MIRA INFORM REPORT

Report Date :

26.02.2008

IDENTIFICATION DETAILS

Name :	L AND T CASE EQUIPMENT PRIVATE LIMITED
Formerly Known As :	L AND T CASE INDUSTRIES 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 :	20.11.1998
Com. Reg. No.:	11-117183
CIN No.: [Company Identification No.]	U29240MH1998PTC117183
TAN No.: [Tax Deduction & Collection Account No.]	BPLL00318D / BPLL00349G / BPLL00317C
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Earthmoving Machinery.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1524768
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a joint venture of Larsen and Toubro Limited, Mumbai and Case Marutius US Limited. Available information indicates high financial responsibility of the company. Financial position is satisfactory. Payments are correct and as per commitments. The company can be considered good for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	L and T House, Ballard Estate, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22685656/ 67525656
Fax No.:	91-22-22685858/ 67525893
Email :	ltc@ppw.itindia.com
Location :	Leased
Factory :	Pithampur Works, Plot No. 157, Industrial Area, Sector III, Pithampur, District Dhar, Madhya Pradesh, India
Tel. No.:	91–7292–256302/8
Fax No.:	91–7292–256301
Location :	Owned

DIRECTORS

Name	Mr. Jagdish Pandurang Nayak
Designation	Director
Date of Birth	13.11.1943
Date of Appointment	28.09.1999
Address	Gilder House, 67-F, Bhulabhai Desai Road, Mumbai-400026, Maharashtra, India
Name	Mr. Bharat Garg (Foreign)
Designation	Director
Date of Appointment	28.09.1999
Date of Birth	27.08.1949
Address	10 Nizamuddin East, New Delhi - 110013, India
Name	Mr. Narayan V. Bhat
Designation	Director
Date of Birth	21.03.1940
Date of Appointment	12.04.2000
Address	Bangalore, Karnataka, India
Name	Mr. Krishnamoorthy S. Manjeri
Designation	Director
Date of Appointment	05.05.2001
Date of Birth	15.08.1946
Address	11 Gauri Giridhar, Pestom Sagar, Chembur, Mumbai - 400089, Maharashtra, India
Email :	msk-db@powai.ltindia.com
Name	Mr. Russell L. George (Foreign)
Designation	Director
Date of Birth	29.04.1953
Date of Appointment	18.12.2002
Address	Italy
Name	Mr. Biagio Cisotto (Foreign)
Designation	Director
Date of Birth	11.03.1943
Date of Appointment	28.03.2003
Address	Italy
Name	Mr. Amit K. Vyas
Designation	Director
Date of Birth	15.11.1967
Date of Appointment	23.04.2003
Address	Mahalaxmi, Mumbai, Maharashtra, India
Name	Mr. Sergey Alexey Diykov
Designation	Director
Date of Birth	11.11.1951
Date of Appointment	13.01.2004
Address	6939 Bennington, Dr Guanee IL – 60031, USA
Name	Mr. Antonio Aurucci
Designation	Director
Date of Birth	31.03.1970
Date of Appointment	18.03.2004
Address	S. S. 610, Selice CE – 431A, Italy
Name	Mr. Sadagopan Raghavan
Designation	Director
Date of Birth	25.03.1946
Date of Appointment	22.03.2004
Address	B-103, Krishna Vilas Apartments, 6^th Cross, Ashok Nagar, Bangalore – 560050, Karnataka, India
Name	Mr. Ananth Nayayan Mani
Designation	Director
Date of Birth	15.06.1955
Date of Appointment	13.07.2005
Address	423 Sewa Samiti Nagar, Building, 4^th Building, 2^nd Floor, Koliwada, Mumbai – 400037, Maharashtra, India
Name	Mr. Daniele Pier Ferri
Designation	Director
Date of Appointment	13.07.2005
Address	VIA BILL, 19 48018 Faenza, Italy
Name	Mr. J. P. Nayak
Designation	Director
Name	Mr. James E MC Cullough
Designation	Director
Date of Birth	27.06.1950
Date of Appointment	2306.2006
Address	W 330 S 5245, Meadowlark Lane, North Prairie, WI 53153, United State of America
Email :	Jim.mccullough@cnh.com
Name	Mr. Robert Laurence Iuppa
Designation	Director
Date of Birth	24.05.1967
Date of Appointment	23.06.2006
Address	5079 Sedona Court, Gurnee, Illinois 60031, America
Email :	robert.iuppa@cnh.com

KEY EXECUTIVES

Name :	Mr. Prasannakumar Seetharam
Designation :	Manager
Address :	Indore, Madhya Pradesh, India
Date of Birth/Age :	11^th November, 1944
Date of Appointment :	8^th December, 2001
Name :	Mr. D. K. Narang
Designation :	Chief Executive
Name :	Mr. Mohan Madan Narang
Designation :	Manager
Address :	Simran 348E – AD Sector – 74 C, Scheme, Indore
Date of Birth/Age :	21.08.1954
Date of Appointment :	01.09.204
Name :	Mr. C. R. Subdaresan S. Rajavel
Designation :	Company Secretary
Address :	No.5, 4^th Cross, Gupta Layout Ulsoor, Bangalore – 560008, Karnataka
Date of Birth/Age :	27.05.1960
Date of Appointment :	01.07.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Larsen and Turbo Limited	12005000
CNH America LLC	12005000
Total	24010000
Category	Percentage
Foreign Holding (FIIs, FCs, FFIs, NRIs, OCB)	50.00
Bodies	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Earthmoving Machinery.

Products :

Item Code No.	Product Description
3515	Earth moving equipment comprising Backhoe Loaders and Vibratory Compactors

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Earth moving machinery including Backhoe Loaders, Wheel Loaders, Compacting Machinery, Bulldozers, Angle-Dozers, Pile Excavators and Pile Drivers	Nos.	2,700 (2,700)	1,000 (1,000)	709 (696)

GENERAL INFORMATION

Suppliers :

· Chadha Industries Private Limited

· Hariom Precision Alloys (Private) Limited

· M. P. Engineering and Machine Tools

· Munchur Industries (Private) Limited

· Perfect Iron Private Limited

· Powerline Corporation

· Rapa Relays (Private) Limited

· Spepp Engineering Works

· Synchron Systems

· United Metals (India)

No. of Employees :

Around 250

Bankers :

• Bank of Baroda

Suyaganj Branch, 15-16 Jawahar Marg, IDA Building, Ground Floor, Indore – 452007, Madhya Pradesh, India

Facilities :

Figures are in Rupees Millions)

	31.03.2005	31.03.2004
Secured Loans:
From Banks
Term Loan	120.814	93.314
Cash Credit	248.890	179.398
From Others	2.996	2.166
Interest Accrued and Due	-	-
Unsecured Loans
Inter corporate Deposit	100.000	50.000

Bank Guarantees – Rs. 28.065 millions (Rs. 23.882 millions).

During the year ended 31^st March, 2002 the company purchased a ‘Laser Cutting Machine’ under the ‘Export Promotion Capital Goods Scheme’. As per the terms of license granted under the scheme, the company has undertake to achieve an export commitment of USD 1992055 over a period of 8 years. In the event the company is unable to execute its export obligations the company shall be liable to pay customs duty of Rs. 8.949 and interest on the same at the rate of 24% compounded annually.

During the year the company has taken over the marketing function of its products with effect from 1^st July 2004 from Larsen and Toubro Limited, sole selling agent of the company till that date. Hence, expenses for the current year under various heads include expenses relating to marketing and selling activities. According, the same are not compared with previous year. The takeover of the marketing function, all current assets and current liabilities pertaining the marketing operations have been taken over from Larsen and Toubro Limited at a net sum of Rs. 4.145 Millions for handling the sales of the company’s products.

Secured Loans

Terms loans from banks are secured by hypothecation of the plant and machinery and equitable mortgage of factory land and building.

Cash credit facilities with banks are secured by hypothecation of inventories and book debts.

Leases

The company acquired motor vehicles/ computers under lease from a finance company. Future minimum lease payments under this finance lease as of 31^st March, 2005 are as follows.

	Due within 1 year	Due between 1 to 5 years	Total amount due
Minimum lease payments	1.024	2.992	4.016
Less: amount representing interest	0.395	0.625	1.020
Present value of minimum lease	0.628	2.367	2.995

Banking Relations :	Good
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	5^th Floor, Dr. Gopal Das Bhavan, 28, Barakhamba Road, New Delhi 110001, India
Tel. No.:	91-11-23356902
Name :	Jitendra Agarwal Chartered Accountant
Address :	Deloitte Haskins and Sells, MCT House, One Okhla Centre, Block A, Okhla Industrial Area, New Delhi – 110025, India
Associates/Subsidiaries :	L and T Komatsu Limited L and T – Equipment Leasing Company Limited L and T – Finance Limited Case Corporation, USA L and T – Infotech Limited New Holland Italia SpA, Italy New Holland Tractors Limited New Holland UK Limited JI Case Do Brasil and CIA L and T Limited Case LLC, U.S.A.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs. 10/- each	Rs. 300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24010000	Equity Shares	Rs. 10/- each	Rs. 240.100 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		240.100	240.100	240.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		141.092	0.000	0.000
4] (Accumulated Losses)		0.000	(4.257)	(12.734)
NETWORTH		381.192	235.843	227.366
LOAN FUNDS
1] Secured Loans		263.768	408.040	372.700
2] Unsecured Loans		100.000	100.000	100.000
TOTAL BORROWING		363.768	508.040	472.700
DEFERRED TAX LIABILITIES		20.985	7.268	1.324
TOTAL		765.945	751.151	701.390
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		222.090	252.352	291.832
Capital work-in-progress		0.619	0.150	0.137
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	516.040	363.976	268.854
	Sundry Debtors	875.307	588.954	419.276
	Cash & Bank Balances	10.156	14.362	43.420
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	62.443	56.276	40.012
Total Current Assets		1463.946	1023.568	771.562
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	853.088	518.646	371.648
	Provisions	71.724	13.009	0.000
Total Current Liabilities		924.812	531.655	371.648
Net Current Assets		539.134	491.913	399.914
MISCELLANEOUS EXPENSES		4.102	6.736	9.507
TOTAL		765.945	751.151	701.390

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		3237.496	1770.391	1230.235
Other Income		0.000	0.000	0.000
Total Income		3237.496	1770.391	1230.235
Profit/(Loss) Before Tax		233.171	17.664	(61.393)
Provision for Taxation		0.000	0.000	22.558
Profit/(Loss) After Tax		233.171	17.664	(38.835)
Export Value		22.205	16.138	24.656
Import Value		NA	NA	274.741
Expenditures :
	Interests	46.419	40.735	0.000
	Depreciation & Amortization	45.577	44.344	0.000
	Other Expenditure	2912.329	1667.648	1291.629
Total Expenditure		3004.325	1752.727	1291.629

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	7.20	0.99	(3.15)
Net Profit Margin (PBT/Sales)	(%)	7.20	0.99	(4.99)
Return on Total Assets (PBT/Total Assets}	(%)	13.83	1.38	(5.77)
Return on Investment (ROI) (PBT/Networth)		0.61	0.07	(0.27)
Debt Equity Ratio (Total Liability/Networth)		3.38	4.41	4.72
Current Ratio (Current Asset/Current Liability)		1.58	1.92	2.08

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 20^th November, 1998 at Mumbai in Maharashtra having Company Registration Number 117183.

The company formerly known as L and T case Industries Private Limited was incorporated as a joint venture between Larsen and Toubro Limited (L and T) and Case Marutius US Limited (a subsidiary of Case Corporation, USA), with equal equity stakes of 50%. On October 1, 1999 the company acquired the earth moving equipment manufacturing business of L and T at Pithampur, as a going concern and commenced commercial operations.

The company is primarily engaged in the manufacture of earth moving equipments, comprising Backhoe Loaders and Vibratory Compactors, at its facility in Pithampur, near Indore.

Subsequent to the promulgation of the Companies, Amendment Act, 2000, the company had ceased to be a deemed public company under section 43 A of the Companies Act, 1956, and pursuant to the approval of its application by the Registrar of Companies on December 13, 2001 changed its status to a private company and its name to subject.

Segment Reporting

The company is engaged in the business of manufacture and sale of earth moving equipment, primarily in India. The significant products of the company comprise Backhoe Loaders and Vibratory Compactors.

Research and Development

Specific areas in which R and D carried out by the Company

· Designing, testing of prototype and manufacturing of new version 580-3S model.

· Development of Rock breaker attachment with air filling system for 851 models.

· Development of extend hoe version of 580-3S model.

· Development of bottom dump bucket for 580-3S and 851 models.

Benefits derived as a result of above R and D

· Upgraded version of 76 hp 580-3S model introduced. This has improved reliability, reduced assembly time and helped to cater wider market segments.

· With alternative attachments developed for loader backhoe and compactors has increased customer base.

The company is in trade terms with: -

· AM Industries

· Chetak Auto Engineering Products Private Limited

· Mayoor Pressing Private Limited

· MP Engineering and Machine Tools

· NCM Shova Engineers Private Limited

· Rakesh Industries

· Shaktiman Auto Fabricators

· Synchrom Systems

· Ganson Heat Transfer

· Larsen and Toubro Limited

· CNH America, LLC

Fixed assets

• Buildings,
• Plant and machinery
• Electrical installation,
• Furniture and fittings
• Office equipment
• Vehicles and
• Computers

Form 8:

Corporate identity number (CIN) Foreign company registration number	U29240MH1998PTC117183
Name of the Company	L AND T CASE EQUIPMENT PRIVATE LIMITED
Address	L and T House, Ballard Estate, Mumbai – 400 001, Maharashtra, India
This form is for	Creation of Charge
Type of Charge	Movable Property (not being pledge)
Particulars of the charge holder	Bank of Baroda Suyaganj Branch, 15-16 Jawahar Marg, IDA Building, Ground Floor, Indore – 452007, Madhya Pradesh, India siyaga@bankofbaroda.com
Nature or description of the instrument(s) creating or modifying the charge	Composite Hypothecation Agreement
Date of the instrument creating or modifying the charge	08.11.2006
Amount secured by the charge	Rs.510.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interests: On Term Loan I and II Working Capital (WCDL and CC) – 1.50% Below BPLR Presently @ 10% p.a. with monthly rest Commission on LC and Bank Guarantee- 50% on usual charges as existing Terms of Repayment: Term Loan I and II as per existing schedule Working Capital on demand Bank Guarantee and LC – On Demand (to be reviewed in 12 months) Margin: Term Loan I: 12% Term Loan II: 62.50% Working Capital (WCDL and CC) 25% LC: 5% in the form of FD Bank Guarantee: 5% in the form of FD subject to the proviso that for Guarantee against disputed liability it would be 100% Extent and operation of the charge: As per Agreements: Total Credit Facilities of Rs.510.000 Millions provided by the Bank as under: Term Loan I Rs.7.500 Millions Term Loam II Rs.12.500 Millions Working Capital (WCDL and CC) Rs.350.000 Millions LC: Rs.90.000 Millions Foreign/ Inland Guarantee Rs.50.000 Millions Others: The Borrower has executed a composite deed for entire credit facilities of Rs.510.000 Millions to cover all the existing borrowing of Bank and the borrower shall be entitled to get satisfaction of all existing charges of Bank registered with the ROC after registration the present charge.
Short particulars of the property charged (including location of the property)	Term Loan I and II: Hypothecation of P and M with extension of charge on current assets. WCDL and CC, LC and Bank Guarantee Hypothecation of Stocks, HR Sheets, Plates, Earth Moving Machinery of Various types, loose tools etc. along with packing material and stores etc. situated at Plot No.157, Industrial Area III Pithampur, District Dhar (Madhya Pradesh) and Equitable Mortgage by deposit of title deeds of land with building and structures at plot No.157, Industrial Area III Pithampur, District Dhar (Madhya Pradesh)
Particular of the present modification	N.A.

Name of the company	L AND T CASE EQUIPMENT PRIVATE LIMITED
Presented By	L AND T CASE EQUIPMENT PRIVATE LIMITED and Bank of Baroda, Indore
1) Date and description of instrument creating the change	Instrument of Hypothecation of Machinery dated 18.11.1999 to secure term loan of Rs.155.000 Millions Instrument of Hypothecation of goods and Hypothecation of Book debts both dated 18.11.1999 (constituting a single charge) to secure cash credit limit and working capital demand loan of Rs.194.000 Millions Instrument of Hypothecation of Goods and Book debts both dated 18.11.1999 (constituting a single charge) to secure term loan of Rs.155.000 Millions, Bank guarantee Rs.15.000 Millions and Letter of Credit for Rs.10.000 Millions issued on behalf of the company. Instrument of Hypothecation of Machinery dated 18.11.1999 to secure cash credit, working capital demand Loan for Rs.194.000 Millions, Bank guarantee Rs.15.000 Millions and Letter of Credit for Rs.10.000 Millions issued on behalf of the company. Supplemental Composite Instrument of Hypothecation of Goods, Book debts, Machinery dated 07.12.2001 to revise Term loan to Rs.166.600 Millions Cash Credit, working Capital Demand Loan, Bank guarantee Rs.20.000 Millions and Letter of Credit for Rs.30.000 Millions issued on behalf of the company.
2) Amount secured by the charge/amount owing on the securities of charge	Term Loan of Rs.166.600 Millions Cash Credit Limit of Rs.194.000 Millions Letter of Credit Rs.30.000 Millions Bank Guarantee Rs.20.000 Millions
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	Plant and Machinery located at Plot No.157, Industrial Area Pithampur District Dhar (Madhya Pradesh) Stocks of raw material stock in process, finished goods, consumable Stores and spares Book debts
4) Gist of the terms and conditions and extent and operation of the charge.	The charge is created for securing: Term Loan of Rs.166.600 Millions Cash Credit Limit of Rs.194.000 Millions Letter of Credit Rs.30.000 Millions Bank Guarantee Rs.20.000 Millions
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda Siyaganj Branch Indore
6) Date and brief description of instrument modifying the charge	Supplemental Composite Instrument of Hypothecation of Goods, Book debts, Movable Machinery dated 22^nd January, 2002
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 charge is to include Rs.20.000 Millions as Adhoc Cash Credit Limit in additional to the following: Term Loan Of Rs.166.600 Millions Cash Credit Limit of Rs.194.000 Millions Letter of Credit Rs.30.000 Millions Bank Guarantee Rs.20.000 Millions

Name of the company	L AND T CASE EQUIPMENT PRIVATE LIMITED
Presented By	L AND T CASE EQUIPMENT PRIVATE LIMITED and IDBI Bank Limited
1) Date and description of instrument creating the change	Individual Facility Sanction Letter – Modification (IFSL-M) Dated 24.06.2004, Facility Agreement Dated 30^th June 2004 and Term Loan Acceptance Letter, Entered with IDBI Bank Limited
2) Amount secured by the charge/amount owing on the securities of charge	The charge is to secure Term Loan of Rs.70.000 Millions from IDBI Bank Limited A B Road, Indore, Madhya Pradesh
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	Plant and Machinery located at Plot No.157, Industrial Area Pithampur District Dhar (Madhya Pradesh) Stocks of raw material stock in process, finished goods, consumable Stores and spares Book debts
4) Gist of the terms and conditions and extent and operation of the charge.	The Charge Creation for securing Term Loan of Rs.70.000 Millions from IDBI Bank Limited A B Road, Indore, Madhya Pradesh
5) Name and Address and description of the person entitled to the charge.	I D B I Bank Limited Alankar Chamber, A B Road, Indore, Madhya Pradesh
6) Date and brief description of instrument modifying the charge	Nil
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.	Nil

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	Indian Rupees
US Dollar	1	Rs.40.05
UK Pound	1	Rs.78.75
Euro	1	Rs.59.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.	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