26
NSIC – D&B – SMERA Rating Report Date of Report : 21 st November, 2011 * Legal Form : Proprietorship Concern * This rating is a one-time exercise and does not envisage automatic surveillance. This rating is valid for a period of one year; subject to however, no significant changes / events occur during that period which could materially affect the business and financials parameters of the organization / project. SMERA recommends that the user of the rating may seek a review of the rating, if the rated entity experiences significant changes / events in the business. Recommended for review in next financial year. NSIC – D&B – SMERA Rating : SE 4B (Weak Performance Capability and Moderate Financial Strength) NEW ENTERPRISE RATING INDICATORS Financial Strength High Moderate Low Performance Capability Highest SE 1A SE 1B SE 1C High SE 2A SE 2B SE 2C Moderate SE 3A SE 3B SE 3C Weak SE 4A SE 4B SE 4C Poor SE 5A SE 5B SE 5C ROHAN INDUSTRIES H-119, Mega Centre, Magarpatta, Hadapsar, Pune – 411 028 Maharashtra India

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Page 1: NSIC – D&B - 2.imimg.com2.imimg.com/data2/QU/OX/MY-/rohan-industries-report.pdf · Dharti Agro Chemicals Private Limited, Nagpur 02 20 New Era Adhesive Industries, Jalgaon 02 10

NSIC – D&B – SMERA Rating Report

Date of Report : 21st November, 2011 * Legal Form : Proprietorship Concern

* This rating is a one-time exercise and does not envisage automatic surveillance. This rating is valid for a period of one year; subject to however, no significant changes / events occur during that period which could materially affect the business and financials parameters of the organization / project. SMERA recommends that the user of the rating may seek a review of the rating, if the rated entity experiences significant changes / events in the business. Recommended for review in next financial year.

NSIC – D&B – SMERA Rating : SE 4B

(Weak Performance Capability and Moderate Financial Strength)

NEW ENTERPRISE RATING INDICATORS

Financial Strength

High Moderate Low

Performance Capability

Highest SE 1A SE 1B SE 1C

High SE 2A SE 2B SE 2C

Moderate SE 3A SE 3B SE 3C

Weak SE 4A SE 4B SE 4C

Poor SE 5A SE 5B SE 5C

ROHAN INDUSTRIES

H-119, Mega Centre, Magarpatta, Hadapsar,

Pune – 411 028 Maharashtra

India

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ROHAN INDUSTRIES

1

SNAPSHOT

D&B D-U-N-S® Number 65-058-1577

Entity Name ROHAN INDUSTRIES

Administrative Office Address

H - 119, Mega Centre, Magarpatta, Hadapsar, Pune – 411 028 Maharashtra India

Telephone (91) (20) (26810545)

Factory Address

Gat No. 1553, Shikrapur, Tal. Shirur, Pune – 412 205 Maharashtra India

Email ID [email protected]

Line of Business Manufacturing of HDPE Plastic Blow Moulding Bottles and Automobile Injection Moulding Components

Chief Executive Mr. Rohan Pawar, Proprietor

NSIC - D&B - SMERA Rating SE 4B (Weak Performance Capability and Moderate Financial Strength)

Entrepreneur’s Memorandum Number

270251109300 /Part – II

Category of Promoter General

Establishment Date 03/Mar/2009

Commencement of Production 09/Apr/2009

Total Employees 16

Sales Territory Domestic

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ROHAN INDUSTRIES

2

COMPANY PROFILE BACKGROUND

Rohan Industries (hereafter referred as subject) was established in the year 2009 as a proprietorship

concern by Mr. Rohan Pawar.

OPERATIONS Subject is engaged in manufacturing of HDPE plastic blow moulding bottles and automobile

injection moulding components.

PRODUCTS

� Bottles

� Jerry Can

� Containers

� Automobile Injection Moulding Components

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ROHAN INDUSTRIES

3

FINANCIAL SNAPSHOT

FIGURES (`̀̀̀ IN THOUSANDS)

Statement End Date 31/Mar/2009 31/Mar/2010

Current Assets 82 385

Current Liabilities 5 78

Working Capital 77 307

Other Tangible Assets 996 1,073

Non-Current Liabilities 0 150

Tangible Net Worth 1,073 1,230

Unsecured Loans 0 150

Cash & Bank 16 37

Accounts Receivable 41 323

Fixed Assets 446 1,073

Income 455 2,645

Net Profit 36 212

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ROHAN INDUSTRIES

4

SALIENT FEATURES

• Subject is a newly established entity and has started its operations on 09/Apr/2009.

• Mr. Rohan Pawar, Proprietor of the subject has limited experience in this line of business.

• Subject has earned revenue of ` 455 (in thousands) in FY 2009 and ` 2,645 (in thousands) in FY

2010. Further, as per provisional financials, subject has earned revenue of ` 3,491 (in thousands)

for FY 2011.

• Subject has earned gross profit of ` 153 (in thousands) in FY 2009 and ` 643 (in thousands) in

FY 2010.

• Subject has earned net profit of ` 36 (in thousands) in FY 2009 and ` 212 (in thousands) in FY

2010.

• Current ratio stands at 4.94 as on 31/Mar/2010.

• Collection days stand at 45 for FY 2010. Around 20% each of sale are made to Evergreen Micro

Nutrients and Dharti Agro Chemicals Private Limited.

• Around 50% of Polypropylene and 20% of Polymer purchases are made from Haldia

Petrochemicals Limited and Shanti Polymers respectively and around 30% of HDPE blow

Moulding work is outsourced from Rex Polyextrusion Limited.

• Subject has been sanctioned a cash credit limit of ` 10 (in lakhs) and term loan of ` 90 (in lakhs)

from Indian Overseas Bank after 31/Mar/2010.

• Fixed assets have increased in FY 2010 over FY 2009 on account additions made to plant &

machinery.

• As informed by management, subject has taken adequate insurance cover for plant &

machinery and stock.

• Tangible net worth and capital employed have increased in FY 2010 over FY 2009.

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ROHAN INDUSTRIES

5

• As informed by management, pollution control norms for air and water are not applicable to

the subject.

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ROHAN INDUSTRIES

6

FINANCIAL TREND

455

2,645

0

500

1,000

1,500

2,000

2,500

3,000

2009 2010

`

`

` ` ('000)

Sales

Sales

36

212

0

50

100

150

200

250

2009 2010

`

`

` ` ('000)

Profit

Profit

7.91 8.02

8.79 8.09

33.63

24.31

0.00 5.00

10.00 15.00 20.00 25.00 30.00 35.00 40.00

2009 2010

Percentage

Profit Margins

Net Profit Margin

Operating Profit Margin

Gross Profit Margin

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ROHAN INDUSTRIES

7

1,073 1,230

1,073

1,380

0

200

400

600

800

1,000

1,200

1,400

1,600

2009 2010

`

`

` ` ('000)

Tangible Networth Vs Capital Employed

Tangible Net worth Capital Employed

0 150

1,073 1,230

0%

20%

40%

60%

80%

100%

2009 2010

`

`

` ` ('000)

Capital Employed Pattern

Tangible Net Worth Unsecured Loan

3.36

17.24

3.73

15.51

0.00

4.00

8.00

12.00

16.00

20.00

2009 2010

Percentage

Returns

Return on Net worth

Return on Capital Employed

16.40

4.94

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

2009 2010

Tim

es

Liquidity

Current Ratio

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ROHAN INDUSTRIES

8

FISCAL BALANCE SHEET (`̀̀̀ IN THOUSANDS)

Date 31/Mar/2009 31/Mar/2010

Assets

Current Assets

Cash & Bank 16 37

Accounts Receivable * 41 323

Other Current Assets 25 25

Total Current Assets 82 385

Fixed Assets

Plant & Equipment 405 1,038

Other Fixed Assets 41 35

Total Fixed Assets 446 1,073

Other Assets

Advance for Capital Assets 550 0

Total Other Assets 550 0

Total Assets 1,078 1,458

Liabilities

Current Liabilities

Other Current Liabilities 5 78

Total Current Liabilities 5 78

Non-Current Liabilities

Due to Relatives / Friends / Group / Related Entities

0 150

Total Non-Current Liabilities 0 150

Equity

Capital 1,073 1,230

Total Equity 1,073 1,230

Total Liabilities 1,078 1,458

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ROHAN INDUSTRIES

9

PROFIT & LOSS ACCOUNT (`̀̀̀ IN THOUSANDS)

Financial Year 2009 2010

Months Covered By P/L 01 12

UNAUDITED AUDITED

Income 455 2,645

Cost of Sales (302) (2,002)

Employee Cost (67) (645)

Rent / Repairs and Maintenance (17) (52)

Electricity Charges (22) (310)

Job Work Charges (101) (297)

Other Direct Expenses (10) (177)

Raw Material Consumption Cost (85) (521)

Gross Profit (Loss) 153 643

Depreciation/Amortization (59) (208)

General Operating Expenses (54) (221)

Net Operating Profit (Loss) After Depreciation and Before Interest

40 214

Finance Expenses (4) (2)

Net Profit(Loss) 36 212

ABOVE FINANCIALS ARE CERTIFIED / AUDITED BY: Diwakar B. Dahotre & Co., (Chartered Accountants), 3, Gaurav Apartments, Opp. Sangam Press, Behind Walchand House, Kothrud Post Box No. 1905, Pune – 411 038 Maharashtra India

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ROHAN INDUSTRIES

10

FINANCIAL RATIOS

Financial Year 2009 2010

Turnover Ratios

Collection Period (Days) 03 45

Sales to Net Working Capital (Times) 5.91 8.62

Assets to Sales (%) 236.92 55.12

Fixed Assets Turnover Ratio 1.02 2.47

Profitability Ratios

Gross Profit Margin (%) 33.63 24.31

Operating Profit Margin (%) 8.79 8.09

Net Profit Margin (%) 7.91 8.02

Return on Assets (%) 3.34 14.54

Return on Net Worth (Return on Equity) (%) 3.36 17.24

Return on Capital Employed (%) 3.73 15.51

Liquidity Ratios

Current Ratio 16.40 4.94

Gearing & Solvency Ratios

Fixed Assets to Tangible Net Worth (%) 41.57 87.24

Current Liabilities to Tangible Net Worth (%) 0.47 6.34

Total Liabilities to Tangible Net Worth (%) 0.47 18.54

Total Borrowing to Tangible Net Worth Ratio - 0.12

Debt Equity Ratio - 0.12

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ROHAN INDUSTRIES

11

BANK

Information in this report may not represent the full extent of subject's bank relationships.

Name of the Bank Indian Overseas Bank

Branch Dahanukar Colony Branch

Dealing Since March, 2011

CREDIT FACILITIES As informed by management, subject enjoys the following credit facilities from the bank, (` in Lakhs)

Facilities Availed * Amount Sanctioned Amount Disbursed

Cash Credit 10.00 10.00

Term Loan 90.00 90.00

Total 100.00 100.00

* Above credit facilities were sanctioned on March, 2011. � No independent confirmation was obtained from banker. INSURANCE � As informed by management, subject has taken adequate insurance cover for plant &

machinery and stock.

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ROHAN INDUSTRIES

12

CAPITAL DETAILS

Proprietor’s Capital ` 1,230 (in thousands) as on 31/Mar/2010

PROPRIETOR’S DETAILS

Name Rohan Pawar

Year of Birth 1985

Current Designation

Proprietor, Head Human Resource, Finance and Marketing

Appointed to Present Position 2009

Started with Subject 2009

Educational Qualification B.E. (Mechanical)

Experience in Similar Industry since

2009

Active in Daily Operations Yes

Founder of Subject Yes

Residential Address

D-902, Citadel Empress, B. T. Kawade Road, Ghorpadi, Pune – 412 001 Maharashtra India

Permanent Account Number AMKPP3487C

Mobile Number (91) (9890199977) (91) (9923599335)

Email ID [email protected]

Net Worth ` 12.30 (in lakhs) as on 31/Mar/2010

OTHER DIRECTORSHIPS / PARTNERSHIPS / PROPRIETORSHIPS/HUF

Entity Employed Position Held

Stanmax Agro Industries Partner

MANAGEMENT / EMPLOYMENT HISTORY

Period Entity Employed Last Position Held

2008 to 2009 Nitiraj Plastics and Engineering Private Limited Factory Manager

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ROHAN INDUSTRIES

13

DEPARTMENTAL HEADS

Executive Name Position Held Educational Qualification

Year of Joining

Mahesh Nimaje Head Administration M. Com. 2010

Rajesh Dalvi Head Purchases DMR 2009

Waghmare Somil Head Manufacturing DME 2010

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ROHAN INDUSTRIES

14

PRODUCT CONTRIBUTION TO TOTAL SALES

Product Name Product Contribution To Total Sales (%)

FY 2009 FY 2010 FY 2011

HDPE Bottles N.A.

70 70

Automobile Injection Moulding Components 30 30

Total - 100.00 100.00

PROCESS FLOW CHART

Final Product

Printing

Pinch-Off Cutting

Bottle Production

Input Raw Material

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ROHAN INDUSTRIES

15

SEASON Peak period - January to October PRODUCTION DETAILS (IN NUMBER) FY 2011

Product Description Actual Output Production Capacity % Utilized

HDPE Plastic Blow Moulding Bottles and Automobile Injection Moulding Components

3,100,000 4,000,000 78

FY 2010

Product Description Actual Output Production Capacity % Utilized

HDPE Plastic Blow Moulding Bottles and Automobile Injection Moulding Components

900,000 1,200,000 75

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ROHAN INDUSTRIES

16

PURCHASES

Particulars FY 2009 FY 2010 FY 2011

(%) (%) (%)

Domestic 100 100 100

PURCHASING TERMS

Domestic Open account 10 days

SUPPLIERS

Suppliers Name and Location Materials Purchased

Length of Relationship (Years)

% Share in Purchases

Haldia Petrochemicals Limited, West Bengal

Polypropylene 02 50

Rex Polyextrusion Limited, Pune

HDPE Blow Moulding

01 30

Shanti Polymers, Pune

Polymer 02 20

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ROHAN INDUSTRIES

17

SALES

Particulars FY 2009 FY 2010 FY 2011

(%) (%) (%)

Domestic 100 100 100

SELLING TERMS

Domestic Open account 60 days

CUSTOMERS

Subject maintains around 20 to 35 accounts / customers. MAJOR CUSTOMER TYPES

Manufacturers MAJOR CUSTOMERS

Customer Name and Location Length of

Relationship (Years) % Share in Sales

Evergreen Micro Nutrients, Pune

02 20

Dharti Agro Chemicals Private Limited, Nagpur

02 20

New Era Adhesive Industries, Jalgaon

02 10

Shivraj Industries, Pune

02 05

Omkar Agro Chemicals Private Limited, Pune

02 05

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ROHAN INDUSTRIES

18

LIST OF ORDERS IN HAND

(` in Lakhs)

Name of the Customer Product Description Order Value

Jayadeep Plastics PD Containers 50.00

B. G. Chitale & Co. Food Containers 5.00

Evergreen Micro Nutrients

HDPE Bottles

50.00

Dharti Agro Chemicals Private Limited 12.00

Arya Polymers 25.00

Surya Fertilizers & Chemicals 5.00

Sunshine Chemical Private Limited 10.00

Swaraj Agro Chemical Private Limited 15.00

Sunshine Agri Private Limited 3.50

Total 175.50

EMPLOYEE(s) DETAILS

Particulars 2011 2010

Total Employees 16 10

Permanent Employees 16 10

Production Workers 13 08

GROUP / RELATED ENTITY

Entity Name Line of Business

Key Financials for FY 2010 (`̀̀̀ in thousands)

Net Sales Net Profit Total Debt

Total Networth

Stanmax Agro Industries

Manufacturing of Agriculture Pesticides

Operations are not yet started

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ROHAN INDUSTRIES

19

CIBIL DEFAULTERS LIST As observed from the CIBIL Defaulters list that is publicly available, the subject is not enlisted as a defaulter. AWARDS / REGISTRATIONS / MEMBERSHIPS / CERTIFICATES

Certificates Membership/Registration/Consent No. Date of Expiry

Entrepreneur’s Memorandum Number

270251109300 /Part – II 31/Dec/2018

VAT 27560795816V -

CST 27560795816C -

PAN AMKPP3487C -

� As informed by management, pollution control norms for air and water are not applicable to

the subject.

� Subject is a member of Plastics Manufacturers' Association and The Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA)'s.

Subject received below mentioned awards: 1. Best supplier of the year 2010 by Evergreen Seamless Pipes Tubes Private Limited. 2. Best vendor of the year 2010 by Dharti Agro Chemicals Private Limited. 3. Quality cautious award 2011 by Omkar Agro Chemicals Private Limited. 4. Best supplier of the year 2011 by Evergreen Micro Nutrients.

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ROHAN INDUSTRIES

20

SITE VISIT (CONDUCTED ON 17/OCT /2011)

Address

Gat No. 1553, Shikrapur, Tal. Shirur, Pune – 412 205 Maharashtra India

Size of Premise Land - 10,000 Sq. ft. Building – 4,500 Sq. ft.

Site Details Type Industrial Area

Site Location Main Road

Location Used As Factory

Kind of Buildings RCC Construction

Is unit using any Asbestos Roof No

On Floor Ground Floor

Type of Occupation Rented

Does Group Companies share the Office Yes

Is the office furnished Yes

Any Fire Extinguishers Yes

No. of people working at this location 16

Any child labour involved No

Does Proprietor sit at the site location Yes

Was Proprietor present at the time of interview Yes

Are there any competitors around No

Are there any nameplates outside the premises Yes

Major Raw Material / Purchases HDPE Blow Moulding, Polypropylene, Injection Moulding

Power Load Available 150 HP

No. of shifts that the unit is operating Single Shift Per Day

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ROHAN INDUSTRIES

21

Site equipped with following facilities:

Telephone No

Fax No

Internet Yes

Printer Yes

Modem Yes

Power Back up Yes

UPS Yes

Security Guards Yes

Signage, Name Plates Yes

Name of the Executive contacted Mr. Rohan Pawar, Proprietor

ONGOING / FUTURE EXPANSION PROJECTS

� Details in respect of ongoing / future expansion projects, if any are not available with SMERA, if any.

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ROHAN INDUSTRIES

22

GLOSSARY OF KEY RATIOS AND THEIR COMPUTATION

Ratios Description

Growth Ratios % change in variable in the current year over the previous (base) year

Sales Growth % change in sales in the current year over the previous year

Net Profit Growth % change in net profit in the current year over the previous year

Turnover Ratios

Collection Period (Days) Collection Days is calculated by dividing the days in a year by the debtors' turnover. The collection period represents the number of days’ worth of credit sales that is blocked with the debtors (accounts receivable). It is computed as follows: Collection Period = (Accounts receivable + Bills Receivable) X 365

Credit Sales

Account Payable (Days) Account Payable Days is a measure of the average time a company takes to pay vendors Account Payable Days = (Accounts payable + Bills Payable) X 365

Credit Purchases

Sales to Inventory (Times) Sales to Inventory is a measure of number of times inventory is converted into sales Sales to Inventory (Times) = Sales Inventory

Assets to Sales Total Assets / Sales

Sales to Net Working Capital Sales /Net Working Capital Wherein Net Working Capital = Current Assets – Current Liabilities

Fixed Assets Turnover Ratio Fixed Assets / Sales

Profitability Ratios

Gross Profit/ Loss Margin Measure of profit or loss earned / incurred after charging all direct expenses from sales Gross Profit / Loss (%) = Gross Profit / Loss X100 Sales

Operating Profit Margin Measure of profit or loss earned / incurred after charging all direct expenses plus indirect expenses from sales and other operating income pertaining to core business activities Operating Profit /Loss (%) = Operating Profit / Loss X 100 Sales

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ROHAN INDUSTRIES

23

Net Profit Margin Measure of net profit or loss earned / incurred after considering all incomes and expenses including taxes Net Profit /Loss (%) = Net Profit /Loss X 100 Sales

Return on Assets Net Profit (Loss) after Tax / Total Assets X 100

Return on Net Worth Net Profit (Loss) after Tax / Tangible Networth X 100

Return on Capital Employed EBIT / Capital Employed X 100

Liquidity Ratios

Current Ratio This ratio measures the short term liquidity of the enterprise and its ability to meet short-term debt obligation usually during the next 12 months Current Ratio = Current Assets / Current Liabilities

Quick Ratio Quick Ratio (QR) is the ratio between quick current assets (QA) and CL. QA refers to those current assets that can be converted into cash immediately without significant value dilution. QA includes cash and bank balances, short-term marketable securities and sundry debtors. Inventory and prepaid expenses are excluded since these cannot be turned into cash as and when required Quick Ratio = Quick Assets / Current Liabilities

Gearing and Solvency Ratios

Fixed Asset to Tangible Networth

Fixed Assets / Tangible Networth

Current Liability to Tangible Networth

Current Liability / Tangible Networth

Total Liabilities to Tangible Networth

Total Liabilities / Tangible Networth

Total Borrowings to Tangible Networth

(All short term and long Term Secured and Unsecured Loan) / Tangible Networth

Debt Equity Ratio This ratio shows the relative proportion of debt and equity in financing the assets of a firm. Debt includes long-term borrowings and equity includes net worth (paid-up equity capital and reserves and surplus) and preference capital. Debt - Equity Ratio = Long Term Debt / Tangible Networth

Interest Coverage Ratio This ratio is used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period Earnings before interest and taxes / Interest Expenses

Tangible Networth Shareholders Fund (Equity Capital plus Preference Capital plus

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ROHAN INDUSTRIES

24

Reserves Less Intangibles Less Deferred Tax Asset)

Capital Employed Tangible Networth plus Secured Loans plus Unsecured loans plus Deferred Sales Tax Loan plus Deferred Tax Liability

For the purpose of deriving rating, combination of above mentioned ratios would be used and calculations of these ratios may change based on nature of entities and at the discretion of SMERA Analyst.

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ROHAN INDUSTRIES

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CURRENCY: All amounts in this report are in local currency unless otherwise stated. ------------------------------------------------------------------------------------------------------------------------------------ RIGHTS TO THE REPORT ARE WITH SME RATING AGENCY OF INDIA LIMITED (SMERA).

THIS REPORT MAY NOT BE REPRODUCED IN WHOLE OR IN PART IN ANY FORM OR MANNER WHATSOEVER.

------------------------------------------------------------------------------------------------------------------------------------ The NSIC – D&B – SMERA Rating shall be read with the NSIC – D&B – SMERA Rating Report on the subject issued by SMERA. All information contained in the NSIC – D&B – SMERA Rating Report is obtained by SMERA from the subject and third party sources, and is believed to be accurate and reliable. Although reasonable care has been taken to ensure that the information in the Rating Report is true, such information is provided “as is” without any warranty of any kind and SMERA, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information SMERA is not responsible for any errors in transmission and specifically states that SMERA shall have no financial liability whatsoever to the users of the Rating Report. The rating does not constitute an audit and SMERA’s work is significantly different from that of an audit and accordingly, cannot be relied upon to provide the same level of assurance as an audit. Please note that the NSIC – D&B – SMERA Rating Report is not a recommendation to purchase, sell or hold any securities and investors should take their own decision. In providing this Rating, SMERA does not underwrite the risks of any third party or that of the subject. SMERA is not liable to the Company or any third party in respect of any matter specified in the Rating Report. SMERA may revise, suspend or withdraw the rating at any time in the future as a result of information changes in circumstances or unavailability of information. The NSIC – D&B – SMERA Rating Report is not intended for distribution/ publication/ reproduction in any form without SMERA’s prior written approval.

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