MIRA INFORM REPORT

Report No. :	347576
Report Date :	29.10.2015

IDENTIFICATION DETAILS

Name :	ESSEN MULTIPACK LIMITED (w.e.f. 1999)
Formerly Known As :	ESSEN MULTIPACK PRIVATE LIMITED
Registered Office :	Plot No.5, Survey No.209, Veraval (Shapar), Taluka-Kotda, Sangani, Rajkot – 360 024, Gujarat
Tel No.:	91-2827-252018/ 252019/ 252610
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	27.05.1994
Com. Reg. No.:	04-022139
Capital Investment / Paid-up Capital :	Rs.5.790 Million
CIN No.: [Company Identification No.]	U25209GJ1994PLC022139
IEC No.:	2496002068
TAN No.: [Tax Deduction & Collection Account No.]	RKTE00041G
PAN No.: [Permanent Account No.]	AAACE4676P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Importing of Polyethylene Film for packaging.
No. of Employees :	225 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject was established in the year 1994 and it is a manufacturer and importer of polyethylene films. For the financial year ended 2014, company has reported 24.57% sales turnover growth as compared to previous sales turnover and it has maintained decent profitability margins at 10.13% during the year under a review. Rating takes into consideration company’s established track record of business operations marked by its satisfactory financial profit along with sound debt protection metrics and fair liquidity position. Trade relation are reported as fair. Payment terms are reported to be usually correct. In view of aforesaid, the company can be considered for business dealings at usual trade terms and condition.

NOTES :

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

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. Paresh Rawal
Designation :	Administrative Department
Contact No.:	91-2827-252019 91-9825074474
Date :	28.10.2015

LOCATIONS

Registered Office/ Factory :	Plot No.5, Survey No.209, Veraval (Shapar), Taluka-Kotda, Sangani, Rajkot – 360 024, Gujarat, India
Tel. No.:	91-2827-252018/ 252019/ 252610
Mobile No.:	91-9825074474 (Mr. Paresh Rawal)
Fax No.:	91-2827-252610
E-Mail :	mnmanvarca@rediffmail.com essen@essenpoly.com
Website :	http://www.essenpoly.com
Area:	15000 sq. ft.
Location :	Owned
Locality:	Industrial

DIRECTORS

AS ON 01.07.2013

Name :	Mr. Jawahar Chunilal Pandya
Designation :	Managing Director
Address :	Shree Gayatri Krupa, 4, Parnakuti Society, Nana Mava Road, Rajkot – 360 005, Gujarat, India
Date of Birth/Age :	07.05.1961
Date of Appointment :	01.04.2010
DIN No.:	00029544
Name :	Mr. Girishbhai Chunilal Pandya
Designation :	Whole-time Director
Address :	Shree Gayatri Krupa, 4, Parnakuti Society, Nana Mava Road, Rajkot – 360 005, Gujarat, India
Date of Birth/Age :	01.07.1964
Date of Appointment :	01.07.2013
DIN No.:	00029624
Name :	Mr. Vishal Jawahar Pandya
Designation :	Whole-time Director
Address :	Shree Gayatri Krupa, 4, Parnakuti Society, Nana Mava Road, Rajkot – 360 005, Gujarat, India
Date of Birth/Age :	07.06.1986
Date of Appointment :	01.04.2010
DIN No.:	02454844
Name :	Mr. Atulbhai Chunilal Pandya
Designation :	Whole-time Director
Address :	Shree Gayatri Krupa, 4, Parnakuti Society, Nana Mava Road, Rajkot – 360 005, Gujarat, India
Date of Birth/Age :	06.02.1969
Date of Appointment :	01.04.2010
DIN No.:	00029663
Name :	Mr. Vishnukumar Dilsukhrai Vyas
Designation :	Director
Address :	Shantiniketan Apartment, Block No.201, Krishnanagar Main Road, Rajkot – 360 005, Gujarat, India
Date of Birth/Age :	12.09.1960
Date of Appointment :	01.03.2005
DIN No.:	01186761
Name :	Mr. Pranav Girishbhai Trivedi
Designation :	Director
Address :	Om Somnath Society-1, ST No.2, Near Rozary School, 150 Ft. Ring Road, Rajkot – 360 005, Gujarat, India
Date of Birth/Age :	06.12.1977
Date of Appointment :	15.05.2010
DIN No.:	03130319

KEY EXECUTIVES

Name :	Mr. Paresh Rawal
Designation :	Administrative Department

MAJOR SHAREHOLDERS

AS ON 01.07.2013

Names of Shareholders	No. of Shares
Jawahar Pandya	37100
Jerambhai Patel	7900
Savitaben Patel	7500
Piyush Patel	7500
Nimesh Patel	7500
Rajendra Sanghvi	9475
Gitaben Sanghavi	5000
Harshidaben Pandya	40133
Chunilal Pandya	25000
Ranjabben Pandya	25000
Girish Pandya	57200
Atul Pandya	51359
Gitaben Pandya	45000
Meetaben Pandya	45000
Jawahar Pandya-HUF	30600
Atul Pandya-HUF	62000
Girish Pandya-HUF	55733
Vishal Pandya	40000
Hemalben Pandya	20000
Total	579000

AS ON 01.07.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Importing of Polyethylene Film for packaging.
Products :	· UV Stabilized Film for Poly Houses · Pond/Canal Lining Film · Mulch Film · PE Shrink and Pallet Hooding Film · Vacuum Bag · Cotton Bales Bag · Banana Bag · PE Foam Film · Wide Width Film
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :
Products :	Raw Materials
Countries :	Qatar
Terms :
Selling :	Cash and Credit (30/ 60/ 90 days)
Purchasing :	Cash and Credit (30/ 60/ 90 days)

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
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

End Users and OEM’s

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

No. of Employees :

225 (Approximately)

Bankers :

Banker Name	Axis Bank Limited
Branch Address	Titan, Near K.K.V. Circle, Kalawad Road, Rajkot – 360 005, Gujarat, India
Person Name (With Designation)	Not Divulged
Contact Number	91-281-6695999 (Ringing)
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)	Cash Credit: Rs.48.000 million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

· Punjab National Bank, Jubilee Branch, Jawahar Road, Rajkot – 360 002, Gujarat, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Term Loan From Bank
From Axis Bank Limited, Rajkot	26.281	0.000
Less: Current Maturities	(5.475)	0.000
i. Primarily secured against entire unencumbered fixed assets of the company and collateral secured against entire current assets of the company. ii. Repayable in 60 equal monthly installment of Rs.0.456 million iii. Rate of Interest is 12.25%
SHORT TERM BORROWINGS
Loans Repayable on demand
From Bank - Working Capital Finance From Axis Bank Limited (Secured against hypothecation of Inventories and Exclusive charge over land and building, plant and machinery of the company)	0.989	15.812
Total	21.795	15.812

Auditors :
Name :	M.N. Manvar and Company Chartered Accountants
Address :	504, Star Plaza, Phulchhab Chowk, Near Circuit House, Rajkot – 360 005, Gujarat, India
Tel. No. :	91-281-6627070/ 2455750
PAN No.:	ABSPM6534E
Memberships :	Not Available
Collaborators :	Not Available
Associate Concern :	Essen Polymers Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs.12.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
579000	Equity Shares	Rs.10/- each	Rs.5.790 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	5.790	5.790	5.790
(b) Reserves & Surplus	191.898	147.570	119.883
(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)	197.688	153.360	125.673
(3) Non-Current Liabilities
(a) Long-term borrowings	40.850	13.102	8.134
(b) Deferred tax liabilities (Net)	3.462	2.909	2.780
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	44.312	16.011	10.914
(4) Current Liabilities
(a) Short term borrowings	0.989	15.812	10.046
(b) Trade payables	22.481	41.448	22.913
(c) Other current liabilities	18.048	9.294	4.407
(d) Short-term provisions	28.888	24.090	17.184
Total Current Liabilities (4)	70.406	90.644	54.550
TOTAL	312.406	260.015	191.137
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	98.060	41.415	35.126
(ii) Intangible Assets	0.000	0.000	0.000
(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	30.178	58.895	46.807
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.299	1.684	1.733
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	129.537	101.994	83.666
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	48.598	48.954	41.436
(c) Trade receivables	44.108	47.440	31.465
(d) Cash and cash equivalents	56.392	31.348	0.112
(e) Short-term loans and advances	33.701	30.206	34.458
(f) Other current assets	0.070	0.073	0.000
Total Current Assets	182.869	158.021	107.471
TOTAL	312.406	260.015	191.137

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	504.586	407.647	296.640
		Other Income	7.478	4.023	3.217
		TOTAL	512.064	411.670	299.857
Less	EXPENSES
		Cost of material consumed	353.889	292.261	224.896
		Purchase of stock-in-trade	0.000	4.883	0.000
		Changes in inventories of finished goods, work-in-progress and stock-in-progress	1.013	(4.933)	(7.252)
		Employee Benefit Expenses	22.848	19.775	17.341
		Other Expenses	47.279	41.657	28.904
		Exceptional Items	0.003	(0.443)	(0.290)
		TOTAL	425.032	353.200	263.599
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		87.032	58.470	36.258
Less	FINANCIAL EXPENSES		5.142	2.672	1.878
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		81.890	55.798	34.380
Less/ Add	DEPRECIATION/ AMORTISATION		9.083	4.520	3.676
	PROFIT/ (LOSS) BEFORE TAX		72.807	51.278	30.704
Less	TAX		21.705	16.862	10.186
	PROFIT/ (LOSS) AFTER TAX		51.102	34.416	20.518
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		125.725	101.463	90.174
Less	APPROPRIATIONS
		Proposed Dividend	5.790	5.790	5.790
		Provision for Dividend Tax	0.984	0.939	0.939
		Transferred to General Reserve	7.185	3.425	2.500
	BALANCE CARRIED TO THE B/S		162.868	125.725	101.463
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on F.O.B. basis	28.487	12.147	NA
	TOTAL EARNINGS		28.487	12.147	NA
	IMPORTS
		Raw Materials	192.490	135.154	MA
		Capital Goods	0.000	0.506	NA
	TOTAL IMPORTS		192.490	135.660	NA
	Earnings / (Loss) Per Share (Rs.)		88.26	59.44	35.44

Particulars	31.03.2015
Sales Turnover (Approximately)	500.000

The above information has been parted by Mr. Paresh (Administrative Department)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	10.13	8.44	6.92
Operating Profit Margin (PBDIT/ Sales)	(%)	17.25	14.34	12.22
Return on Total Assets (PBT/Total Assets}	(%)	25.80	25.50	21.27
Return on Investment (ROI) (PBT/Networth)		0.37	0.33	0.24
Debt Equity Ratio (Total Debt/Networth)		0.21	0.19	0.14
Current Ratio (Current Asset/Current Liability)		2.60	1.74	1.97

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	5.475	0.000	NA
Cash generated from operations	62.530	NA	NA
Net cash flow from operating activity	33.925	NA	NA

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Share Capital	5.790	5.790	5.790
Reserves & Surplus	119.883	147.570	191.898
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	125.673	153.360	197.688
Long Term borrowings	8.134	13.102	40.850
Short Term borrowings	10.046	15.812	0.989
Total borrowings	18.180	28.914	41.839
Debt/Equity ratio	0.145	0.189	0.212

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Revenue from Operations	296.640	407.647	504.586
		37.421	23.780

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Revenue from Operations	296.640	407.647	504.586
Profit	20.518	34.416	51.102
	6.92%	8.44%	10.13%

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	Yes
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 four 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

LITIGATION DETAILS:

HIGH COURT OF GUJARAT

TAX APPEAL No. 347 of 2012

Status : PENDING

( Converted from : ST/1137/2012 )

CCIN No : 001092201200347

Last Listing Date:

03/07/2012

Coram

· HONOURABLE THE ACTING CHIEF JUSTICE MR. VIJAY MANOHAR SAHAI · HONOURABLE MR.JUSTICE N.V.ANJARIA

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER - CENTRAL EXCISE AND CUSTOMS	MS SEJAL K MANDAVIA for: Appellant(s) 1

S.NO.	Name of the Respondant	Advocate On Record
1	ESSEN MULTIPACK LIMITED	MR PARESH V SHETH for :Opponent(s) 1

Presented On	: 11/06/2012	Registered On	: 13/06/2012
Bench Category	: DIVISION BENCH	District	: RAJKOT
Case Originated From	: THROUGH HIS/HER/THEIR ADVOCATE	Listed	: 46 times
Stage Name	: FOR REGULAR ADMISSION (SPL.)

Classification	· DB - OJ - TAX APPEAL - CENTRAL EXCISE ACT, 1944 - UNDER SECTION 35G
Act	· CENTRAL EXCISES AND SALT ACT, 1944

Other Forums

S. No.	CASEDETAILS	TRIBUNAL REFERRENCE	ORDER PASSED BY	JUDGEMENT DATE	PLACE
1	A/2059/WZB/AHD/2011	CUSTOMS EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, WEST ZONAL BENCH, AHMEDABAD	MEMBER (JUDICIAL) AND MEMBER (TECHNICAL)	08/06/2011	RAJKOT
Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	11/06/2012	CERTIFIED COPY	MS SEJAL K MANDAVIA ADVOCATE for PETITIONER(s) 1	5	MS SEJAL K MANDAVIA:1
2	11/06/2012	MEMO OF APPEAL/PETITION/SUIT	MS SEJAL K MANDAVIA ADVOCATE for PETITIONER(s) 1	50	MS SEJAL K MANDAVIA:1
3	06/08/2012	VAKALATNAMA	MR PARESH V SHETH ADVOCATE for RESPONDENT(s) 1	5	MR PARESH V SHETH:1
4	15/08/2012	VAKALATNAMA	MR PARESH V SHETH ADVOCATE for RESPONDENT(s) 1	-	MR PARESH V SHETH:1
5	15/08/2012	VAKALATNAMA	MS SEJAL K MANDAVIA ADVOCATE for PETITIONER(s) 1	-	MS SEJAL K MANDAVIA:1
Court Proceedings

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	03/07/2012	3	-	FOR REGULAR ADMISSION (SPL.)	FIXED RULE / ADMIT	· HONOURABLE THE ACTING CHIEF JUSTICE MR. VIJAY MANOHAR SAHAI · HONOURABLE MR.JUSTICE N.V.ANJARIA
Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	Questions	Transferred
1	TAX APPEAL/347/2012	· HONOURABLE THE ACTING CHIEF JUSTICE MR. VIJAY MANOHAR SAHAI · HONOURABLE MR.JUSTICE N.V.ANJARIA	03/07/2012	N	ORDER	-	Y

PREAMBLE:

The company is engaged mainly in the business of manufacture and sale of Plastic Films and Sheets as Strategic activity. The company also derives income from sale of Plastic Wastes and Scrap which form integral part of manufacturing process which is non-core and non-strategic in nature. Further, the company has commenced a Wind Mill undertaking by installing wind turbine generator at Village Mitli, District Jamnagar for power generation during the year. The company has entered into an agreement with GETCO for supply of electricity for captive consumption.

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Loans and advances from related parties	20.044	13.102
Total	20.044	13.102

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10133917	09/12/2013 *	48,275,000.00	AXIS BANK LIMITED	"TITAN" NEAR K.K.V. CIRCLE, KALAWAD ROAD, RAJKOT, GUJARAT - 360005, INDIA	B91698340

* Date of charge modification

FIXED ASSETS

· Land

· Land - Industrial, Junagadh

· Land - (Staff Resi.)

· Approach Road

· Building-Factory

· Building-Staff Quarter

· Plant and Machinery

· Tools

· Technical Knowhow Fees

· Material Handling Equipment

· Laboratory Equipment

· Electric Installation

· Office Equipment

· Air Conditioners

· Furniture and Fixtures

· Vehicles

· Computers

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.65.04
UK Pound	1	Rs.99.58
Euro	1	Rs.71.75

INFORMATION DETAILS

Information Gathered by :	KAM
Analysis Done by :	KAR
Report Prepared by :	RKI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
-- PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.