MIRA INFORM REPORT

Report Date :

10.05.2008

IDENTIFICATION DETAILS

Name :	EPCOS INDIA PRIVATE LIMITED
Formerly Known As :	EPCOS FERRITES PRIVATE LIMITED
Registered Office :	Kulia Kanchapara Road, Netaji Subhash Sanatorium, Kalyani, Nadia – 741251, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	08.11.1976
Com. Reg. No.:	21-30763
CIN No.: [Company Identification No.]	U92131WB1976PTC030763
TAN No.: [Tax Deduction & Collection Account No.]	NSKE00321G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Capacitors, Solar Modules, Metallised Film Capacitors, etc.

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 2100000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Company’s profitability is improving and is expected to wipe-off its previous losses 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 :	Kulia Kanchapara Road, Netaji Subhash Sanatorium, Kalyani, Nadia – 741251, West Bengal, India
Tel. No.	91-253-2205103/2353756 – 60/25891410
Cell.	91-9822018259
Fax No.	91-253-2353761/25891418
E-Mail	hs.banerjee@epcos.com aniruddha.patil@epcos.com nilanjan.ghatak@epcos.com
Website	http://www.epcos.com
Area :	800 sq. ft.
Location :	Owned
Factory 1 :	Plot No. E-22/25, MIDC Industrial Area, Satpur, Nasik – 422 007, Maharashtra
Area :	24000 sq. mtrs.
Location :	Owned
Branches :	Located at : Ø New Delhi Ø Kolkata, West Bengal Ø Mumbai, Maharashtra Ø Bangalore, Karnataka

DIRECTORS

Name :	Mr. Tushar Kanta Misra
Designation :	Whole-Time Director
Address	217-A, Kedar Gouri Road, Bubneshwar – 751 002, Orissa
Date of Birth	25.09.1936
Date of Appointment :	30.09.2002
Name :	Mr. Gerhard Pegam
Designation :	Director
Address	Care : EPCOS AG St. Martin Street, 53 Munich 81669
Date of Birth	31.01.1962
Date of Appointment :	18.05.2006
Name :	Mr. Hari Shankar Banerjee
Designation :	Director
Address	Plot No. 18-19, Survey No. 48/2/2 at Anandwali, Near Pai Colony, Gangapur Road, Nasik, Maharashtra
Date of Birth	05.07.1958
Date of Appointment :	22.02.2001
Name :	Mr. Jayesh Thakkar
Designation :	Manager (Accounts and Finance)
Name :	Mr. Natrajan Balakrishnan
Designation :	Whole-Time Director
Address	A 804, Mantri Elegance, N S Palya, Banerghatta Road, Bangalore – 560076, Karnataka, India Balakrishnan.natarajan@epcos.com
Name :	Mr. Ambernath Sinha
Designation :	Managing Director
Address	Flat No. E4-F4 Rajdanga Aswini, Nilachal Housing Kolkata 700078, West Bengal, India
Date of Birth	18.11.1948
Date of Appointment :	31.03.1996
Name :	Mr. Manoj Chaturvedi
Designation :	Director
Address	EPCOS India Private Limited, 84 Keonics Electronic City, Hosur Road, Bangalore – 561229, Karnataka, India
Date of Birth	20.04.1942
Date of Appointment :	12.12.1998
Name :	Mr. Valter Emmanuel
Designation :	Additional Director
Address	Schoenbrunner, Graben 6 1180 Wien, Austria
Date of Birth	03.10.1963
Date of Appointment :	30.09.2004

KEY EXECUTIVES

Name :	Mr. Aniruddha Anil Patil
Designation :	Secretary
Date of Birth	13.05.1976
Date of Appointment :	18.05.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2007

Names of Shareholders	No. of Shares
EPCOS AG	88601337
EPCOS AG Jointly with EPCOS Electronic Components S. A., Spain	42
TOTAL	88601379

AS ON 30.09.2007

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Capacitors, Solar Modules, Metallised Film Capacitors, etc.

Products :

Item Code No.	Product Description
8532	Metallised Film Capacitors
8541	Solar Cell Modules

Brand Name :

“EPCOS”

Exports to :

Germany, Spain, Singapore and Hong Kong

(Metallised Film Capacitors)

Imports from :

Germany and Korea

(Plain Polypropylene Films and Plastic Boxes)

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
AC Capacitors	Nos.	1,04,20,000	89,30,000
DC Capacitors	Nos.	18,00,00,000	12,73,59,000
Metallised Film	Kgs.	9,00,000	6,17,000

GENERAL INFORMATION

Suppliers :

Ø Aee Polybond Private Limited

Ø Akik Insupack

Ø Anmol Package Private Limited

Ø Anu Enterprises

Ø Bharat Products

Ø Bijutkar Plastomould

Ø Cermet Resistronis Private Limited

Ø D.D.Packers private Limited

Ø Desai Packwell Private Limited

Ø Electro Crimp Contact private Limited

Ø Electro Lead

Ø Icon Industries

Ø Impact Packaging

Ø Khosla Engineers Private Limited

Ø Linko Servo System Private Limited

Ø Mallya Enterprises

Ø Patil Engineering Works

No. of Employees :

660

Bankers :

Deutsche Bank

Hazarimal Somani Marg, Near Sterling Cinema, Fort, Mumbai – 400 001, Maharashtra

(The company enjoys Credit Limits facility of Rs. 800.000 millions from its’ bankers)

Citi Bank

2413, Kumar Capital, East Street, Camp, Pune – 411 001, Maharashtra

(The company enjoys Credit Limits facility of Rs. 600.000 millions from its’ bankers)

The Hongkong and Shanghai Banking Corporation Limited

‘Hongkong Bank’, 31 B D Bag, Kolkata – 700001, West Bengal, India

Facilities :

Secured Loan	30.09.2004 (Rs. in million)
From Banks
Overdraft	--
Short term loan	50.000
Total	50.000
Unsecured Loan
External commercial borrowing from EPCOS AG	479.3720
Bank Overdraft	74.952
Sales Tax Deferred	12.646
Total	567.318

Banking Relations :

Satisfactory

Auditors :

Bharat S. Raut and Associates

Chartered Accountants

Address:

703, 7^th Floor, Godrej Castlemaine, Next to Ruby Hall Clinic, Bund Garden Road, Pune – 411001, Maharashtra, India

Tel. No.:

91-22-24913132/2491 3030

Fax No.:

91-22-24913132

Associates/Subsidiaries :

Ø Siemens Limited

Address: Mumbai, Maharashtra

Ø EPCOS Inc ISELING, USA

Ø EPCOS AG Germany

Ø EPCOS Electronic Components, Malaga, Spain

Ø EPCOS Do Brasil Limited

Ø EPCOS SAS France

Ø EPCOS s.r.o.,Czech Republic

Ø EPCOS Zhuhai Company. Limited., China

Ø EPCOS Zhuhai (FTZ) Company. Limited., China

Ø EPCOS Pte Ltd., Singapore

Ø EPCOS Elektronikai Alkatresz Kft., Hungary

Ø EPCOS Limited, Hong Kong

Ø EPCOS Inc., Iselin, USA

Ø EPCOS OHG Deutschlandberg, Austria

Ø Erstwhile EPCOS India Private Limited (up to 31 March 2005)

Joint Venture :

Ø Siemens Matsushita Components GmbH & Company KG., Germany

Ø Asian Electronics Limited, Mumbai, Maharashtra, India

Ø Siemens Matsushita Components S. A., Spain

Ø Siemens Solar Industries, California, USA

Ø Siemens Limited, Mumbai, Maharashtra, India

Holding Company :

EPCOS AG, Germany

CAPITAL STRUCTURE

AS ON 30.09.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
90000000	Equity Shares	Rs. 10/- each	Rs. 900.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
88601379	Equity Shares	Rs. 10/- each	Rs. 886.014 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		01.04.2006 to 31.03.2007	01.10.2004 to 31.03.2006	30.09.2004
SHAREHOLDERS FUNDS
1] Share Capital		886.014	109.764	433.553
2] Share Application Money		0.000	480.000	0.000
3] Reserves & Surplus		0.000	2.577	2.913
4] (Accumulated Losses)		[20.475]	(71.060)	[217.122]
NETWORTH		865.539	521.281	219.344
LOAN FUNDS
1] Secured Loans		461.412	632.837	66.779
2] Unsecured Loans		1454.218	1572.737	1126.115
TOTAL BORROWING		1915.630	2205.574	1192.894
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2781.169	2726.855	1412.238
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1731.503	1722.636	1110.219
Capital work-in-progress		86.700	144.979	18.053
INVESTMENT		0.000	0.010	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	480.615	463.082	133.886
	Sundry Debtors	654.326	528.703	146.939
	Cash & Bank Balances	85.279	81.933	51.683
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	424.785	425.250	98.023
Total Current Assets		1645.005	1498.968	430.531
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	646.046	591.093	135.513
	Provisions	35.993	48.645	11.052
Total Current Liabilities		682.039	639.738	146.565
Net Current Assets		962.966	859.230	283.966
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2781.169	2726.855	1412.238

PROFIT & LOSS ACCOUNT

PARTICULARS		01.04.2006 to 31.03.2007	01.10.2004 to 31.03.2006	30.09.2004
Sales Turnover		2960.799	2710.020	735.889
Profit/(Loss) Before Tax		60.952	[192.265]	[166.688]
Provision for Taxation		10.367	[33.957]	[8.833]
Profit/(Loss) After Tax		50.585	[158.308]	[157.855]
Export Value		1731.451	1543.675	542.189
Import Value		944.150	956.760	224.748
Expenditures :
	Depreciation	305.213	353.733	93.772
	Other Expenses	2594.634	2548.552	808.805
Total Expenditure		2899.847	2902.285	902.577

KEY RATIOS

PARTICULARS		01.04.2006 to 31.03.2007	01.10.2004 to 31.03.2006	30.09.2004
PAT / Total Income	(%)	1.71	[5.84]	[21.75]
Net Profit Margin (PBT/Sales)	(%)	2.06	[7.09]	[22.65]
Return on Total Assets (PBT/Total Assets}	(%)	1.81	[5.97]	[10.82]
Return on Investment (ROI) (PBT/Networth)		0.07	[0.37]	[0.76]
Debt Equity Ratio (Total Liability/Networth)		3.00	5.46	6.11
Current Ratio (Current Asset/Current Liability)		2.41	2.34	2.94

LOCAL AGENCY FURTHER INFORMATION

Form 8

This form is for	Modification of charge
Charge identification number of the modified	80034970
Corporate identity number of the company	U92131WB1976PTC030763
Name of the company	EPCOS INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Kulia Kanchapara Road, Netaji Subhash Sanatorium, Kalyani, Nadia – 741251, West Bengal
Type of charge	Book Debts
Particular of charge holder	The Hongkong and Shanghai Banking Corporation Limited ‘Hongkong Bank’, 31 B D Bag, Kolkata – 700001, West Bengal, India mohanmotwani@hsbc.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental agreement dated 22.08.2007 executed by the company in favour of the bank
Date of instrument Creating the charge	24.08.2007
Amount secured by the charge	Rs. 400.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest as per the bank’s prima lending rate, shall be payable by the Company on the banking facilities, subject however that the bank shall have the right to change the rate of interest after giving notice to the company. commission to be paid by the company in respect of letter of credit and other as per tariff of HSBC and / or as per Reserve bank of India Guidelines. Terms of Repayment Repayable on demand Margin The company shall maintain such margin as may be specified by the bank from time to time. In case the company fails to fulfill its obligation under the agreement, the bank shall be entitled to take possession of the hypothecated assets and sell them by public auction or private contract and utilize the proceeds in full or part settlement of its claims. Extent and Operation of the charge The company hypothecated its entire stock of raw materials, book debts both present and future by way of first charge to secure credit facilities upto the aggregate limit of Rs. 400.000 Millions together with interest thereon and all other moneys payable there under ranking pari passu with the first hypothecation and chare created and to be created in favour of the other working capital Banks.
Short particulars of the property charged	All the company’s stock and book debts both present and future whether stored in the Company’s premises or with Company’s Agents or representatives or held in any bonded Godown or warehouse at Kolkata or where so ever in the Republic of India and/ or in transit / awaiting transit by ship, rail or otherwise and whole of moveable assets including plant and machinery, other moveable both present and future are now lying or stored anywhere in India.
Particulars of the present modification	By the supplemental dated 24.08.2007 executed by the company, the bank has increased the limit from Rs. 250.000 Millions to Rs. 400.000 Millions and in consideration thereof, the company extended the first and exclusive pari passu charge over entire current assets together with interest, additional and / or compound interest if any, in the form of liquidated damages, costs, charges and expenses payable or to become payable by the company to the bank.

HISTORY:

The company was promoted by Siemens Matsushita, Germany (70% holding) and Asian Electronics Limited, India (30% holding).

BUSINESS:

The company is engaged in manufacturing and exporting of AC Capacitors, DC Capacitors, Power Factor Correction, KVAR, Solar Modules, Metallised Film Capacitors, etc.

The company is in trade terms with:-

Ø EPCOS AG, Germany

Ø EPCOS Electronics Components, S. A.

Ø EPCOS Pte Limited

Ø EPCOS Limited

Ø Tibrewala Electronics Limited

6-56/2/40, Bombay Highway, Balanagar,

Hyderabad – 500 037, Andhra Pradesh

Tel. 91-40-23775351

Contact Person – Mr. B. Mitra

Ø Adtec Electronics Private Limited

No. 113, 3^rd Cross, 1^st Phase,

Mico Arakere Layout,

Bangalore – 560 076, Karnataka

Contact Person – Mr. H. K. Sharma

Ø Bollore

31-32, Quai De Dion-Bouton-92811,

Putevux Codex, France

Ø Steiner GmbH Company KG

Industriegebiet Jagersgrund Postfatch 70,

D-57335, Erndtebruck, Germany

Ø Trespaphan GmbH

Bergstrasse, D-66539,

Neunkirchen, Germany

Fixed Assets:

Ø Land

Ø Building

Ø Plant And Machinery

Ø Computers

Ø Telex

Ø Fax Machine

Ø Telephone

Ø Xerox Machine

Ø Air Conditioner

Ø Office Equipment

Ø Vehicles

Ø Furniture & Fixtures.

Background of Company

EPCOS India Private Limited (formerly known as EPCOS Ferrites Private Limited) (‘the Company’) was incorporated on 8 November 1976 The entire share capital is held by EPCOS AG, Germany (‘the holding company’).

In accordance with the scheme of amalgamation approved by the high courts on 5 May 2006, EPCOS India Private Limited (hereinafter referred to as ‘erstwhile EPCOS India Private Limited’) was amalgamated with the Company retrospectively with effect from 1 April 2005 The erstwhile EPCOS India Private Limited was a wholly owned subsidiary of EPCOS AG. Subsequent to the amalgamation, the amalgamated company was renamed as EPCOS India Private Limited on 22 May 2006.

The amalgamated company is organized into the following businesses:

Ferrites (hereinafter referred to as ‘the Ferrites division’) - The Ferrites division is located at Kalyani and is engaged in the manufacturing of ferrite cores. Capacitors (hereinafter referred to as ‘the Capacitors division’) – This represents the business carried out by the erstwhile EPCOS India Private Limited. The capacitors division is located at Nashik and is engaged in the manufacturing of metallized plastic film capacitors and metallized plastic film. The Company’s products are sold in the domestic as well as export markets. Additionally, the Company is also engaged in trading in products procured from its group companies and procuring orders for them on commission basis in the domestic market. The marketing headquarters of the Company is located in Bangalore and it has two sales offices located in Mumbai and New Delhi

Summary of significant accounting policies

The company manufactures metallised plastic film capacitors and metallised plastic film at its manufacturing facilities at Nashik near Mumbai. The company has two Domestic Tariff Units and also a 100% Export Oriented Unit for manufacturing capacitors. The company sells metallised plastic film capacitors and metallised plastic film both in the domestic and export markets.

Use of estimates

The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results may differ from those estimates. Any revisions to accounting estimates are recognized prospectively in current and future periods.

Fixed Assets and Depreciation

Fixed Assets are stated at cost less accumulated depreciation. Cost includes inward freight, duties, taxes and incidental expenses related to the acquisition, construction and installation of the fixed assets. Cost of acquisition includes exchange differences (favorable as well as unfavorable) arising on restatement of foreign exchange payables specifically for acquiring imported fixed assets.

Land has been acquired on lease for a period of 99 years and is not depreciated as this is deemed ownership. Depreciation on fixed assets is provide on the straight-line method of depreciation pro-data to the period of use, at the rates which are higher than the corresponding rates prescribed in schedule XIV to the Companies Act, 1956.

Primary segment reporting

The company’s business segments are organized around product lines as under:

DC capacitors are capacitors made with metalized plastic film. Plastic film is the dielectric. These are of various capacitance values with different voltage rationg and sizes. These are generally smaller in size and mostly used in DC circuits but could also be used in various different applications

Power capacitors and film segment consists of capacitors again with metallized plastic film mostly polypropylene with self-healing properties. These are comparatively large in size and have higher capacitance values and voltages. This segment also includes power factor correction products.

The company also sells the products of its group company in India viz. EPCOS Ferrites Limited in the Local Market. It also provides marketing services to its overseas parent and group companies for the local market in consideration of agency commission. These are included as “Others”

WEBSITE DETAILS:

Company Profile

Wherever there's electronics, there's Company

Did you know that one single notebook, for example, contains some 200 passive electronic components, and another 200 are found in a state-of-the-art mobile phone? Conventional color TV sets are equipped with some 400 passive components and up to 10,000 are installed in a luxury car.

Inconspicuous but indispensable, they store electrical energy, select frequencies, and protect against over voltage and over current in countless applications – from rail traction to automotive ignition systems, from electric light and power supplies to voice and data transmission. Almost imperceptibly, you encounter them tens of thousands of times a day, both at home and at work.

Company develops, manufactures and markets electronic components, and focuses on leading-edge technology markets: automotive, industrial and consumer electronics as well as information and communications. These industries present sound prospects for medium to long-term growth.

About Company

Company emerged from Siemens Matsushita Components, a joint venture founded in 1989 by Siemens and Matsushita. Since COMPANY went public on October 15, 1999, both former parent companies have remained important shareholders, each holding 12.5% of equity. COMPANY was floated on the Frankfurt and New York Stock exchanges simultaneously. Since March 2003, COMPANY has been one of the largest companies in the new Tec Dax index of technology stocks.

Product range

Company manufactures over 40,000 products, comprising a range of passive electronic components whose extent is unique on the market. It can thus offer its customers products and solutions from a single source. Whether surface acoustic wave components, capacitors, ceramic components, or inductors and ferrites – COMPANY offers unrivaled performance for electronics applications.

Profit-oriented growth strategy

Their goal is to earn sustained profits and keep enhancing shareholder value. To do this, they intend to occupy a leading position in all their fields of business and to grow faster than their competitors.

To this end, Company is pursuing a strategy of profitable growth. It is based on competence in technology and driven by permanent optimization of quality, of innovation, and of the costs of their products and services. They are focusing on fast-growing, innovative sectors of their markets. They are therefore stepping up their presence, primarily in Asia and especially in China, without neglecting their European home market. As the world's leading broad liner with a portfolio of about 40,000 different standard and customer-specific products, COMPANY offers one-stop shopping for all passive electronic components. This enables them to keep strengthening their positions in the globalized markets of information and communications, and automotive, industrial and consumer electronics.

They are open to cooperation with partners. They want their customers to see them as their most reliable and innovative partner for development of their new products.

Business Segments

Capacitors

Capacitors store electric charges to filter or regulate current and voltage in electronic circuitry.

SAW Components

Surface acoustic wave (SAW) components are key components of modern information and communications. Company SAW Components segment is the undisputed world market leader.

Ceramic Components

Ceramic components are indispensable in automotive and entertainment electronics as well as in domestic appliances and telecommunications.

Inductors and Ferrites

Inductors are indispensable components in nearly all electronic equipment and systems.

They focus on leading-edge technology markets: automotive, industrial and consumer electronics as well as information and communications. These industries present sound prospects for medium to long-term growth.

Industries once as separate and distinct as telecommunications, entertainment electronics and computers are converging relentlessly. This convergence is giving rise to a constant stream of innovative products, such as mobile phones with integrated cameras and Internet access.

In their traditional target markets, the proliferation and complexity of electronic control systems are fueling an insatiable demand for components. In domestic appliances, for example, conventional electromechanical systems are being progressively replaced by electronics. Electronics drives nine out of ten innovations in the automobile industry today. And these innovations in turn drive the technologies of other industries.

Quality

No compromises

With its quality management (QM) system and a company-wide zero-defect campaign based on Six Sigma methodology, Company is consistently improving the quality of its processes and process mastery - and thus the quality of its products. Numerous awards presented to COMPANY testify to customers' satisfaction with this rigorous approach to quality.

Tougher demands for quality are today being passed along the entire production chain. The toughest are made by the automobile industry. But higher quality standards also apply in the other key markets served by company, such as information and communications, industrial and consumer electronics.

Automotive electronics manufacturers and vehicle manufacturers in particular insist that their suppliers have comprehensive QM systems in place that are geared to total process mastery. These demands are reflected in international quality assurance standards such as ISO 9001 and the ISO TS 16949 standard derived from it with specific requirements of the automobile industry.

It is a principle of the company' quality policy that the QM system must satisfy the most demanding international standard applicable. Certification of the entire COMPANY Group was therefore tackled on the basis of ISO/TS 16949 in 2003 and completed in February 2004. The COMPANY QM system is constantly being reviewed and systematically refined within the company, because uncompromising quality means a never-ending process of improvement.

Six Sigma at Company

Six Sigma methodology is being introduced throughout the COMPANY Group as part of its COMPETE program (cost management, process excellence, time efficiency). Six Sigma aims to make processes more reproducible, reduce variation, cut costs and ensure quality. Mastery of processes is the key to economic success. It is the only way to provide products and services that deliver the highest quality and total customer satisfaction.

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 :

The 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.

The 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. 41.38
UK Pound	1	Rs. 80.76
Euro	1	Rs. 63.89

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		51

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, they have no basis upon which to recommend credit dealings	No Rating

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