MIRA INFORM REPORT

Report No. :	509201
Report Date :	12.05.2018

IDENTIFICATION DETAILS

Name :	MARATHON ELECTRIC MOTORS (INDIA) LIMITED (w.e.f. 17.12.2007)
Formerly Known As :	ALSTOM INDUSTRIAL PRODUCTS LIMITED
Registered Office :	58, Taratala Road, Kolkata – 700024, West Bengal
Tel. No.:	91-33-24695560/ 61/ 65
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	06.04.2004
Com. Reg. No.:	21-098278
Capital Investment / Paid-up Capital :	INR 39.864 Million
CIN No.: [Company Identification No.]	U29120WB2004PLC098278
IEC No.: [Import-Export Code No.]	0206013582
GSTN : [Goods & Service Tax Registration No.]	19AAFCA5012Q1ZF
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAFCA5012Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in manufacturing of electric motors (high tension and low tension), industrial fans and axial flow fans. (Registered Activity)
No. of Employees :	Information declined 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 :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Marathon Electric Motors (India) limited (MEMIL) manufactures electric motors and industrial fans. It is an established company having fine track record . Marathon Electric Motors (India) Limited (MEMIL) is a wholly owned subsidiary of Regal Beloit Finance BV, Netherlands. For the financial year ended 2017, revenue of the company has declined which has further resulted into loss during the year under a review. However, the company possesses sound financial profile marked by healthy net worth base along with debt free balance sheet and favorable gap between trade payables to its trade receivables. The company also derives strength from its strong holding entity and its experienced management team. Trade relations are reported as fair. Business is active. Payments terms are reported to be regular and as per commitment. In view of strong holding support and sound financial base, 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 (30.09.2017)	Current Rating (31.12.2017)
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	CRSIL
Rating	Long term rating : BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	31.10.2017

Rating Agency Name	CRSIL
Rating	Short term rating : A2
Rating Explanation	Strong degree of safety and low credit risk
Date	31.10.2017

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 12.05.2018

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 :	Mrs. Hiba Khan
Designation :	Export Sales Manager
Contact No.:	91-33-24695561

LOCATIONS

Registered Office/ Factory 1 :	58, Taratala Road, Kolkata – 700024, West Bengal, India
Tel. No.:	91-33-24695561/ 65/ 44030400
Fax No.:	91-33-24698530/ 5369
E-Mail :	marathonelectric.india@marathonelectric.com samit.sinha@marathonelectric.com
Website :	http://www.marathonelectric.in
Factory 2 :	AEI Works, 1 Taratala Road, Kolkata – 700024, West Bengal, India
Tel. No.:	91-33-44030501
Branch Office 1 :	301, Sigma Legancy, IIM Road, Near Panjra Pole Cross Road, Ahmedabad-380015, Gujarat, India
Branch Office 2 :	Door No.9, Flat No.7, 1st Floor, Thiru. Vi. Ka. Road, Royapettah, (Opposite Sathyam Theatre), Chennai – 600014, Tamilnadu, India
Branch Offices :	Also Located At: · Bangalore · Bhubaneswar · Chandigarh · Jamshedpur · Mumbai · Nagpur · New Delhi · Pune · Raipur · Secunderabad

DIRECTORS

As on 31.03.2017

Name :

Mr. Sheel Kapoor

Designation :

Director

Address :

Flat – 86, Plot – 102, Jai Apartments, Patparganj, New Delhi – 110092, India

Date of Birth/Age :

02.08.1969

Date of Appointment :

30.12.2008

DIN No.:

00063765

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U31909HR1994FTC032429	MARATHON ELECTRIC INDIA PRIVATE LIMITED	29/09/2006	-
U40101DL1997PLC088255	RBC MOTORS INDIA LIMITED	02/11/2007	-

Name :

Mr. Scott Douglas Brown

Designation :

Director

Address :

9 Coyote Ct, Madison, Wisconsin, 53717, United States of America

Date of Birth/Age :

24.07.1959

Date of Appointment :

16.02.2009

DIN No.:

02505852

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U31909HR1994FTC032429	MARATHON ELECTRIC INDIA PRIVATE LIMITED	19/09/2009	-

Name :

Mr. Debajit Sen

Designation :

Director

Address :

146/8C, Lake Gardens, Kolkata – 700045, West Bengal, India

Date of Birth/Age :

11.03.1962

Date of Appointment :

26.12.2014

PAN No.:

ALAPS6651C

DIN No.:

07049886

Name :

Mr. Satya Venkata Paleswara Rao Duvvuri

Designation :

Additional Director

Address :

142b, Raja S C Mullick Road, Block - 4, Jadavpur, Kolkata-700032, West Bengal, India

Date of Appointment :

24.02.2017

PAN No.:

AFSPD7842L

DIN No.:

07729138

KEY EXECUTIVES

Name :	Mrs. Hiba Khan
Designation :	Export Sales Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2017

Names of Shareholders	No. of Shares
Regal Beloit Finance BV, Netherlands	3986389
Dutch Horizon I LLC	1
Dutch Horizon II LLC	2
Dutch Horizon III LLC	2
Dutch Horizon IV LLC	2
Dutch Horizon V LLC	3
Dutch Horizon VI LLC	3
Total	3986402

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2016

Category	Percentage
Promoters (Body corporate)	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing of electric motors (high tension and low tension), industrial fans and axial flow fans. (Registered Activity)

Products :

NIC Code No.	Product Description
8501	Electric Motors excluding generating sets

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 declined by the management

Bankers :

Bank Name	Not Divulged
Branch	--
Person Name (With Designation)	--
Contact Number	--
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Bengal Intelligent Park, Building Alpha, 1st Floor, Block-EP and GP , Sector –V, Kolkata- 7000091, West Bengal, India
Income-tax PAN of auditor or auditor's firm :	AADFD5357J
Memberships :	--
Collaborators :	--
Holding company :	Regal Beloit Finance BV, the Netherlands (RBF)
Ultimate Holding company :	Regal Beloit Corporation, USA (RBC)
Fellow Subsidiary companies :	CEMP Srl, Italy CMG Electric Motors (Asia Pacific) Pte. Limited, Singapore CMG Electric Motors (NZ) Limited, New Zealand CMG Electric Motors SA(PTY) Limited, South Africa Fort Wayne., USA Marathon Electric Far East Pte. Ltd, Singapore Marathon Electric India Private Limited, India Regal Beloit America Inc. (formerly RBC Manufacturing Corporation, USA) Regal Beloit (Israel) Limited, Israel Regal Beloit Australia PTY Limited, Australia Regal Beloit B.V., the Netherlands Regal Beloit FZE, UAE Regal Beloit South Africa PTY. Limited, South Africa Regal Beloit UK Limited, UK Regal Beloit (Wuxi) Company Limited, China Rotor B.V., the Netherlands Unico Inc., USA Wuxi Hwada Motor Company Limited, China

CAPITAL STRUCTURE

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	INR 10/- each	INR 200.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3986402	Equity Shares	INR 10/- each	INR 39.864 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	39.864	39.864	39.864
(b) Reserves and Surplus	1643.923	1737.278	1662.604
(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)	1683.787	1777.142	1702.468
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long-term liabilities	0.000	0.000	0.000
(d) long-term provisions	56.266	47.621	44.316
Total Non-current Liabilities (3)	56.266	47.621	44.316
(4) Current Liabilities
(a) Short-term borrowings	0.000	0.000	0.000
(b) Trade payables	568.305	554.241	523.459
(c) Other current liabilities	56.525	93.130	87.581
(d) Short-term provisions	55.713	54.923	59.901
Total Current Liabilities (4)	680.543	702.294	670.941
TOTAL	2420.596	2527.057	2417.725
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	296.226	309.508	330.752
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Tangible assets capital work-in-progress	13.842	6.634	2.770
(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)	124.319	138.427	95.879
(d) Long-term loans and advances	86.966	86.587	102.598
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	521.353	541.156	531.999
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	594.698	542.705	626.628
(c) Trade receivables	998.508	1242.952	968.225
(d) Cash and bank balances	252.601	164.425	230.432
(e) Short-term loans and advances	52.850	35.369	59.444
(f) Other current assets	0.586	0.450	0.997
Total Current Assets	1899.243	1985.901	1885.726
TOTAL	2420.596	2527.057	2417.725

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Revenue from operations	1952.887	2340.359	2124.197
	Other Income	27.431	32.971	63.561
	TOTAL	1980.318	2373.330	2187.758
Less	EXPENSES
	Cost of Materials Consumed	1427.898	1562.175	1469.202
	Purchases of Stock-in-Trade	23.723	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(65.110)	76.973	(7.327)
	Employee benefit expense	310.437	322.118	337.424
	Other expenses	324.017	343.093	368.699
	TOTAL	2020.965	2304.359	2167.998
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(40.647)	68.971	19.760
Less	FINANCIAL EXPENSES	4.871	4.202	6.215
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(45.518)	64.769	13.545
Less/ Add	DEPRECIATION/ AMORTISATION	33.729	32.643	31.954
	PROFIT/ (LOSS) BEFORE TAX	(79.247)	32.126	(18.409)
Less	TAX	14.108	(42.548)	14.207
	PROFIT/ (LOSS) AFTER TAX	(93.355)	74.674	(32.616)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	57.419	46.142	69.516
	TOTAL EARNINGS	57.419	46.142	69.516
	IMPORTS
	Raw Materials	58.067	210.281	188.213
	Capital Goods	2.128	0.000	0.000
	TOTAL IMPORTS	60.195	210.281	188.213
	Earnings / (Loss) Per Share (INR)	(23.42)	18.73	(8.18)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	0.000	0.000	0.000
Net cash flows from (used in) operations	102.368	(77.423)	15.894
Net cash flows from (used in) operating activities	103.251	(61.182)	13.991

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	186.62	193.85	166.37
Account Receivables Turnover (Income / Sundry Debtors)	1.96	1.88	2.19
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	142.90	129.50	130.05
Inventory Turnover (Operating Income / Inventories)	(0.07)	0.13	0.03
Asset Turnover (Operating Income / Net Fixed Assets)	(0.13)	0.22	0.06

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.28	0.28	0.28
Debt Equity Ratio (Total Liability / Networth)	0.00	0.00	0.00
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.40	0.40	0.39
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.18	0.18	0.20
Interest Coverage Ratio (PBIT / Financial Charges)	(8.34)	16.41	3.18

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	(4.78)	3.19	(1.54)
Return on Total Assets ((PAT / Total Assets) * 100)	%	(3.86)	2.95	(1.35)
Return on Investment (ROI) ((PAT / Networth) * 100)	%	(5.54)	4.20	(1.92)

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	2.79	2.83	2.81
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.92	2.05	1.88
G-Score Ratio Financial (Networth / Total Assets)	0.70	0.70	0.70
G-Score Ratio Debt (Debts / Equity Capital)	0.00	0.00	0.00
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	2.79	2.83	2.81

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	39.864	39.864	39.864
Reserves & Surplus	1662.604	1737.278	1643.923
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1702.468	1777.142	1683.787
Long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Current maturities of long-term debts	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

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	2124.197	2340.359	1952.887
		10.176	(16.556)

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	2124.197	2340.359	1952.887
Profit/ (Loss)	(32.616)	74.674	(93.355)
	(1.54%)	3.19%	(4.78%)

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)	No
16]	No. of employees	No
17]	Details of sister concerns	Yes
18]	Major suppliers	No
19]	Major customers	No
20]	Banking Details	No
21]	Banking facility details	No
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:

The Registered office of the company has been shifted from D-2, Gillander House, 8, N. S. Road, Kolkata-700001, West Bengal, India to the present address w.e.f. 18.10.2006

CORPORATE INFORMATION

The Company is engaged in manufacturing of electric motors (high tension and low tension), industrial fans and axial flow fans.

OPERATIONS REVIEW AND BUSINESS PERFORMANCE

Financial Year 2016 - 17, was very challenging for the Manufacturing and Electrical Industries and the revenue was lower compare to the previous year due to delay in finalization of major projects.. Though India's GDP growth for the year 2016-17 was 7.1%, the growth in Manufacturing and Infrastructure Industries are not adequate to create the new market opportunities and witnessed lower Capex demand. Hence Capital Goods sector where your Company operates witnessed a de-growth. The power project sector, where Marathon had a very large share of business, continued to face below expectation during this year. Postponement of many projects in power and infrastructural sectors where we supply our products either directly or through OEMs, hurt our revenues badly. In case of such orders, either manufacturing clearances were held up or after the motors were manufactured, dispatch clearances were not available. Also, there were substantial defaults by customers in making payments because of the liquidity problems in the market. Though, the company developed many new customers and dealers, the orders were in smaller quantities because of the overall market shrinkage and bulk orders from large project companies were missing. Revenue for last two Quarters from Distribution segment was also suffered because of Demonetisation.

The company has focused on export activities with the help of Regal Beloit's Global East sales networks and supplied Medium and Low voltage motors to Europe, Middle East and South East Asia.

In the year 2016-17, the quality level for products also improved drastically and the PPM levels fell sharply in both PW and AEIW.

Like the previous year, there was a good amount of savings realized through various VCP (Variable Cost Profitability) projects and Six Sigma and Kaizen activities. This year the company has again excelled in EHSS (Environmental, Health, Safety and Sustainability) activities and maintained safety standards as per Regal norms.

On the manufacturing front, Company achieved certain significant developments viz

1. Development of largest vertical Sq. cage motor (A/c. – Flow more) - DCV710U/1400KW/12P/11KV.

2. New type of slipring design with CACA type cooling facility inside the collector chamber to reduce temperature rise of slipring unit. (A/c. Aghragachi Cement, Nepal) - NFDW560U/1850KW/6P/6.6KV

3. Aluminum bar welded cage rotor design and manufacturing instead of Copper cage rotor to reduce material cost.

4. Drop-in replacement of 565KW/6P/3.3 KV CACA motor (A/C - Regal UK) with special silencing arrangement to reduce noise level.

5. Development of sugar mill duty IP55 slipring motor for fibrizer application - FDW710U/1500KW/8P/11KV.

6. 3300V and 6600V stator coils have passed steady state ignition test with explosive gas mixture IIC at Karandikar Laboratory as a prerequisite

for ATEX certification Exec (Popularly known as Ex n). This will open up sales opportunities for Ex 'ec' motors in European market.

7. Flame-proof Brake Motor (Frame: KF132; Brake Size:12)

8. Brake motor range extension (Frame: VDB280; Brake Size: 40)

9. FLP Tunnel/Mine Ventilation Motor (KF160, 200, 225)

10. Motor fitted with Starter for Construction Machinery (Ac: Killick)

11. Compliance on ATEX certification for non-sparking Exec motors (Ref.: IS/IEC 60079)

INDEX OF CHARGES

S No	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Amount	Address
1	A64044845	10047328	PUNJAB NATIONAL BANK	20/03/2007	30/04/2009	100000000.0	B. R. B. B. ROAD BRANCH135, B. R. B. B. ROAD KOLKATA WEST BENGAL 700001 INDIA
2	B01237346	10033907	IDBI BANK LIMITED	15/12/2006	15/12/2010	380000000.0	KOLKATA MAIN BRANCH (MCG) IDBI HOUSE, 44 SHAKESPEARE SARANI KOLKATA WEST BENGAL 700017 INDIA

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Claims against company not acknowledged as debt	369.499	354.365

FIXED ASSETS

• Land
• Plant and equipment
• Factory equipment’s
• Furniture and fixtures
• Computer equipment’s

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 67.22
UK Pound	1	INR 90.87
Euro	1	INR 80.08

INFORMATION DETAILS

Information Gathered by :	SHR
Analysis Done by :	DIV
Report Prepared by :	RKI

SCORE FACTORS

DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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.