MIRA INFORM REPORT

Report No. :	483570
Report Date :	01.01.2018

IDENTIFICATION DETAILS

Name :	HIRA ELECTRO SMELTERS LIMITED (w.e.f. 01.04.2014)
Formerly Known As :	HIRA ELECTRO SMELTERS PRIVATE LIMITED (w.e.f. 04.04.2013) RVR SMELTERS PRIVATE LIMITED
Registered Office :	Plot No. 364 to 367, APIIC Growth Centre, Bobbili – 535558, District: Vizianagaram, Andhra Pradesh
Tel. No.:	91-8944-247057
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	25.01.2007
Com. Reg. No.:	01-052498
Capital Investment / Paid-up Capital :	INR 48.000 Million
CIN No.: [Company Identification No.]	U27109AP2007PLC052498
IEC No.:	Not Divulged
GSTIN/UIN :	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AADCR5279C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Ferro Alloys. [Registered Activity]
No. of Employees :	Information denied by the management

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a wholly owned subsidiary of “Hira Power and Steels Limited” incorporated in the year 2007 having good track record. It is engaged in manufacturer of ferro alloys. For the financial year 2017, the company has achieved massive growth in its revenue as compared to its previous year along with fair profit margin during the year. Rating takes into consideration, the satisfactory financial risk profile marked by adequate networth base and strong debt protection metrics. Rating continue to derive strength from its long and established track record of its business operation backed by its improvement in the company’s operational and financial profile which in turns has supported by healthy utilization of its capacity during the year. However, these ratings gets partially offset by vulnerability of the company’s profitability and cash flows to the cyclical nature of the ferro-alloy industry. Payments are reported to be slow but correct. In view of aforesaid, the company 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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based Facilities= BB
Rating Explanation	Moderate risk of default.
Date	16.06.2017

Rating Agency Name	ICRA
Rating	Non-Fund Based Facilities= A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	16.06.2017

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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 01.01.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED BY

Name :	Mr. R. K. Naik
Designation :	Accounts Department
Contact No.:	91-771-4082600
Date :	30.12.2017

LOCATIONS

Registered Office / Factory :	Plot No. 364 to 367, APIIC Growth Centre, Bobbili – 535558, District: Vizianagaram, Andhra Pradesh, India
Tel. No.:	91-8944-247057
Fax No.:	91-8944-247008
E-Mail :	ycrao65@gmail.com
Website :	www.hpslindia.com
Head Office :	557, Urla Industrial Complex, Urla, Raipur – 492003, Chhattisgarh, India
Tel. No.:	91-771-4082500 / 4082600
Fax No.:	91-771-4082501
E-Mail :	admin@hpslindia.com

DIRECTORS

AS ON 31.03.2017

Name :

Mr. Prakash Gauri Shankar Thakar

Designation :

Director

Address :

Flat No 6, Block-1, Akash Nagar Apartment, Avanti Vihar, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

21.09.1960

Date of Appointment :

29.09.2011

DIN No.:

03599817

Name :

Mr. Prem Narayan Khandelwal

Designation :

Director

Address :

C-63, Sector-3, Devendra Nagar, Raipur – 492001, Chhattisgarh, India

Date of Appointment :

30.09.2015

DIN No.:

00438367

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U74999MH1961NPL012060	THE INDIAN FERRO ALLOY PRODUCERS ASSOCIATION	28/09/2007	-
U27100CT2012PTC000594	DINKRIT POWER AND STEELS PRIVATE LIMITED	06/11/2012	-

Name :

Mr. Rahul Agrawal

Designation :

Director

Address :

Om Kutir, Civil Lines, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

29.06.1982

Date of Appointment :

01.04.2017

DIN No.:

00495027

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U72200CT2015PTC001871	SYSTEM TWO ONLINE SOLUTIONS PRIVATE LIMITED	04/09/2015	-
U70200CT2013PTC001048	HIRABUILD DEVCON PRIVATE LIMITED	04/09/2013	-
U70109CT2013PTC001050	HIRA DEVBHOOMI PRIVATE LIMITED	04/09/2013	-
U70109CT2013PTC001047	HIRA REALBUILD PRIVATE LIMITED	04/09/2013	-
U70200CT2013PTC001049	HIRA BUILDMART PRIVATE LIMITED	04/09/2013	-
U70109CT2013PTC001046	HIRAARCADE BHUMILOK PRIVATE LIMITED	04/09/2013	-
U70200CT2013PTC000871	HIRA DEVLOK PRIVATE LIMITED	15/05/2013	-
U70200CT2013PTC000873	HIRA REALINFRA PRIVATE LIMITED	15/05/2013	-
U70102CT2013PTC000872	HIRA BHOOMICON PRIVATE LIMITED	15/05/2013	-
U24111CT2013PTC000865	HIRA CARBONICS PRIVATE LIMITED	14/05/2013	-
U10100CT2012PLC000384	NAGA COAL MINES (INDIA) LIMITED	04/06/2012	-
U65921CT1993PTC007507	REVRO REAL ESTATE AND FINANCE PVT LTD	26/09/2014	-
U45202CT1988PTC004456	SWASTIC FARMS PVT LTD	26/09/2014	-
U65921CT1993PTC007907	ALOKIK FINANCE AND INVESTMENT PVT LTD	25/09/2014	-
U27101GA1997PTC002349	EKTA METALS PRIVATE LIMITED	25/09/2014	-
U65921CT1993PTC007908	EKTAVIHAR FINANCE AND INVESTMENT PVT LTD	25/09/2014	-
U10102CT1947PTC007287	STYLOWEAR PVT LTD	26/09/2014	-
U27104CT2004PTC016354	HIRA GLOBAL ALLOYS PRIVATE LIMITED	19/09/2005	-
U65921CT1993PTC007506	EVRRO PROPERTIES AND FINANCE PVT LTD	26/09/2014	-

Name :

Mr. Ashok Kumar Dash

Designation :

Wholetime Director

Address :

H. No. L-8, Shivaji Park, Opposite Prince Dhaba Vidhan Sabha Road, Saddu, Raipur – 492001, Chhattisgarh, India

Date of Appointment :

29.09.2017

DIN No.:

00146362

Name :

Mr. Subhash Mahandru

Designation :

Director

Address :

HIG B- 2, M.P. Housing Board, Raipur Naka, Durg – 491001, Chhattisgarh, India

Date of Appointment :

29.09.2017

DIN No.:

01355122

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U24117CT1984PLC002512	HIRA POWER AND STEELS LIMITED	21/06/2004	-

KEY EXECUTIVES

Name :	Mr. R. K. Naik
Designation :	Accounts Department

MAJOR SHAREHOLDERS

AS ON 31.03.2017

Names of Shareholders	No. of Shares
Hira Power and Steels Limited, India	4799400
Rahul Agrawal (Nominee of Hira Power and Steels Limited)	100
Om Prakash Agrawal (Nominee of Hira Power and Steels Limited)	100
Raj Devi Agrawal (Nominee of Hira Power and Steels Limited)	100
Vikas Agrawal (Nominee of Hira Power and Steels Limited)	100
Nikita Agrawal (Nominee of Hira Power and Steels Limited)	100
Shilpa Agrawal (Nominee of Hira Power and Steels Limited)	100
Total	4800000

Equity Share Break up (Percentage of Total Equity)

AS ON 29.09.2017

Category	Percentage
Promoters [Individual/Hindu Undivided Family (Indian)]	0.01
Promoters [Bodies corporate]	99.99
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Ferro Alloys. [Registered Activity]

Products / Services :

Name and Description of main products / services	ITC Code
Ferro Alloys	72021900

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS – (NOT AVAILABLE)

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Information denied by the management

Bankers :

Banker Name :	ICICI Bank Limited
Branch :	Landmark Race Cource Circle, Alkapuri, Vadodara – 390007, Gujarat, India
Person Name (With Designation) :	--
Contact Number :	--
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	--
Remark :	--

Facilities :

SECURED LOANS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Rupee term loans from banks	48.612	36.932
SHORT TERM BORROWINGS
Working capital loans from banks	1.814	68.158
Loans and advances from related parties	20.974	48.497
Other loans and advances	72.571	0.000
Total	143.971	153.587

Auditors :
Name :	Sunil and Sanjay Company Chartered Accountants
Address :	1-7-264/2016, 2^nd Floor, Emerald House, S.D. Road, Secundrabad – 500003, Telangana, India
PAN No.:	AAIFS8895H
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Hira Power and Steels Limited [CIN No.: U24117CT1984PLC002512]

CAPITAL STRUCTURE

AS ON 30.09.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	INR 10/- each	INR 60.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4800000	Equity Shares	INR 10/- each	INR 48.000 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	48.000	48.000	48.000
(b) Reserves & Surplus	85.253	17.795	4.319
(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)	133.253	65.795	52.319
(3) Non-Current Liabilities
(a) Long-term borrowings	217.635	128.677	132.447
(b) Deferred tax liabilities (Net)	7.916	0.000	0.000
(c) Other long term liabilities	8.504	0.000	0.000
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	234.055	128.677	132.447
(4) Current Liabilities
(a) Short term borrowings	95.359	116.655	101.742
(b) Trade payables	140.726	23.831	2.556
(c) Other current liabilities	86.984	42.768	29.222
(d) Short-term provisions	31.693	15.466	12.306
Total Current Liabilities (4)	354.762	198.720	145.826
TOTAL	722.070	393.192	330.592
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	164.654	60.935	76.965
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	5.677	101.395	42.614
(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)	0.000	3.138	0.030
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	42.535	19.306	19.303
Total Non-Current Assets	212.866	184.774	138.912
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	150.964	131.804	113.515
(c) Trade receivables	238.149	4.690	31.915
(d) Cash and cash equivalents	17.444	16.056	2.088
(e) Short-term loans and advances	102.647	55.868	44.162
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	509.204	208.418	191.680
TOTAL	722.070	393.192	330.592

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2017	31.03.2016	31.03.2015
	SALES
			Income	1658.878	762.648	791.796
			Other Income	18.147	9.554	7.682
			TOTAL	1677.025	772.202	799.478
Less	EXPENSES
			Cost of Materials Consumed	1064.487	406.460	453.817
			Purchase of Stock-in-trade	47.400	13.680	0.000
			Changes in Inventories of finished goods, work-in-progress and stock-in-trade	14.509	15.038	45.991
			Employee Benefits Expenses	38.475	28.001	26.221
			CSR expenditure	0.060	0.000	0.000
			Other expenses	344.740	257.714	213.993
			Exceptional items	0.000	(11.018)	12.673
			TOTAL	1509.671	709.875	752.695
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			167.354	62.327	46.783
Less	FINANCIAL EXPENSES			41.524	24.141	33.122
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION			125.830	38.186	13.661
Less	DEPRECIATION/ AMORTISATION			35.014	18.361	29.734
	PROFIT/(LOSS) BEFORE TAX			90.816	19.825	(16.073)
Less	TAX			23.358	6.349	(5.997)
	PROFIT/(LOSS) AFTER TAX			67.458	13.476	(10.076)
	IMPORTS
		CIF value of imports		62.413	97.610	102.735
	TOTAL IMPORTS			62.413	97.610	102.735
	Earnings / (Loss) Per Share (INR)			14.05	2.81	(2.10)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	NA	NA	0.081
Cash generated from operations	NA	NA	(17.744)
Net cash flow from (used in) operations	(17.063)	(96.917)	(30.417)

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	52.40	2.24	14.71
Account Receivables Turnover (Income / Sundry Debtors)	6.97	162.61	24.81
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	46.20	20.70	2.06
Inventory Turnover (Operating Income / Inventories)	1.11	0.47	0.41
Asset Turnover (Operating Income / Net Fixed Assets)	0.98	0.38	0.39

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.79	0.83	0.84
Debt Equity Ratio (Total Liability / Networth)	2.35	3.73	4.48
Current Liabilities to Networth (Current Liabilities / Net Worth)	2.66	3.02	2.79
Fixed Assets to Networth (Net Fixed Assets / Networth)	1.28	2.47	2.29
Interest Coverage Ratio (PBIT / Financial Charges)	4.03	2.58	1.41

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
PAT to Sales ((PAT / Sales) * 100)	%	4.07	1.77	(1.27)
Return on Total Assets ((PAT / Total Assets) * 100)	%	9.34	3.43	(3.05)
Return on Investment (ROI) ((PAT / Networth) * 100)	%	50.62	20.48	(19.26)

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.44	1.05	1.31
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.01	0.39	0.54
G-Score Ratio Financial (Networth / Total Assets)	0.18	0.17	0.16
G-Score Ratio Debt (Debts / Equity Capital)	6.52	5.11	4.88
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.44	1.05	1.31

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	48.000	48.000	48.000
Reserves & Surplus	4.319	17.795	85.253
Net worth	52.319	65.795	133.253
Long Term borrowings	132.447	128.677	217.635
Short Term borrowings	101.742	116.655	95.359
Total borrowings	234.189	245.332	312.994
Debt/Equity ratio	4.476	3.729	2.349

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	791.796	762.648	1658.878
		(3.681)	117.516

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	791.796	762.648	1658.878
Profit/(Loss)	(10.076)	13.476	67.458
	(1.27%)	1.77%	4.07%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	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: Registered office of the company has been shifted from Plot No. 39 and 40, S.V.C.I.V., Bala Nagar, Hyderabad – 500037, Telangana, India to present address w.e.f. 20.01.2010

REVIEW OF PERFORMANCE:

During the financial year 2016-17, the company has made Total Turnover of INR 1677.025 million as against INR 772.202 million in the previous year. The company incurred a Profit before tax of INR 90.816 million as against Loss of INR 8.807 million in the previous year. The Net Profit after tax was INR 67.458 million as against net loss of INR 13.476 million in the previous year.

UNSECURED LOANS:

PARTICULARS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Loans and advances from related parties	169.023	91.745
Total	169.023	91.745

INDEX OF CHARGES:

S No	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	C59469130	10581195	ICICI BANK LIMITED	26/06/2015	-	-	100000000.0	LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGJ390007IN
2	C59470534	10521738	ICICI BANK LIMITED	01/08/2014	26/06/2015	-	30000000.0	LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGJ390007IN
3	C59479378	10521735	ICICI BANK LIMITED	14/07/2014	26/06/2015	-	160000000.0	LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGJ390007IN
4	C49102262	10218799	STATE BANK OF INDIA	26/03/2010	31/08/2012	04/04/2015	241800000.0	OVERSEAS BRANCH9-1-57, GNT ROADVISAKHAPATNAMAP530013IN
5	A84454321	10090851	ANDHRA BANK	18/02/2008	23/03/2009	19/04/2010	32300000.0	SULTAN BAZAR BRANCHKOTIHYDERABADAP500195IN

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

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	INR
US Dollar	1	INR 63.93
UK Pound	1	INR 86.07
Euro	1	INR 76.39

INFORMATION DETAILS

Information Gathered by :	PNM
Analysis Done by :	NIS
Report Prepared by :	NKT

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.