MIRA INFORM REPORT

Report No. :	515256
Report Date :	27.06.2018

IDENTIFICATION DETAILS

Name :	K.K.P. FINE LINEN PRIVATE LIMITED (w.e.f. 06.11.2007)
Formerly Known As :	K K P RICE MILLS PRIVATE LIMITED
Registered Office :	No. 88, Salem Road, Namakkal – 637001, Tamilnadu
Tel. No.:	91-4286-276066
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	01.03.1989
CIN No.: [Company Identification No.]	U15311TZ1989PTC002371
Capital Investment / Paid-up Capital :	INR 31.140 Million
PAN No.: [Permanent Account No.]	AADCK1989N
GSTN : [Goods & Service Tax Registration No.]	33AADCK1989N1Z1
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Fabric Cloth. [Registered Activity]
No. of Employees :	30 (Approximately) (At site visit)

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

Maximum Credit Limit :	USD 400000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	K.K.P Fine Linen Private Limited is a manufacturer of fabric cloth. The company was incorporated in the year 1989 and is based in Tamilnadu, India. It is an established company having satisfactory track record. For the financial year ended 2017, the company has witnessed a growth in its revenue and has achieved fair profit margin at 1.93% (approx.). The company possesses sound financial profile marked by healthy net worth position along with average debt level and favourable gap between trade payables to its trade receivables. Further, banker (Axis Bank) has also given positive feedback regarding company’s banking transaction. Trade relations are reported as fair. Business is active. Payment terms are seems to be usually correct and as per commitment. In view of the aforesaid, the company can be considered normal business dealings at usual trade terms and conditions. NOTE: Site visit was conducted at the address which you have provided. Our executive has successfully traced the company at the given address (Given address is a registered address of the company). At the premises, our executive met Mr. Ganesh (Company Staff) who confirmed that company exists at the given address. As per our executive observation, it is a one storey building which wholly belongs to the company. Locality of the premises appears to be commercial, area seems to be upmarket and area of the premises is 7000 (sq. ft.). Name board of the company was sighted at the given premises. Landmark of the area is opposite “S.S Tower” and 30 (approx.) employees were sighted at the premises. Our executive also had a word with the neighbours of the company i.e., “Ranga Agencies” and “The Atlas Tharapaikal” who confirmed that company exists at the given address.

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 (31.12.2017)	Current Rating (01.04.2018)
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	BRICK WORKS
Rating	Long Term= BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	24.03.2017

Rating Agency Name	BRICK WORKS
Rating	Short Term Rating= A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	24.03.2017

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 31-03-2018.

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 27.06.2018

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 :	Ms. Shanti
Designation :	Office Executive
Contact No.:	91-9843410066
Date :	26.06.2018

LOCATIONS

Registered Office/ Factory :	No. 88, Salem Road, Namakkal – 637001, Tamilnadu, India
Tel. No.:	91-4286-276066
Mobile No.:	91-9843410066 (Ms. Shanti)
Fax No.:	Not Available
E-Mail :	yarns@kkpindia.com
Area :	7000 Sq. ft. (At site visit)
Locality :	Commercial (At site visit)

DIRECTORS

AS ON 31.03.2018

Name :

Mr. Nallathambi Sathesh Kumar

Designation :

Managing Director

Address :

109/ B/2, Salem Road, Namakkal – 637001, Tamilnadu, India

Date of Birth/Age :

28.02.1979

Date of Appointment :

21.11.2007

DIN No.:

01738478

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U15142TZ1983PTC001344	K K P WEAVING AND PROCESSING MILLS PRIVATE LIMITED	10/09/2012	-
U65999TZ1988PTC002284	K K P FABRICS PRIVATE LIMITED	30/09/2014	-
U17115TZ1984PTC003986	K K P TEXTILES PRIVATE LIMITED	30/09/2002	-
U17111TZ1993PTC004731	K K P SPINNING MILLS PRIVATE LIMITED	30/09/2002	-
U65921TZ1994PTC005334	K K P GARMENTS PRIVATE LIMITED	30/09/2011	-
U01712TZ2005PLC012329	SIMA TEXTILE PROCESSING CENTRE LIMITED	17/09/2012	-
U17111TZ2009PTC015181	K K P HI TECH WEAVING INDIA PRIVATE LIMITED	08/09/2012	-

Name :

Nallathambi Bakkialakshmi

Designation :

Director

Address :

109-B, Salem Road, Namakkal – 637001, Tamilnadu, India

Date of Birth/Age :

17.12.1956

Date of Appointment :

21.07.1989

DIN No.:

01738013

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U15142TZ1983PTC001344	K K P WEAVING AND PROCESSING MILLS PRIVATE LIMITED	19/02/1993	-
U17115TZ1984PTC003986	K K P TEXTILES PRIVATE LIMITED	21/03/1985	-
U17111TZ1993PTC004731	K K P SPINNING MILLS PRIVATE LIMITED	10/12/1993	-

Name :

Mr. Nallathambi Subash Kumar

Designation :

Director

Address :

109-B/2, Salem Road, Namakkal – 637001, Tamilnadu, India

Date of Birth/Age :

10.02.1981

Date of Appointment :

21.11.2007

DIN No.:

01925829

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U15142TZ1983PTC001344	K K P WEAVING AND PROCESSING MILLS PRIVATE LIMITED	10/09/2012	-
U65999TZ1988PTC002284	K K P FABRICS PRIVATE LIMITED	30/09/2014	-
U17115TZ1984PTC003986	K K P TEXTILES PRIVATE LIMITED	10/09/2012	-
U17111TZ1993PTC004731	K K P SPINNING MILLS PRIVATE LIMITED	10/09/2012	-
U65921TZ1994PTC005334	K K P GARMENTS PRIVATE LIMITED	30/09/2011	-
U17111TZ2009PTC015181	K K P HI TECH WEAVING INDIA PRIVATE LIMITED	24/04/2009	-

KEY EXECUTIVES

Name :	Ms. Shanti
Designation :	Office Executive

MAJOR SHAREHOLDERS

AS ON 31.03.2017

Names of Shareholders	No. of Shares
Bakkialakshmi	24200
Marayee	10500
Satheshkumar	70600
Subashkumar	14100
Nallathambi	29000
KKP Weaving and Processing Mills Private Limited	14000
KKP Garments Private Limited	24000
KKP Textiles Private Limited	50000
KKP Spinning Mills Private Limited	60000
N Chinna Goundar	15000
Total	311400

Equity Share Break up (Percentage of Total Equity)

AS ON 29.09.2017

Category	Percentage
Promoters [Individual/Hindu Undivided Family (Indian)]	34.97
Public/Other than promoters [Individual/Hindu Undivided Family (Indian)]	17.50
Public/Other than promoters [Body corporate]	47.53
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Fabric Cloth. [Registered Activity]

Products / Services :

Name and Description of main products / services	ITC Code
Home textiles, fabrics, cloth, etc.	61082100

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS – (NOT AVAILABLE)

GENERAL INFORMATION

Suppliers [As provided by the client] :

Reference :	Prime Products Private Limited
Name of the Person :	--
Contact No.:	91-421-2478813
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark :	Denied to provide feedback.

· Kwality Yarns

· Wari Bhagvab Processing

· Navina Packing Mills

Customers [As provided by the client] :

· Vission Support

· Spring Global

· Frette North

· America Inc.

· Frette SRL.

· CHF Industries Inc.

· Garnier Thiebaut Inc.

· American Tectile Company

No. of Employees :

30 (Approximately) (At site visit)

Bankers :

Banker Name :	Axis Bank Limited
Branch :	No. 41/2, First and Second Floor, Ramakrishna Road, Salem – 636007, Tamilnadu, India
Person Name (With Designation) :	Mr. K. Kumar (Relationship Manager)
Contact Number :	91-9894335175
Name of Account Holder :	Mr. Nallathambi
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) :	--
Account Operation :	Satisfactory
Remark :	Mr. K. Kumar gave us positive response about subject company they are satisfied with their banking transaction.

Banker Name :	IDBI Bank Limited
Branch :	Specialized Corporate Branch3, West Marret Street, Madurai – 625001, Tamilnadu, India
Person Name (With Designation) :	--
Contact Number :	91-4524-392211
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 :	Not Responding

Facilities :

SECURED LOANS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Rupee term loans from banks	4.385	0.000
Other loans and advances	3.651	4.903
SHORT TERM BORROWINGS
Working capital loans from banks	323.176	275.187
Total	331.212	280.090

Auditors :
Name :	Ravi Sankara and Associates Chartered Accountants
Address :	No.72C, 1st Floor, Sri Velavan Complex, Opposite Ayyappan Temple, Mohanur Road, Namakkal – 637001, Tamilnadu, India
PAN No.:	AITPR0895B
Memberships :	Not Available
Collaborators :	Not Available
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· KKP Textiles Private Limited · KKP Spinning Mills Private Limited · KKP Weaving and Processing Mills Private Limited · KKP Hitech Weaving India Private Limited · KKP Garments Private Limited
Other related party :	· KKP Rice Mill

CAPITAL STRUCTURE

AS ON 29.09.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	INR 100/- each	INR 35.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
311400	Equity Shares	INR 100/- each	INR 31.140 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	31.140	31.140	31.140
(b) Reserves & Surplus	108.292	76.170	48.827
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	5.500	0.000
Total Shareholders’ Funds (1) + (2)	139.432	112.810	79.967
(3) Non-Current Liabilities
(a) Long-term borrowings	200.964	65.693	26.737
(b) Deferred tax liabilities (Net)	1.214	1.359	1.337
(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)	202.178	67.052	28.074
(4) Current Liabilities
(a) Short term borrowings	323.176	275.187	225.649
(b) Trade payables	118.012	70.983	54.391
(c) Other current liabilities	29.012	16.077	28.828
(d) Short-term provisions	20.280	16.345	8.663
Total Current Liabilities (4)	490.480	378.592	317.531
TOTAL	832.090	558.454	425.572
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	80.794	34.512	26.056
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	48.884	1.692	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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.153	49.471	35.881
(e) Other Non-current assets	0.191	0.191	0.191
Total Non-Current Assets	134.022	85.866	62.128
(2) Current assets
(a) Current investments	0.172	0.173	0.000
(b) Inventories	459.503	339.453	207.337
(c) Trade receivables	175.498	80.229	84.635
(d) Cash and cash equivalents	3.257	1.130	1.284
(e) Short-term loans and advances	46.386	36.205	36.329
(f) Other current assets	13.252	15.398	33.859
Total Current Assets	698.068	472.588	363.444
TOTAL	832.090	558.454	425.572

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Total Revenue from operations	1682.442	1349.813	955.064
	Other Income	148.989	101.275	67.703
	TOTAL	1831.431	1451.088	1022.767
Less	EXPENSES
	Cost of Materials Consumed	1124.349	830.944	521.903
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(80.209)	(71.485)	41.796
	Employee benefit expense	75.482	70.796	53.917
	Expenditure on production, transportation and Other expenditure pertaining to exploration and production activities	463.361	387.280	278.047
	Other expenses	158.391	155.317	83.177
	TOTAL	1741.374	1372.852	978.840
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	90.057	78.236	43.927
Less	FINANCIAL EXPENSES	28.110	29.594	18.101
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	61.947	48.642	25.826
Less	DEPRECIATION/ AMORTISATION	11.325	6.605	7.971
	PROFIT/ (LOSS) BEFORE TAX	50.622	42.037	17.855
Less	TAX	18.089	14.612	5.901
	PROFIT/ (LOSS) AFTER TAX	32.533	27.425	11.954
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	1417.982	1210.385	789.113
	TOTAL EARNINGS	1417.982	1210.385	789.113
	IMPORTS
	Components and spare parts	0.093	0.187	0.563
	Capital Goods	2.108	2.989	2.907
	TOTAL IMPORTS	2.201	3.176	3.470
	Earnings / (Loss) Per Share (INR)	104.00	88.00	38.00

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	2.680	2.149	2.256
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	(91.349)	(45.050)	(35.265)
Net cash flows from (used in) operating activities	(106.199)	(57.892)	(42.495)

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	38.07	21.69	32.35
Account Receivables Turnover (Income / Sundry Debtors)	9.59	16.82	11.28
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	38.31	31.18	38.04
Inventory Turnover (Operating Income / Inventories)	0.20	0.23	0.21
Asset Turnover (Operating Income / Net Fixed Assets)	0.69	2.16	1.69

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.83	0.80	0.81
Debt Equity Ratio (Total Liability / Networth)	3.78	3.04	3.18
Current Liabilities to Networth (Current Liabilities / Net Worth)	3.52	3.36	3.97
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.93	0.32	0.33
Interest Coverage Ratio (PBIT / Financial Charges)	3.20	2.64	2.43

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
PAT to Sales ((PAT / Sales) * 100)	%	1.93	2.03	1.25
Return on Total Assets ((PAT / Total Assets) * 100)	%	3.91	4.91	2.81
Return on Investment (ROI) ((PAT / Networth) * 100)	%	23.33	24.31	14.95

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.42	1.25	1.14
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.49	0.35	0.49
G-Score Ratio Financial (Networth / Total Assets)	0.17	0.20	0.19
G-Score Ratio Debt (Debts / Equity Capital)	16.92	11.02	8.18
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.42	1.25	1.14

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	31.140	31.140	31.140
Reserves & Surplus	48.827	76.170	108.292
Share Application money pending allotment	0.000	5.500	0.000
Net worth	79.967	112.810	139.432
Long-term borrowings	26.737	65.693	200.964
Short term borrowings	225.649	275.187	323.176
Current maturities of long-term debts	2.256	2.149	2.680
Total borrowings	254.642	343.029	526.820
Debt/Equity ratio	3.184	3.041	3.778

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	955.064	1349.813	1682.442
		41.332	24.643

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	955.064	1349.813	1682.442
Profit/ (Loss)	11.954	27.425	32.533
	1.25 %	2.03 %	1.93 %

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	Yes
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	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	Yes
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

Brief description of the company's working during the year/state of company's affair:

The company achieved a turnover which increased to INR 1682.442 million in FY 2016-17 from INR 1349.813 million in FY 2015-16 and incurred Net profit of INR 32.533 million, which is increased as compared from previous year.

UNSECURED LOANS:

PARTICULARS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Intercorporate deposits	192.928	60.790
Total	192.928	60.790

INDEX OF CHARGES:

S No	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G53706248	100028229	IDBI Bank Limited	11/02/2016	21/09/2017	-	200000000.0	Specialized Corporate Branch3, West Marret Street Madurai 625001, Tamilnadu, India
2	G75665240	10428842	Axis Bank Limited	09/05/2013	14/12/2017	-	680000000.0	No. 41/2, First & Second Floor Ramakrishna Road Salem 636007, Tamilnadu, India
3	B90967217	10219483	Punjab National Bank	30/04/2010	06/09/2012	13/11/2013	164107000.0	Namakkal Branch 88 Salem Road Namakkal 637001, Tamilnadu, India
4	A90096611	10100684	State Bank of India	17/03/2008	-	21/07/2010	102647000.0	2, Sankaran Road Namakkal 637001, Tamilnadu, India

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

OBSERVATION POINTS

Name of Company :	K.K.P. FINE LINEN PRIVATE LIMITED (w.e.f. 06.11.2007)
Address :	88, Salem Road, Namakkal – 637001, Tamilnadu, India
Mobile No.:	91-9843410066
Person to whom we met:	Mr. Ganesh (Company Staff)
Name Board :	Sighted
Location:	Easy
Landmark (If Any):	S.S Tower
Total Floors of the building:	Ground + 1 Floor
Subject situated on:	Whole premises belongs to the subject
Locality:	Commercial
Area of premises :	7000 sq. ft. (Approximately)
Area :	Upmarket
No. of employees seen at premises:	30 (Approximately)
Visibility of Items :	· Telephone · Fax Machine · Computers · Air Conditioners · Office Equipment
Furniture Items sighted :	Yes
Neighbour’s Interview :	Name of the company: Ranga Agencies Contact Person Name: Mr. Kirubakaran Name of the company: The Atlas Tharapaikal Contact Person Name: Mr. Jagan
Neighbour’s Overview:	Existence confirmed
Proof of visit:	Photograph

PICTURES

NEIGHBOURS

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 records 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 68.17
UK Pound	1	INR 90.47
Euro	1	INR 79.74

INFORMATION DETAILS

Information Gathered by :	SHW
Analysis Done by :	DIV
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.