MIRA INFORM REPORT

Report Date :

11.05.2007

IDENTIFICATION DETAILS

Name :	HONEYWELL TURBO TECHNOLOGIES [INDIA] PRIVATE LIMITED
Registered Office :	Plot No. 4A, Raisoni Industrial Estate Near, Hinjewadi Phase II, Taluka Mulshi, Village Mann, Pune – 411057, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	03.11.2004
Com. Reg. No.:	11-19904
CIN No.: [Company Identification No.]	U29299PN2004PTC019904
TAN No.: [Tax Deduction & Collection Account No.]	PNEH04792E
PAN No.: [Permanent Account No.]	AABCH5035J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers, Exporters, Importer and Traders of Turbochargers and Exhaust Gas Coolers.

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security

Maximum Credit Limit :	--
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an old and established company having moderate track records. Company’s profitability is under severe pressure. It has some accumulated losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at usual trade terms and conditions, with slight caution initially.

LOCATIONS

Registered Office/ Factory :	Plot No. 4A, Raisoni Industrial Estate Near, Hinjewadi Phase II, Taluka Mulshi, Village Mann, Pune – 411057, Maharashtra, India
Tel No. :	91-20-66524074
E-Mail :	vinit.maheshwari@honeywell.com
Website :	http://www.honeywell.com
Office :	Sakar 10, 1^st Floor, 33 Sasoon Road, Village Kesnand, Pune – 411001, Maharashtra, India
Tel. No.:	91-20-56048573 / 56524000
Fax No.:	91-20-56032863
Branches :	Located at : Bangalore, Chennai and Gurgaon

DIRECTORS

Name :	Mr. Raman Sharma
Designation :	Director
Name :	Mr. Ashwani Amar Gupta
Designation :	Director
Name :	Mr. P N Thimmaiah
Designation :	Managing Director
Name :	Mr. Thomas Francis Larkins
Designation :	Director
Name :	Mr. John Chistopher Stephens
Designation :	Director
Name :	Ms. Sneha Padwe
Designation :	Director
Name :	Mr. Apurv Narayanprasad Choubey
Designation :	Director
Name :	Mr. Vinit Maheshwari
Designation :	Company Secretary

KEY EXECUTIVES

Name :	Mr. Vinit Maheshwari
Designation :	Secretary
Address :	“Sanchay”, G – 39, M.I.G. Colony, Indore – 452011, Madhya Pradesh
Date of Birth/Age :	06.05.1978
Date of Appointment :	01.08.2006
DIN / PAN No. :	AGLPM1570C

SHAREHOLDING PATTERN

Names of Shareholders	Percentage of Holding
Foreign Holdings [Foreign Institutional Investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indians or Overseas Corporate Bodies or Others	99.87 %
Directors or relatives of directors	0.13 %
TOTAL	100.00 %

BUSINESS DETAILS

Line of Business :	Manufacturers, Exporters, Importer and Traders of Turbochargers and Exhaust Gas Coolers.
Brand Names :	Honeywell

GENERAL INFORMATION

Bankers :

Not Available

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	Price Waterhouse House, Veer Sawarkar Marg, Shivaji Park, Dadar, Mumbai – 400028, Maharashtra, India
PAN No.:	AADFP9359C
Holding Company :	Honeywell Technologies SARL Switzerland

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	Rs. 40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2970000	Equity Shares	Rs. 10/- each	Rs. 29.700 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		29.700	29.365
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		[99.565]	[16.482]
NETWORTH		[69.865]	12.883
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		385.647	88.442
TOTAL BORROWING		385.647	88.442
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		315.782	101.325
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		319.520	32.547
Capital work-in-progress		6.013	52.371
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.981	0.000
	Sundry Debtors	5.807	0.000
	Cash & Bank Balances	1.629	19.914
	Loans & Advances	22.091	2.971
Total Current Assets		30.508	22.885
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	40.148	10.148
	Provisions	0.111	0.352
Total Current Liabilities		40.259	10.500
Net Current Assets		[9.751]	12.385
MISCELLANEOUS EXPENSES		0.000	4.022
TOTAL		315.782	101.325

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover		22.756	2.514
Other Income
Total Income		22.756	2.514
Profit/(Loss) Before Tax		[81.339]	[16.482]
Provision for Taxation		1.744	--
Profit/(Loss) After Tax		[83.083]	[16.482]
Earnings in Foreign Currency :
	Export Earnings	11.543	0.000
Total Earnings		11.543	0.000
Expenditures :
	Depreciation & Amortization	11.599	0.225
	Other Expenditure	80.897	18.546
Total Expenditure		92.496	18.771

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	[365.10]	[655.60]
Net Profit Margin (PBT/Sales)	(%)	[357.44]	[655.60]
Return on Total Assets (PBT/Total Assets}	(%)	[19.55]	[14.81]
Return on Investment (ROI) (PBT/Networth)		[1.16]	[1.28]
Debt Equity Ratio (Total Liability/Networth)		[6.09]	7.67
Current Ratio (Current Asset/Current Liability)		0.75	2.17

LOCAL AGENCY FURTHER INFORMATION

WEBSITE DETAILS

Honeywell in India

Honeywell’s presence in India dates back to many decades and currently the Honeywell businesses are headquartered across four major locations in India – Pune, Bangalore, Chennai and Gurgaon, employing over 7500 people. Honeywell’s business presence in India is approximately USD 500 million and growing at an impressive rate. The Superbrands Council of India has recognized Honeywell as a “Business Superbrand”.

It is a listed company on the Bombay Stock Exchange (BSE) and is headquartered in Pune. HAIL businesses span across automation and control solutions for industrial and commercial sectors, building management and products in the automation and security space. The business has grown at an impressive 26% year on year for the last 3 years.

In Gurgaon, Honeywell has teams supporting the Aerospace, Specialty Materials and Life Safety business groups. A newly established call centre is engaged in providing customer support to the Automation and Control Solutions business in the US. The Life Safety business has been the market leader for several years now. Commercial and Defense Aerospace are poised to take off in a big way, given India's present thrust on the aviation sector.

Honeywell Technology Solutions Lab in Bangalore started operations as an offshore development centre. Today, it provides Product Solutions & Analytics, New Product Introduction, Advanced Research and Technology and IT & Business Process Solutions support to Honeywell businesses across the globe. Easily one of the bigger R & D outfits (in the top 10) established by multi-national corporations in India, it is a SEI CMMI Level 5 company and has filed more than 50 patents so far. Recently, HTSL has earned the recognition as one of the Top 10 Great Places to work in India (in a survey conducted by Business World). It also has a campus in Madurai.

Honeywell Turbo Technologies has a state-of-the-art manufacturing plant in Hingewadi, Pune and will be the first company in India to manufacture VNT™ turbochargers. Honeywell’s VNT™ turbochargers, when used on engines with common rail direct injection technology can improve fuel economy by up to 20%, boosting fuel economy, increase low speed engine boost and reduce emissions.

Honeywell ED&S (formerly Novar India) has manufacturing facilities in Chennai is a market leader in electrical devices and switches.

Honeywell Turbo Tech India to make turbochargers

Bureau

Pune , Nov. 15

THE Pune-based Honeywell Turbo Technologies India Private Limited, a wholly owned subsidiary of the $2.4-billion Honeywell Turbo Technologies, announced on Tuesday that it would start manufacture of a range of turbochargers to cater to the growing demand in the country's passenger and utility vehicle segments.

The company said the parent company will procure components from India worth $100 million in three to four years and also use the Indian operations, based at Hingewadi in Pune, to tap the export markets in Asia and Europe.

Mr Sanjay Sondhi, Managing Director, said the company will manufacture Honeywell's variable nozzle turbochargers for the first time in India and will initially manufacture turbochargers for Tata Motor's 1.4 and 2.2 litre engines.

The company has invested $10 million to set up the facilities which will initially manufacture 1,25,000 turbo chargers and eventually have the capacity to manufacture up to 0. 500 million units.

Turbo chargers help vehicle users get better power, lower emissions and better fuel efficiencies. Tighter emission control norms coupled with increasing acceptance of diesel engines among vehicle owners is fuelling the Indian market for turbo chargers, which is estimated at 0.400 million units this year. It is expected to grow at 25 per cent over the next three to four years. While 50 per cent of the vehicles on European roads are diesel powered, the Indian market is expected to touch the 35-50 per cent level in the next three to four years.

Mr Sondhi said the company is to kick off commercial production of turbo chargers for the 1.4-litre engine this month while that for the 2.2-litre engine will go into commercial production in the first quarter of next year.

The company's export plans will take off next year, said Mr Sondhi. He said the company has at least one European customer lined up through its parent company.

Meanwhile, Honeywell Turbo Technologies has drawn up other plans for India and will place orders for components worth $20 million next year.

"They expect to place orders in India to supply machined and cast components and those requiring precision machining, among other things, worth $100 million in three to four years," Mr Sondhi said.

The company is also in negotiations with manufacturers of heavy commercial vehicles and has in its portfolio products for industrial and off-road applications, said Mr Sondhi. He said it will also tap the after or replacement market for turbochargers.

About Them

Honeywell International is a diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials.

Whether you’re flying on a plane, driving a car, heating or cooling a home, furnishing an apartment, taking medication or playing a sport, Honeywell products touch most peoples’ lives everyday. They are building a world that’s safer and more secure … more comfortable and energy efficient … more innovative and productive. 

Their Culture

Honeywell is a great place to work. They offer challenging assignments and the opportunity to work with some terrific people around the world. They emphasize continuous learning, with opportunities to improve and grow their skills and experiences. They hire the best people; give them every possible opportunity to learn, grow, and develop; and reward them for their contributions.

Their History

With roots tracing back to 1885, Honeytheyll employs more than 100,000 people in 95 countries. Under the leadership of Chairman and CEO Dave Cote, they focus on their Five Initiatives: Growth, Productivity, Cash, People and the Enablers, Honeytheyll Operating System and Functional Transformation.

Hometown Solutions

Community involvement is an essential part of Honeywell’s legacy and a critical part of their future. Through Honeywell Hometown Solutions, they focus their philanthropic and volunteer restheirces around the globe on three issues of vital importance: family safety and security, housing and shelter, and science and math education.

Code of Business Conduct

Honeywell's Integrity and Compliance program reflects their values. It ensures that their employees, representatives, contractors, consultants and suppliers worldwide comply with a high standard of business conduct and protect the company’s strong reputation for ethical conduct.

Honeywell Leadership

Honeywell leaders are among the most successful in the business world…and for good reason. They hire talented people, nurture their development with extensive training and challenging work assignments, and then set aggressive goals.

Their History

In 2002, David M. Cote was named Chairman and CEO of Honeywell. Under his leadership the company focuses on five key initiatives: Growth, Productivity, Cash, People and the Enablers, Honeywell Operating System and Functional Transformation, in order to strengthen Honeywell’s position as one of the world's leading enterprises in the new millennium.

Honeywell can trace its roots back to 1885, when an inventor named Albert Butz patented the furnace regulator and alarm. He formed the Butz Thermo-Electric Regulator Co., Minneapolis, on April 23, 1886, and a few weeks later invented a simple, yet ingenious device that he called the "damper flapper."

Here's how it worked. When a room cooled below a predetermined temperature, a thermostat closed the circuit and energized an armature. This pulled the stop from the motor gears, allowing a crank attached to the main motor shaft to turn one-half revolution. A chain connected to the crank opened the furnace's air damper to let in air. This made the fire burn hotter. When the temperature rose to the preset level, the thermostat signaled the motor to turn another half revolution, closing the damper and damping the fire. The temperature correction was automatic. Over the years, many Honeywell products have been based upon similar, but more complicated closed-loop systems.

The Consolidated Temperature Controlling Co. incorporated, acquired Butz's patents and business, and by 1893, had renamed itself Electric Heat Regulator Co. The first company ads ran in 1895 featuring the now famous thermostat. In 1898, the company was purchased by W. R. Sweatt, who, by 1916, had changed the name of the company to Minneapolis Heat Regulator Company, expanded its product line and patented the first electric motor approved by Underwriters Laboratories.

Meanwhile, in Wabash, Indiana ...

Meanwhile, in 1904 a young engineer named Mark Honeywell, was perfecting the heat generator as part of his plumbing and heating business. Two years later, he formed the Honeywell Heating Specialty Co, incorporated, specializing in hot water heat generators.

By 1912, EHR had expanded its product line and changed its name to Minneapolis Heat Regulator Company (MHR). Four years later, MHR patented the first electric motor approved by Underwriters Laboratories.

The 1927 merger

In 1927, Minneapolis Heat Regulator Company and Honeywell Heating Specialty Co. merged to form the Minneapolis-Honeywell Regulator Co., and became the largest producer of high-quality jeweled clocks. W. R. Sweatt became chairman and Mark Honeywell, president. The company made several acquisitions in the controls area. One of those acquisitions was the Brown Instrument Co., a worldwide leader in the field of industrial controls and indicators, and inventor of the pyrometer. Until Edward Brown had invented the carbon-rod pyrometer in the mid-nineteenth century, there was no accurate way to measure the extremely high temperatures in foundries and kilns.

Business around the world

Minneapolis-Honeywell Regulator Co. had long been selling its products around the world through distributors like Yamatake Trading Company in Japan. In 1934, the company acquired Time-O-Stat Controls Corporation and began a long history of global expansion. The first office outside the U.S. was established in Toronto, Canada. Its first European subsidiary was established in the Netherlands the same year, and, within a few years, offices were opened in London and Stockholm. By 1941, it had distributors in Chile, Panama, Trinidad, New Zealand, Argentina and South Africa. By 1972, it operated 25 wholly owned subsidiaries, 142 branch offices, and joint ventures in five countries outside the U.S. In 1993, the company opened affiliates in Abu Dhabi, China, Oman, Romania and the Ukraine. By 1998, Honeywell had operations in 95 countries through 83 wholly owned subsidiaries and 13 joint ventures.

Products, developments and acquisitions

Minneapolis-Honeywell Regulator Co. leveraged its scientific and engineering talent to transform itself and adapt to changing times. Mass production was perfected and an array of aeronautical equipment broadened the company's product portfolio. In 1942, the company invented the electronic autopilot (C-1), which proved to be critically important to the U.S. war effort.

In 1953, the company introduced the T-86 "Round" thermostat, which replaced chunky, rectangular models. One of the world's most recognizable designs, it remains in production today and adorns the walls of more households around the world than any other thermostat.

In 1954, the company acquired Doelcam Corp., a maker of gyroscopes. Over the next two decades, the company constantly improved gyroscopes, making them more sensitive and precise while reducing their size and weight.

In 1955, a joint venture called Datamatic Corporation, was established with Raytheon Corp. that marked Honeywell's entry into the computer business. The company's first computer system, the D-1000, weighed 25 tons, took up 6,000 square feet and cost $1.5 million.

In 1957, Minneapolis-Honeywell Regulator Co. purchased a fire detection and alarm firm, the first of many acquisitions that would build its security business into today's global leader. In many North America cities, the red and black "Protected by Honeywell" window stickers and placards became nearly as recognizable as the Round thermostat.

Raytheon's interest in the computer venture was bought out in 1960 and the business name changed to Electronic Data Processing (EDP).

The company's name was officially changed to Honeywell Inc. in 1963, even though it had been casually referred to as such for nearly 40 years. Six years later, Honeywell instruments helped U.S. astronauts Neil Armstrong and Edwin "Buzz" Aldrin land on the moon.

In 1970, Honeywell merged its computer business with General Electric's to form Honeywell Information Systems, which performed well in mainframe markets. In 1986, the personal computer emerged and the company formed Honeywell Bull, a global joint venture with Compagnie des Machines Bull of France and NEC Corporation of Japan. Its ownership level was gradually decreased until, in 1991, Honeywell was no longer in the computer business. The digital computer knowledge was then applied to its traditional field of automation control, integrating sensors and activators.

In 1986, Honeywell significantly enhanced its position in the aerospace industry with the purchase of Sperry Aerospace. It instantly became the world's leading integrator of avionics systems. Sperry contributed flight controls, space vehicles and the first FAA-certified wind shear warning system.

The AlliedSignal Connection

During World War I, Germany controlled much of the world's chemical industry, causing shortages of such commodities as dyes and drugs. In response, in 1920 Washington Post publisher Eugene Meyer and scientist William Nichols formed the Allied Chemical & Dye Corporation as an amalgamation of five American chemical companies established in the 1800s.

In 1928, Allied opened a synthetic ammonia plant near Hopewell, Virginia, becoming the world's leading producer of ammonia.

This was the company's earliest venture into new markets. After World War II, Allied began manufacturing other new products, including nylon 6 (for making everything from tires to clothes) and refrigerants. In 1958, it became Allied Chemical Corp. and moved into its current corporate headquarters in Morristown, New Jersey.

In 1962, Allied bought Union Texas Natural Gas, which owned oil and gas properties throughout the Americas. Allied regarded it mainly as a supplier of raw materials for its chemical products, but this changed in the early 1970s when CEO John Connor (secretary of commerce under Lyndon Johnson) sold many of Allied's unprofitable businesses and invested in oil and gas exploration. By 1979, when Edward Hennessy Jr. became CEO, Union Texas produced 80% of Allied's income.

Under its new name, Allied Corp. (1981), the company went on to purchase the Bendix Corp., an aerospace and automotive company, in 1983. By 1984, Bendix generated 50% of Allied's income, while oil and gas generated 38%.

In 1985, Allied merged with the Signal Companies, adding critical mass to its aerospace, automotive and engineered materials businesses. Founded by Sam Mosher in 1922 as the Signal Gasoline Company, Signal was originally a California company that produced gasoline from natural gas. In 1928, the company changed its name to Signal Oil & Gas, entering into oil production the same year. Signal merged with the Garrett Corporation, a Los Angeles-based aerospace company, and in 1968 adopted the Signal Companies as its corporate name.

The addition of Signal's Garrett division to Bendix made aerospace Allied-Signal's largest business sector. In 1985, the company sold 50% of Union Texas, and in 1986 it divested 35 non-strategic businesses through the formation and spin-off of The Henley Group, Inc.

In mid-1991, with a new CEO, Lawrence A. Bossidy, and new leadership in many key businesses, Allied-Signal began a comprehensive program of transformation. Bold actions were taken to improve cash flow and operating margins, to increase productivity, and to position the company as a global competitive force for the years ahead. The Allied-Signal name was changed to AlliedSignal in 1993 to reinforce a one-company image and signify the full integration of all of its businesses.

In 1992, the company sold its remaining interest in Union Texas through a public offering for $940 million in net proceeds.

Throughout the 90’s, Lawrence A. Bossidy led a growth and productivity transformation that quintupled the market value of AlliedSignal shares and significantly outperformed the Dow Jones Industrial Average and the S&P 500.

Honeywell was founded and shaped by inventive technical people and superior leadership. These same values power the new Honeywell. The new Honeywell captures the best of its AlliedSignal and Honeywell Inc. heritage, and is one of the world’s leading companies.

Press Releases:

Honeywell Introduces New Microelectronic Product Line For Military And Space Computer Systems

Sophisticated, Reliable Electronics Components Designed For Use in Military Applications, Space

PHOENIX, May 2, 2007 -- Honeywell (NYSE: HON) announced today that it has developed a new line of sophisticated electronic components designed specifically to meet the stringent reliability requirements for computers operating in technically advanced military and commercial aerospace conditions.

Honeywell’s microelectronics product offering includes next-generation integrated circuits manufactured to withstand the shock, vibration and extreme radiation conditions that occur in space and other military environments. The components are developed using the company’s radiation-hardened, silicon-on-insulator (SOI) complementary metal oxide semiconductor (CMOS) technology.

“We’re offering design engineers a large selection of innovative products for use in new and existing systems,” said David Wick, Director, Microelectronics Sales, Honeywell Defense and Space. “These highly advanced, small circuits offer significantly reduced power consumption and improved reliability in the harshest of environments.”

The new microelectronic produce line includes the following components:

• HX5000 - A 12-million gate Application Specific Integrated Circuit (ASIC) specifically designed for radiation-tolerant and radiation-hardened applications. The HX5000 can be configured by customers using the Synopsys Design Automation Galaxy ASIC design software to integrate digital logic, microcontrollers, multi-channel multi-gigabit per second communication port and static memory functions onto a single integrated circuit.

• HXSRO1608– A 16-million bit Static Read Access Memory (SRAM) that provides a memory function four times the memory density than earlier SRAM components. The HXSRO1608 features 60% lower power and requires 75% less circuit board space than previous available 5V SRAM products. The new SRAM can be used for new system designs or to replace older SRAM functions.

• HXNVO100– The first non volatile Magnetic RAM (MRAM) to combine SOI CMOS technology with magnetic thin films. The HXNVO100 is a one-million bit MRAM for strategic space electronics applications and can be used as a replacement for plated wire memory, as the program memory function.

• RHPPC Processor – A single-package, radiation-hardened component for space borne electronic systems based on Freescale’s 603e™ processor. Applications include single board computers that manage data processing, and controls on satellites and launch vehicles.

All of the new components are produced at Honeywell’s Trusted Foundry in Plymouth, Minnesota. Honeywell is one of just two radiation-hardened wafer foundries in the United States to earn the Department of Defense’s Accreditation of Trust. The accreditation applies to the company’s 0.15-micron, 0.35-micron and 0.8-micron silicon wafer processes.

Silicon wafers are used to make Application Specific Integrated Circuits (ASIC) and memory components, which are subsequently used in commercial and military avionics systems, payload electronics for commercial and military space systems, inertial measurement units, flight control systems, circuit replacement programs and many other aerospace systems.

Honeywell International is a $33 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London and Chicago Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor’s 500 Index. For additional information, please visit www.honeywell.com

Based in Phoenix, Honeywell’s aerospace business is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.

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] on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.41.34
UK Pound	1	Rs.81.81
Euro	1	Rs.55.74

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--MARGINS	-5~5	-
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
TOTAL		20

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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