MIRA INFORM REPORT

Report No. :	340403
Report Date :	10.09.2015

IDENTIFICATION DETAILS

Name :	OSWAL MINERALS LIMITED
Registered Office :	8/11, Police Station Road, Pallavaram, Chennai – 600043, Tamilnadu
Tel. No.:	91-80-23090049
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	04.07.1996
Com. Reg. No.:	18-035973
Capital Investment / Paid-up Capital :	Rs.76.117 Million
CIN No.: [Company Identification No.]	L30006TN1996PLC035973
TAN No.: [Tax Deduction & Collection Account No.]	BLRO01140G
PAN No.: [Permanent Account No.]	AACCM6499G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Extracting, Trading, Exporting and Importing of different types of minerals and ores.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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 established in the year 1996 and it is an engaged in the business of existing and trading of different kind of minerals. Subject is an established company having moderate track record. For the financial year ended 2014, company has achieved growth in its turnover profit but it has failed to maintained profitability margins and reported low margins at 0.34%. Rating further constrained on account of company’s moderate financial risk profile marked by modest networth along with huge borrowing and leverage balance sheet profile of the company. However, trade relations are reported as fair. Payments are reported to be slow but correct. In view of lower profitability margins backed by huge borrowings, the company can be considered for business dealing with some caution. Note : Subject is not listed on BSE and on NSE trade in last 30 days.

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	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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Saurabh
Designation :	Account and Finance Department Manager
Contact No.:	91-80-23090049

LOCATIONS

Registered Office :	8/11, Police Station Road, Pallavaram, Chennai – 600043, Tamilnadu, India
Tel. No.:	91-80-23090049 / 91-80-22978710 / 91-80-23123187
Fax No.:	91-80-23123114
E-Mail :	oswalgroup@vsnl.com
Website :	http://www.oswalminerals.com
Corporate Office 1 :	#1034, 2^nd Floor, 1^st Main Road, (Dr. Rajkumar Road), Rajajinagar, 4^th Block, Bangalore – 460010, India
Tel. No.:	91-80-23090000
E-Mail :	info@oswalminerals.com
Corporate Office 2 :	No.6, 2nd Main Road, Ramachandrapuram, Bengaluru - 560 02, Karnataka, India
Branch Office :	Office No.9, Building No.2, Sarroday Gardan, Kalyan (West), Thane – 421301, Maharashtra, India
Tel. No.:	91-251-20270041 / 05
Warehouse :	Plot No. 410 A, CS No. 578/1, MIDC, Shiroli, Kolhapur, Maharashtra, India
Depots :	Located at : Kolhapur Minerals Limited Mumbai Kolkata Rajkot Vishakapatanam Hyderabad Nagpur Coimbatore Belgaum Chennai

DIRECTORS

As on 30.09.2014

Name :

Mr. Sripal Kumar Mohanlal

Designation :

Director

Address :

No. 6, 2nd Main Road, Ramachandrapuram, Bangalore – 560021, Karnataka, India

Date of Birth/Age :

01.07.1965

Qualification:

B.Com

Date of Appointment :

27.03.2014

DIN No.:

01000236

PAN No.:

ABZPJ7351H

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	L30006TN1996PLC035973	OSWAL MINERALS LIMITED	Managing director	27/03/2014	06/02/2004	-	Active	NO
2	U51109WB2005PTC101807	RATAN TIE-UP PRIVATE LIMITED	Director	21/02/2005	21/02/2005	-	Active	NO
3	U27107KA2007PLC044365	JAIN & SNAM ALLOYS (INDIA) LIMITED	Director	14/11/2007	14/11/2007	-	Active	NO
4	U27107KA2008PTC046211	OSWAL SMELTERS PRIVATE LIMITED	Director	28/04/2008	28/04/2008	-	Active	NO

Name :

Ms. Kothari Sapna

Designation :

Director

Address :

No. 6, 2nd Main Road, Ramachandrapuram, Bangalore – 560021, Karnataka, India

Date of Birth/Age :

01.02.1982

Qualification:

BBM

Date of Appointment :

07.05.2004

DIN No.:

00436890

Name :

Mr. Srinivas Ilendra

Designation :

Director

Address :

5, Subbiah Naidu Street Vepery, Chennai – 600007, Tamilnadu, India

Date of Birth/Age :

06.12.1962

Qualification :

B.com

Experience :

Experience in Accounts

Date of Appointment :

28.09.2004

Name :

Mr. Mohanlal Bharath Kumar Jain

Designation :

Director

Address :

No. 6, 2nd Main Road, Ramachandrapuram, Bangalore – 560021, Karnataka, India

Date of Birth/Age :

07.04.1980

Qualification:

BE

Date of Appointment :

27.03.2014

DIN No.:

01252633

Name :

Mrs. Saritha Devi

Designation :

Director

Address :

No. 6, 2nd Main Road, Ramachandrapuram, Bangalore – 560021, Karnataka, India

Date of Birth/Age :

13.01.1970

Experience :

Experience in Accounts

Date of Appointment :

29.09.2012

DIN No.:

01261180

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	U51109WB2005PTC101807	RATAN TIE-UP PRIVATE LIMITED	Director	21/02/2005	21/02/2005	-	Active	NO
2	L30006TN1996PLC035973	OSWAL MINERALS LIMITED	Director	29/09/2012	01/07/2012	-	Active	NO

Name :

Mr. Subhashchand Mohanlal

Designation :

Director

Address :

No. 6, 2nd Main Road, Ramachandrapuram, Bangalore – 560021, Karnataka, India

Date of Birth/Age :

23.01.1976

Qualification :

B.E

Experience :

Experience in Finance and Accounts

Date of Appointment :

30.09.2013

DIN No..:

01088346

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	U27101KA2005PTC035923	OSWAL ALLOYS PRIVATE LIMITED	Director	28/03/2005	28/03/2005	-	Active	NO
2	U27107KA2008PTC046211	OSWAL SMELTERS PRIVATE LIMITED	Director	01/11/2010	01/11/2010	-	Active	NO
3	L30006TN1996PLC035973	OSWAL MINERALS LIMITED	Director	30/09/2013	01/04/2013	-	Active	NO

Name :

Mr. Bhagchand Ghisulal Jain

Designation :

Director

Address :

835/40, 15th Main, 3rd Block, Rajajinagar, Bangalore – 560010, Karnataka, India

Date of Birth/Age :

26.04.1962

Qualification :

B.E

Experience :

Experience in Metals and Metal Scraps

Date of Appointment :

30.09.2014

DIN No..:

06894213

Name :

Mr. Dinesh Kumar

Designation :

Director

Address :

61/1, New No. 14, Shanti Nivas, 5th Cross, 7th Main, Srirampuram, Bangalore – 560021, Karnataka, India

Date of Birth/Age :

03.11.1975

Qualification :

D.Pharm

Experience :

Insurance Advisor

Date of Appointment :

30.09.2014

DIN No.:

06925996

KEY EXECUTIVES

Name :	Mr. Saurabh
Designation :	Account and Finance Department Manager
Name :	Kavya R. Anegundi
Designation :	Company Secretory
Address :	Door No. 4, Madhuramha Temple, Tavrekere BTM I Stage, Bangalore – 560029, Karnataka, India
Date of Birth/Age :	01.10.1990
Date of Appointment :	05.09.2014
PAN No.:	BENPA3768K
Name :	CS Kavya R. Anegundi
Designation :	Compliance Officer
Tel. No.:	91-80-22978729
Fax No.:	91-80-23123114
Email Id.:	cs@oswalminerals.com
Name :	Mr. Subhashchand Mohanlal
Designation :	Chief Executive Officer
Address :	No. 6, 2nd Main Road, Ramachandrapuram, Bangalore – 560021, Karnataka, India
Date of Birth/Age :	23.01.1976
Qualification :	B.E
Experience :	Experience in Finance and Accounts
Date of Appointment :	05.09.2014
PAN No.:	ACVPJ3358B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Bodies corporate	7.97
Directors or relatives of Directors	71.68
Other top fifty shareholders	20.35
Total	100.00

BUSINESS DETAILS

Line of Business :	Extracting, Trading, Exporting and Importing of different types of minerals and ores.
Products :	Not Available
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Minerals and Ores
Countries :	Middle east Countries UAE
Imports :
Products :	Minerals and Ores
Countries :	Middle east Countries China
Terms :
Selling :	Cash, L/C, Cheque and Credit
Purchasing :	Cash, L/C, Cheque 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 :

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 :

Bank Name	Citi Bank
Branch	Bangalore
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
Bank Name	Axis Bank Limited
Branch	Bangalore

• The Ratnakar Bank Limited, Shahupuri,Kolhapur, Vypari Peth, Kolhapur - 416001, Maharashtra, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Short-term borrowings
Working capital loans from banks	306.226	179.693
Total	306.226	179.693

Auditors :
Name :	N N Yuvaraj and Associates Chartered Accountants
Address :	No. 23, 3^rd Floor, Park Road, Off Queens Road, Bengaluru- 560 051, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAFFN2461B
Memberships :	--
Collaborators :	--
Associates :	Oswal Smelters Private Limited Oswal Alloys Private Limited

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
8500000	Equity Shares	Rs.10/- each	Rs.85.000 Million

Issued Capital:

No. of Shares	Type	Value	Amount
7750000	Equity Shares	Rs.10/- each	Rs.77.500 Million

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7611752	Equity Shares	Rs.10/- each	Rs.76.117 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	76.117	76.117	76.024
(b) Reserves & Surplus	120.374	94.014	75.873
(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)	196.491	170.131	151.897
(3) Non-Current Liabilities
(a) long-term borrowings	384.713	547.955	18.264
(b) Deferred tax liabilities (Net)	0.000	0.024	0.158
(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)	384.713	547.979	18.422
(4) Current Liabilities
(a) Short term borrowings	439.955	271.913	196.671
(b) Trade payables	518.245	628.495	197.009
(c) Other current liabilities	29.216	31.374	14.581
(d) Short-term provisions	11.275	8.827	5.003
Total Current Liabilities (4)	998.691	940.609	413.264
TOTAL	1579.895	1658.719	583.583
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8.841	10.162	8.737
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.186	0.000	0.000
(d) Long-term Loan and Advances	12.687	11.096	8.119
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	21.714	21.258	16.856
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	168.091	403.981	51.593
(c) Trade receivables	1372.621	1205.382	407.740
(d) Cash and cash equivalents	-78.916	-67.499	0.683
(e) Short-term loans and advances	96.385	95.597	106.711
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1558.181	1637.461	566.727
TOTAL	1579.895	1658.719	583.583

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Revenue from Operations	7734.034	5929.937	3160.036
	Other Income	16.545	18.860	9.280
	TOTAL (A)	7750.579	5948.797	3169.316
Less	EXPENSES
	Cost of Materials Consumed	7476.153	5809.980	3081.820
	Employees benefits expense	16.312	14.036	6.262
	Other expenses	145.756	75.322	60.632
	TOTAL (B)	7638.221	5899.338	3148.714
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	112.358	49.459	20.602
Less	FINANCIAL EXPENSES (D)	72.214	20.118	4.140
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	40.144	29.341	16.462
Less/ Add	DEPRECIATION/ AMORTISATION (F)	2.719	2.591	0.973
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	37.425	26.750	15.489
Less	TAX (H)	11.055	8.693	5.098
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	26.370	18.057	10.391
	Earnings / (Loss) Per Share (Rs.)	3.46	2.37	1.34

Particulars	31.03.2015
Sales Turnover	8000.000

Expected Sales (2015-2016) : Rs.8500.000 Million

The above information has been parted by Mr. Saurabh (Account and Finance Department Manager)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flow from operating activity	53.658	(647.854)	(78.644)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.34	0.30	0.33
Operating Profit Margin (PBIDT/Sales)	(%)	1.45	0.83	0.65
Return on Total Assets (PBT/Total Assets}	(%)	2.37	1.61	2.65
Return on Investment (ROI) (PBT/Networth)		0.19	0.16	0.10
Debt Equity Ratio (Total Debt /Networth)		4.20	4.82	1.42
Current Ratio (Current Asset/Current Liability)		1.56	1.74	1.37

STOCK PRICES

Face Value	Rs.10/-
Market Value	Not Available Note : Subject is not listed on BSE and on NSE trade in last 30 days.

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	76.024	76.117	76.117
Reserves & Surplus	75.873	94.014	120.374
Net worth	151.897	170.131	196.491
long-term borrowings	18.264	547.955	384.713
Short term borrowings	196.671	271.913	439.955
Total borrowings	214.935	819.868	824.668
Debt/Equity ratio	1.415	4.819	4.197

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	3160.036	5929.937	7734.034
		87.654	30.424

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	3160.036	5929.937	7734.034
Profit	10.391	18.057	26.370
	0.33%	0.30%	0.34%

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)	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	Yes
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

MANAGEMENT DISCUSSION AND ANALYSIS

a) Overview, Industry Structure, Development and Outlook

Ferro alloy products are used in the production of steel as de-oxidants and alloying agents and the Ferro alloys industry acts an intermediate industry to the Iron and Steel industry. As a result the demand and prices of Ferro alloys depend on the production and consumption of steel. Looking to the worldwide global demand of steel and domestic increasing trend of steel demand, the consumption of Ferro Alloys is increasing rapidly in India and the rest of the world which is encouraging the production capacities in India during this decade and further increasing the production capacities especially in Manganese Alloys. With the growth in production and consumption of Steel in India, the Ferro alloys demand is likely to increase with increased consumption of Steel and the Company is well positioned to reap the benefits of increased demand. The Company is exploring the growth opportunities in India and abroad.

b) Business performance and Segment Reporting

During the year, the company has earned a profit of Rs. 26.369 Million as against a profit of Rs. 18.056 Million during the previous year. The company is hoping to achieve much better overall performance during the coming years. The company is engaged primarily in the business of trading in Alloys and Minerals. Hence, there are no separately reportable segments.

c) Internal Control System and its adequacy

The system of internal control has been established to provide reasonable assurance of safeguarding assets and maintenance of proper Accounting and its accuracy. The business risks and its control procedures are reviewed frequently. Systems audit is also conducted regularly to the systems with respect to Security and its Adequacy. Reports are prepared and circulated to Senior Management and action taken to strengthen controls where necessary.

UNSECURED LOAN

Unsecured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Loans and advances from directors	383.596	545.607
Other loans and advances	1.117	2.348
Short-term borrowings
Working capital loans from banks	133.729	92.220
Total	518.442	640.175

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10469083	14/02/2015 *	200,000,000.00	RBL Bank Limited	SHAHUPURI,KOLHAPUR,, VYPARI PETH, KOLHAPUR, Maharashtra - 416001, INDIA	C43712330
2	10368306	27/06/2012	120,000,000.00	CITI BANK N.A.	506-507, Level 5, Prestige Meridian 2,, No.30, M.G. Road,, Bangalore, Karnataka - 560001, INDIA	B44800753

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2014
Income Tax	2.278

FIXED ASSETS

• Furniture and fixtures
• Vehicles
• Ships vessels
• Office equipment
• Computer equipments

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.58
UK Pound	1	Rs.102.29
Euro	1	Rs.74.71

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	KAR
Report Prepared by :	SUJ

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	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.