Materials	96.059	111.705	89.966
		Capital Goods	0.000	1.307	0.000
	TOTAL IMPORTS		96.059	113.012	89.966
	Earnings/ (Loss) Per Share (Rs.)		(0.77)	(3.01)	(9.74)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	0.483	0.513	1.547
Cash generated from operations	33.343	10.685	71.132
Net cash from operating activities	32.366	10.350	66.382

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin PAT / Sales	(%)	(0.50)	(2.41)	(2.42)
Operating Profit Margin (PBDIT/Sales)	(%)	6.97	4.21	4.54
Return on Total Assets (PBT/Total Assets)	(%)	(0.45)	(3.76)	(4.19)
Return on Investment (ROI) (PBT/Networth)		(0.02)	(0.18)	(0.17)
Debt Equity Ratio (Total Debt /Networth)		2.61	2.36	1.91
Current Ratio (Current Asset/Current Liability)		1.10	1.11	1.18

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs.22.70/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	28.800	28.800	86.400
Reserves & Surplus	206.374	183.325	115.973
Net worth	235.174	212.125	202.373
long-term borrowings	1.670	1.127	1.581
Short term borrowings	446.377	498.557	525.686
Current Maturities of Long term debt	1.547	0.513	0.483
Total borrowings	449.594	500.197	527.750
Debt/Equity ratio	1.912	2.358	2.608

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	1161.421	1078.008	1313.036
		(7.182)	21.802

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	1161.421	1078.008	1313.036
Profit	(28.051)	(25.999)	(6.616)
	(2.42%)	(2.41%)	(0.50%)

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	No
10	Date of Birth of Proprietor / Partners / Directors	No
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	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

PERFORMANCE REVIEW

In F.Y. 15, several measures were taken for improving the performance of the Company and to secure new orders across various businesses and geographies.

The company achieved a turnover of Rs. 1421.130 million as against Rs. 1182.010 during the previous financial year. During the year there is no cash loss in the Company. The net loss for the financial year 2014-15 is Rs. 6.616 million as compared to the loss of Rs. 25.999 in the previous financial year 2013-14.

OUTLOOK

There is little evidence both in the domestic and global markets for an early restoration of demand-supply equilibrium and consequent recovery in the market. To keep abreast with the latest trends in the industry, the company was also vigilant about technological upgradation of its production facilities, with the aim of improving assets performance and cost competitiveness. As the company is the older player in Indian Cable Industry, has coveted experience in manufacturing of wires and cables and competent to face the challenges. Much of the problem is industry centric and it is some comfort that the company is relatively better placed as compared to most of its peers. It should hence be able to strike it early as and when the industry turnaround is on the anvil.

UNSECURED LOAN:

Particulars	31.03.2015 Rs. In Million	31.03.2014 Rs. In Million
Long Term Borrowings
Other loans and advances
Deposits
From Dealers	0.770	0.805
Total	0.770	0.805

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2015

Rs. In Million

Particulars	Quarter ended 30.06.2015
	Unaudited
Net Sales/ Income from Operations	238.500
Other Operating Income	10.200
Total income from operation	248.800
Expenditure
a) Cost of Materials Consumed	169.400
b) Purchase of Stock in trade	9.400
c) Change in inventories of finished goods, work in progress & stock in trade	(10.400)
d) Employee benefits expense	22.800
e) Depreciation and amortization expense	2.100
f) Other expenses	34.300
Total	227.700
Profit from operations before Other Income, Interest and Exceptional Items (1-2)	21.100
Other Income	3.400
Profit before Interest and Exceptional Items (3+4)	24.500
Interest	23.600
Profit after Interest but before Exceptional Items (5-6)	0.800
Exceptional Items	0.000
Profit (+)/ Loss (-) from Ordinary Activities before tax (7+8)	0.800
Tax expense	0.400
Net Profit (+)/ Loss (-) from Ordinary Activities after tax (9-10)	0.400
Extraordinary Items (Net of tax expense)	0.000
Net Profit (+)/ Loss (-) for the period	0.400
Paid-up equity share capital (Face value of Rs.10/- each)	86.400
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year	--
Earnings per share
Before Extraordinary items (not annualized)
- Basic (Rs.)	0.05
- Diluted (Rs.)	0.05
Public Shareholding
- No. of shares	2264082
- Percentage of shareholding	26.20
Promoters and promoter group shareholding
Pledged/ Encumbered
- No. of shares	Nil
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	Nil
- Percentage of shares (as a % of the total share capital of the company)	Nil
Non-encumbered
- No. of shares	6375918
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00
- Percentage of shares (as a % of the total share capital of the company)	73.80
INVESTOR COMPLAINTS
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

NOTES:

1. The above financial results have been reviewed by Audit Committee and thereafter approved and taken on record by the Board of Directors in their respective meetings held on 13.08.2015.

2. The Statutory Auditors have carried out limited review of the above financial results.

3. The Companies business activities do not qualify as a reportable segment in context of Accounting Standard-17 “Segmental Reporting” under Companies Accounting Standard Rules, 2006.

4. Tax expenses for the current period represent Deferred Tax only which does not affect cash flow.

5. The previous period / year figures have been re-grouped, re-arranged and re-classified, wherever considered necessary.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10575593	26/05/2015	6,400,000.00	PUNJAB NATIONAL BANK	7, BHIKAJI CAMA PLACE, NEW DELHI, DELHI - 110066, INDIA	C56788870
2	90064007	17/06/1998	34,500,000.00	THE FEDERAL BANK LTD	59/433; PADAM SINGH ROAD, GROUND FLOOR; KAROL BAGH, NEW DELHI, DELHI - 110005, INDIA	-
3	90040679	30/07/2013 *	926,000,000.00	CANARA BANK (LEAD BANK)	PCB, CONNAUGHT PLACE, II FLOOR, WORLD TRADE TOWER, BARAKHAMBA LANE,, NEW DELHI, DELHI - 110001, INDIA	B82978917
4	90063578	30/03/1983	4,800,000.00	BANK OF AMERCIA	NT & SA, NEW DELHI, DELHI, INDIA	-
5	90063576	10/02/1983	1,798,200.00	BANK OF AMERICA	NT &M SA, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	-
6	90063550	23/06/1980	225,000.00	THE HARYANA CORP.	BAYS; NO. 17 18 & 19 SEC-17 A, OPPOSITE LIC BUILDING, CHANDIGARH, CHANDIGARH, INDIA	-
7	90040271	26/04/1991 *	6,500,000.00	HONGKONG AND SHANGHAI BANKING CORPORATION LRD.	DELHI, NEW DELHI, DELHI, INDIA	-
8	90059331	28/06/1975	3,000,000.00	MERCANTILE BANK LTD	NEW DELHI, NEW DELHI, DELHI, INDIA	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Other [Computers]

· Goodwill

· Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.89
UK Pound	1	Rs.100.39
Euro	1	Rs.73.52

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		30

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.