MIRA INFORM REPORT

Report Date :

21.02.2008

IDENTIFICATION DETAILS

Name :	JOHN DEERE EQUIPMENT PRIVATE LIMITED
Formerly Known As :	L AND T – JOHN DEERE PRIVATE LIMITED
Registered Office :	L and T House, Ballard Estate, Mumbai – 400 001, Maharashtra.
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	09.02.1998
Com. Reg. No.:	11-130449
CIN No.: [Company Identification No.]	U29210PN1998PTC130449
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Tractors.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 11024568
Status :	Satisfactory – Improving
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having satisfactory track records. Company’s profitability is improving and is expected to wipe off previous losses soon. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Off Pune Nagar Road, Sanaswadi, Taluka Shirur, Pune - 412 208, Maharashtra, India
Tel. No.:	91-2137-667159 / 667111
Fax No.:	91-2137-666838 / 266837
E-Mail :	BirlaMitilKumar@JohnDeere.com
Administrative Office :	L and T House, Ballard Estate, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22685656/ 22618181
Fax No.:	91-22-22685871/ 22685893
E-Mail :	kapoorpramod@johndeere.com nadigersatish@johndeere.com birlamitilkumar@johndeere.com
Website :	http://www.johndeere.com
Area :	112 acres
Location :	Owned
Head Office :	Crawford Bayley and Company, State Bank Building, 4^th Floor, N G N Vaidya Marg, Fort, Mumbai – 400 023, Maharashtra, India
Corporate Office / Factory :	Gate No.166 to 167, 271 to 291, Off Pune Nagar Road, Sanaswadi, District Pune - 412 208, Maharashtra, India
Tel. No.:	91-2137-252930/33/4/5/7
Fax No.:	91-2137-252936/253160
Location :	Owned

DIRECTORS

Name	Mr. Yeshwant Moreshwar Deosthalee
Designation	Director
Address	1001, Prabhu Kutir, 15, Altamount Road, Mumbai – 400 026, Maharashtra, India
Date of Birth	06.09.1946
Date of Appointment	02.04.1998
Name	Mr. Jagdish Pandurang Nayak
Designation	Director
Address	Gilder House, 67/F, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India
Date of Birth	13.11.1943
Date of Appointment	02.04.1998
Name	Mr. Jeam Gilles
Designation	Director (Foreign)
Address	Germany
Date of Birth	14.08.1957
Date of Appointment	09.12.1998
Ceasing Date	17.08.2001
Name	Mr. Klaus Dieter Ramsauer
Designation	Director & Manager (Foreign)
Address	Pune, Maharashtra
Date of Birth	20.06.1952
Date of Appointment	06.03.2001
Ceasing Date	01.04.2002
Name	Mr. Vanfrank John Landeghem
Designation	Director (Foreign)
Address	Germany
Date of Birth	25.02.1961
Date of Appointment	30.06.2000
Ceasing Date	17.08.2001
Name	Mr. Stephen Kent Kruse
Designation	Director (Foreign)
Address	1420, 34^th Avenue, B Court, MolineIllinois, USA
Date of Birth	07.06.1950
Date of Appointment	02.04.1998
Name	Mr. Adel Aally Zakaria
Designation	Director (Foreign)
Address	2716, 11^th Street, Moline, Illinois, USA
Date of Birth	20.06.1948
Date of Appointment	17.08.2001
Name	Mr. Michael Robert Evitts
Designation	Director (Foreign)
Address	700, Horizon South Parkway, Augusta, USA
Date of Birth	10.03.1952
Date of Appointment	15.02.2002
Name	Mr. Manjeri Subramanian Krishnamoorthy
Designation	Director
Address	11, Gauri Giridhar, Restom Sagar, Chembur, Mumbai – 400 089, Maharashtra, India.
Date of Birth	15.08.1946
Date of Appointment	15.02.2002
Name	Mr. Volker Otto Knickel
Designation	Director (Foreign)
Address	Satellite Towers, Koregaon Park, Pune – 411 001, Maharashtra, India
Date of Birth	06.12.1965
Date of Appointment	04.03.2004
Date of Ceasing	25.08.2004
Name	Mr. Douglas Edwin Schenk
Designation	Director (Foreign)
Address	923 Fox Ridge Road, Dike IA 50624, USA
Date of Birth	17.04.1952
Date of Appointment	05.10.2004
Name	Mr. Henry Arnold Puhl
Designation	Alternate Director
Address	Satellite Towers, Koregaon Park, Pune – 411 001, Maharashtra, India
Date of Birth	22.11.1970
Date of Appointment	04.02.2005
Name	Mr. Satish Bhimrao Nadiger
Designation	Additional Director
Address	601, BL-A/3, Aditya Shagun Bavdhan, Near N D A Road, Pune – 411 021, Maharashtra, India
Date of Birth	13.01.1963
Date of Appointment	31.07.2006
Name	Mr. Scott Jay McDonald
Designation	Director
Address	Flat No. A-21/22, Rivernest Society, Lane E, Koregaon Park, Pune – 411001, Maharashtra, India
Date of Birth	10.12.1971
Date of Appointment	17.03.2006

KEY EXECUTIVES

Name :	Mr. Sravam Kumar V. Yeleshwarpu
Designation :	Company Secretary
Address :	Powai, Mumbai, Maharashtra, India
Date of Birth/Age :	24.02.1960
Qualification :	09.12.1998
Ceasing Date :	17.08.2001
Name :	Mr. Pramod S. Kapoor
Designation :	Company Secretary
Address :	G-6, Konark Estate, Bund Garden Road, Pune – 411 001, Maharashtra, India
Date of Birth/Age :	26.03.1959
Date of Appointment :	17.08.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Larsen & Toubro Limited	87500000
John Deere India Private Limited	87500000

Equity Shares Breakup (Percentage of Total Equity):

Sr No.	Category	Percentage
1	Bodies corporate	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Tractors.
Products :	¡ Tractors

GENERAL INFORMATION

Bankers :	· State Bank of India Pune, Maharashtra · BNP Paribas Godrej Millennium, Bund Garden Road, Pune – 411001, Maharashtra, India · ICICI Bank Limited A Shangrila Gardens, Bund Gardens Road, Pune – 411001, Maharashtra, India · Export Import Bank of India Centre One, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Facilities :	The company enjoys mortgage loans facilities from BNP Paribas, ICICI Bank Limited and Export Import Bank of India.
Banking Relations :	Satisfactory
Auditors :
Name 1 :	Sharp and Tannan Chartered Accountants
Address 1 :	Ravindra Annexe, 194, Churchgate Reclamation, Dinshaw Vachha Road, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22047722
Name 2 :	Deloitte Haskins and Sells Chartered Accountants
Address 2 :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Pune – 400 018, Maharashtra, India
Holding Company :	¡ John Deere India Private Limited
Associates/Subsidiaries :	Ø Larsen and Toubro Limited Ø John Deere India Private Limited Ø Larsen and Toubro Finance Limited Ø India Infrastructure Developers Limited Ø Larsen and Toubro Infotech Limited Ø Clarity Advertising Agency Ø Deer and Company, USA Ø John Deere Works Mannechiem, Germany Ø Industrias John Deere, South Africa Ø John Deere Iberica S. A., Italy Ø John Deere Product Engineering Centre, USA Ø John Deere Usine De Saran, France Ø John DeereTiantyo Company Limited, Japan Ø John Deer Asia Pty Limited, Australia Ø Audco India Limited Ø EWAC Alloys Limited Ø Tractor Engineers Limited Ø L and T Chiyoda Limited Ø L and T Niro Limited Ø L and T Sargent and Lundy Limited Ø L and T Komatsu Limited Ø L and T Ramboll Consulting Engineers Limited Ø L and T Case Equipment Limited Ø Larsen and Toubro (Oman) LLC Ø Larsen and Toubro (Saudi Arabia) LLC Ø International Seaports Pte. Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
287441000	Equity Shares	Rs. 10/- each	Rs. 2874.410 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
287441000	Equity Shares	Rs. 10/- each	Rs.2874.410 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		2874.410	1750.000	1750.000
2] Share Application Money		0.000	1124.410	0.000
3] Reserves & Surplus		0.000	0.000	0.020
4] (Accumulated Losses)		(118.268)	(727.537)	(1145.016)
NETWORTH		2756.142	2146.873	605.004
LOAN FUNDS
1] Secured Loans		403.574	625.002	1529.868
2] Unsecured Loans		27.639	500.000	1549.528
TOTAL BORROWING		431.213	1125.002	3079.396
TOTAL		3187.355	3271.875	3684.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1842.966	1960.158	2139.461
Capital work-in-progress		38.104	36.878	38.364
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	332.543	546.860
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1007.711	1016.256	841.892
	Sundry Debtors	1483.071	863.748	688.363
	Cash & Bank Balances	516.198	408.211	267.637
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1087.246	769.475	362.514
Total Current Assets		4094.226	3057.690	2160.406
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2763.252	2070.052	1164.998
	Provisions	24.689	45.342	15.713
Total Current Liabilities		2787.941	2115.394	1180.711
Net Current Assets		1306.285	942.296	979.695
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3187.355	3271.875	3684.400

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		9130.891	8418.827	6356.721
Other Income		0.000	0.000	0.000
Total Income		9130.891	8418.827	6356.721
Profit/(Loss) Before Tax		988.823	646.731	126.877
Provision for Taxation		0.000	0.000	0.000
Profit/(Loss) After Tax		988.823	646.731	126.877
Earnings in Foreign Currency :
	Export Earnings	NA	4602.086	3550.775
Expenditures
Interest		131.235	213.577	0.000
Depreciation		219.048	216.320	0.000
Other Expenditures		7791.785	7342.196	6229.844
Total Expenditure		8142.068	7772.093	6229.844

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	10.82	7.68	1.99
Net Profit Margin (PBT/Sales)	(%)	10.82	7.68	1.99
Return on Total Assets (PBT/Total Assets}	(%)	16.54	12.00	2.60
Return on Investment (ROI) (PBT/Networth)		0.36	0.30	0.21
Debt Equity Ratio (Total Liability/Networth)		1.17	2.51	8.04
Current Ratio (Current Asset/Current Liability)		1.47	1.44	1.83

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Name of the company

JOHN DEERE EQUIPMENT PRIVATE LIMITED

Presented By

Mr. P S Kapoor, Company Secretary

1) Date and description of instrument creating the

change

1] working capital consortium agreement cum joint deed of hypothecation dated 19.06.2002 executed by L and T John Deere Private Limited (therein and hereafter referred to as “the borrower”) in favour of BNP Paribas Bank, ICICI Bank, Standard Chartered Bank and Credit Agricole Indosuez (hereinafter referred to as “the Earlier Participating Banks”) and

2] modified vide working capital consortium agreement cum joint deed of hypothecation dated 16.12.2003 executed by L and T – John Deere Private Limited (therein and hereinafter referred to as “the borrower”) in favour of BNP Paribas Bank, ICICI Bank and Export Import Bank of India (hereinafter referred to as “the participating banks”)

3] further modified vide supplemental agreement of hypothecation dated 29.10.2004

2) Amount secured by the charge/amount owing on

the securities of charge

Financial facility aggregating to INR 440 millions fund based and INR 30 millions non fund based for working capital requirement together with interest, compound interest, additional interest, liquidated damages (in case of default), costs (legal costs on a full indemnity basis) charges, expenses and all other monies payable by the borrower to the Earlier Participating Banks under the working capital consortium agreement banks dated 19.06.2002 made between the borrower and Earlier Participating Banks.

Amended / modified vide working capital consortium agreement cum joint deed of hypothecation dated 16.12.200, executed in favour of the participating banks, pursuant to which the participating banks have granted / agreed to grant / continue to grant financial facility aggregating to INR 250 millions plus USD 5 millions fund based and INR 100 millions non fund based.

Further amended / modified vide supplemental executed of hypothecation dated 29.10.2004, executed in favour of participating banks, pursuant to which the participating banks have granted / agreed to grant / continue to grant financial aggregating to INR 250 millions or equivalent USD plus USD 10 millions fund based and INR 45 millions non fund based, in the manner and proportion as follows.

	Fund Based	Non Fund Based
BNP Paribas	INR 100 millions (or USD Equivalent)	INR 25 millions
ICICI Bank	INR 150 millions (or USD equivalent)	INR 20 millions
EXIM Bank	USD 10 millions

As now amended / modified vide supplemental agreement of hypothecation dated 13.08.2005, executed in favour of participating banks, pursuant to which participating banks have granted / agreed to grant / continue to grant financial facility aggregating to INR 250 millions or equivalent USD plus USD 15 millions fund based and INR 45 millions non fund based, in the manner and proportion as follows.

Minimum Commitment Limit
	Fund Based	Non Fund Based
BNP Paribas	INR 100 millions (or USD Equivalent)	INR 25 millions
ICICI Bank	INR 150 millions (or USD equivalent)	INR 20 millions
EXIM Bank	USD 15 millions

Provided the aggregate borrowing under the fund based and non fund based limit of BNP Paribas shall not executed INR 100 millions at any given point of time.

Each of the participating banks shall at the discretion of the borrower provide working capital facilities up to the minimum committed limit as agreed between the participating banks and the borrower and the utilization of the limit from the Participating Banks shall be at the discretion of the borrower, provided however that the aggregate limit availed shall not exceed INR 900 millions fund based ad INR 250 millions non fund based at any given point of time. For the purpose of calculating this amount, the co-ordinating bank may given foreign currency outstanding due to the participating banks at such rate as it deems fit.

Which are now being secured under the said supplemental agreement of hypothecation dated 13.08.2005

3) Short particular of the property charged. If the

property acquired is subject to charge, date of

the acquired of the property should be given

Al the movable assets such as raw material, stock in process, stores and spares, finished goods, goods in transit, goods lying at various factories, godowns, warehouses, retail outlets, etc wherever situated, both present and future belonging to the borrower being movable properties and capable of passing by delivery.

All the book debts, outstanding monies, receivables, claims and bills which are now due and owing and or which may at any time hereafter during the continuance of this security become due and owing to the borrower in the course of its business by any person, firm, company, or body corporate, or by the Government Departments of the office or any Municipal or Local or Public or Semi Governmental Body or authority or any body corporate or undertaking or project whatever in the Public Sector.

4) Gist of the terms and conditions and extent and

operation of the charge.

The financial facility aggregating to INR 250 millions or equivalent USD plus 10 millions fund based and INR 45 millions non fund based granted to the borrower by the participating banks was secured by hypothecation by way of first charge ranking parri pasu inter se without any preference or priority to one over the other(s) over the borrower’s hypothecated stock and book debts, which is now amended to secure the financial facility aggregating to INR 900 millions or equivalent USD fund based and INR 250 millions non fund based granted / agreed to be granted / continue to be granted by the participating banks,

5) Name and Address and description of the

person entitled to the charge.

BNP Paribas

Godrej Millennium, Bund Garden Road, Pune – 411001, Maharashtra, India

ICICI Bank Limited

A Shangrila Gardens, Bund Gardens Road, Pune – 411001, Maharashtra, India

Export Import Bank of India

Centre One, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India

6) Date and brief description of instrument

modifying the charge

13.08.2005 supplemental agreement of hypothecation

The security created for the financial facilities granted by the participating banks under the supplemental agreement of hypothecation dated 29.10.2004 to working capital consortium sum joint deed of hypothecation dated 16.12.2003 has been increased in the view of the enhanced/ renewed fund based and non fund based facilities by the participating banks thought execution of the supplemental agreement of hypothecation dated 13.08.2005

7) Particulars of modifications specifying the terms

and conditions or the extent of operations of the

charge in which modification is made and the

details of the modification.

The financial facilities granted / agreed to be granted to the borrower by each of the participating banks are now secured u the borrower by hypothecation by way of first charge to and in favour of each of the participating banks ranking pari passu inter se without ay preference or priority to one over the other(s) on all the hypothecated stock and book debts.

The charge shall secure amounts outstanding in respect of the participating banks with minimum commitment as under:

Minimum Commitment Limit
	Fund Based	Non Fund Based
BNP Paribas	INR 100 millions (or USD Equivalent)	INR 25 millions
ICICI Bank	INR 150 millions (or USD equivalent)	INR 20 millions
EXIM Bnak	USD 15 millions

Provided the aggregate borrowing under the fund based and non fund based limit of BNP Paribas shall not executed INR 100 millions at any given point of time.

Each of the participating banks shall at the discretion of the borrower provide working capital facilities up to the minimum committed limit as agreed between the participating banks and the borrower and the utilization of the limit from the Participating Banks shall be at the discretion of the borrower, provided however that the aggregate limit availed shall not exceed INR 900 millions fund based ad INR 250 millions non fund based at any given point of time. For the purpose of calculating this amount, the co-ordinating bank may given foreign currency outstanding due to the participating banks at such rate as it deems fit.

According references to Name of the Bank and minimum in the working capital consortium agreement sum joint deed of hypothecation dated 16.12.2003 and supplemental agreement of hypothecation dated 29.10.2004 shall stand modified as above.

The company’s fixed assets of important value include

· Freehold Land,

· Buildings,

· Plant and Machinery,

· Furniture and Fixtures,

· Vehicles,

· Leasehold Plant and Machinery

· Leased Vehicles.

As Per Web:

Profile

Subject is a subsidiary of Deere and Company, USA in India. Its factory, located near Pune, manufactures 5000 Series agricultural tractors

The company has secured ISO 9001:2000 certificates for its compliance to quality systems and ISO 14001:2004 for its compliance to environmental management system from RWTUV, Germany. These certifications endorse John Deere’s exacting quality standards.

The Indian operations of Deere and Company include a technology center located at Magarpatta City Pune.The center provides services in the areas of Information technology, engineering, supply management, embedded systems and technical authoring for company’s operations world wide.

To expand its global presence in Ag equipment, John Deere established a green field project in 1999 under a 50:50 joint venture with Larsen and Toubro Limited (L and T) — An engineering company of repute from India. A state of the art tractor manufacturing plant for 5000 series John Deere tractors was set up at Sanaswadi, near Pune, in the state of Maharashtra. These tractors were introduced in India in early 2000.

In 2005, Deere and Company acquired nearly all the remaining shares in this joint venture. The new enterprise, John Deere Equipment Private Limited, Sanaswadi, Pune, operates through a network of 15 area offices, 4 zonal offices and 270 authorized dealers spread across the country.

The factory currently produces modern tractors of 35, 40, 42, 47, 50, 55 and 70 Hp capacities for domestic markets. Tractors manufactured in Sanaswadi are also exported to the USA, Mexico, Turkey, North and South Africa, and South East Asia. The company has received awards for export excellence in 2005 and 2006 from the Engineering Export Promotion Council.

World-Class Technology

John Deere translates the farmer's interest into superior product features through its world-class manufacturing facility at Sanaswadi, Pune.

Spread across 112 acres, the factory has a total built up area of around 50,000 sq. meters. Manufacturing is carried out at three inter-linked factories - Transmission, Engine and Vehicle Assembly.

Modern manufacturing practices like JIT, delivery of components at assembly stations and movement of tractor parts through an overhead conveyor, ensure streamlined operations. The total manufacturing effort is geared to provide total value to the customer through high quality standards.

Transmission Factory

The heart of the factory, the transmission assembly has state-of-the-art systems adopted from the best assembly practices of renowned leaders. This provides one of the finest tractor transmission systems.

The 300-odd components in the transmission system are manufactured to precise tolerances for efficient transmission of power. High precision CNC machines ensure high quality of components manufactured while CMM machines check adherence to quality standards.

Engine Factory

The engine assembly line is designed to produce one of the worlds highly fuel efficient and powerful engines.

Each station is ergonomically designed with built-in features to ensure adherence to exacting quality standards.

The engines are transported during assembly on an overhead conveyor.

A leak test at sub assembly stage and as fully assembled engine is conducted to ensure a 100% leak proof engine.

Pre-operation and post-operation online quality checks are also carried out to ensure quality. Critical joints are fastened using electric multi spindle machines capable of torque, yield and angle control.

Cleanliness of components is continuously maintained using special purpose washing machines both online as well as offline. Finally, every engine is tested for performance at the Company's Engine Test Cells which are one of the most modern in the industry.

Highly sophisticated and well-equipped Metrology and Metallurgy laboratories support the entire manufacturing operation.

Vehicle Factory

The assembly of John Deere tractors is carried out through an overhead conveyor system. This ensures high productivity through lower operator fatigue and greater convenience. Inspection loops carry out random auditing of the tractors under assembly.

Pneumatic tools and torque wrenches with designated torque for fasteners, provided at every station, ensure high reliability. And at the end of the assembly line every tractor undergoes final inspection to ensure that stringent quality standards are met.

IT at the Workplace

A high levels of computerization underlines the operations at John Deere equipment. The Company is equipped with state-of-the-art computer and communication facilities, giving it the interconnectivity and interactivity imperative in today's increasingly competitive market.

The company has implemented SAP system for sales and distribution as well as integration of manufacturing processes. Area offices, dealers, depots and C and F agents are networked to enhance efficiency and customer service.

Training is also provided periodically to employees as well as dealers to upgrade their skills and perform better.

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	Indian Rupees
US Dollar	1	Rs.40.70
UK Pound	1	Rs.77.98
Euro	1	Rs.59.02

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	---
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
TOTAL		53

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

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