MIRA INFORM REPORT

Report Date :

21.11.2008

IDENTIFICATION DETAILS

Name :	OWENS CORNING (INDIA) LIMITED

Registered Office :	Mahindra Towers, Ground Floor, Road No. 13, Worli, Mumbai – 400 018, Maharashtra

Country :	India

Financials (as on) :	31.03.2007

Date of Incorporation :	05.07.1995

Com. Reg. No.:	11-124707

CIN No.: [Company Identification No.]	U73100MH1995PLC124707

TAN No.: [Tax Deduction & Collection Account No.]	MUMO01785A

Legal Form :	It is a closely held public limited liability company. Subject is a subsidiary of Owens Corning, USA & IPM Inc., USA.

Line of Business :	Manufacturing and Trading of Roofing Products, Commercial Roofing, Insulation Foam, Asphalt, Fibre Glass, Yarn Textile, Rovings and Mats, etc.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 9120000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and reputed company having fine track. Directors are reported as experienced and respectable businessmen. Trade relations are fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long-run.

LOCATIONS

Registered Office :	Mahindra Towers, Ground Floor, Road No. 13, Worli, Mumbai – 400 018, Maharashtra, India
Tel. No.:	91-22-2839 8250/ 56681700
Fax No.:	91-22-2839 8251
E-Mail :	shrikant.mate@owenscornin.com , appaswamy@owenscorning.com
Location :	Owned

Corporate Office :	301-310, A Wing, Bonanza, Sahar Plaza Complex, M. V. Road, Andheri (East), Mumbai - 400 059, Maharashtra, India
Tel. No.:	91-22-28398250
Fax No.:	91-22-28398251
Location :	Owned

Factory 1 :	Plot No. T 28, MIDC, Phase 2, Taloja, District Raigad, Maharashtra, India
Location :	Owned

Branches :	Located at: New Delhi and Mumbai

DIRECTORS

Name	Mr. Raj Kumar Pitamber
Designation	Director
Date of Birth	25.09.1940
Address	Windsor Villa West, Field Estate, Bhulabhai Desai Road, Mumbai – 400 006
Date of Appointment	07.01.1997

Name	Mr. Satish G. Kulkarni
Designation	Managing Director
Address	203, Panju Mahal. B. J. Road, Bandstand, Bandra (West), Mumbai – 400 050
Date of Birth	24.10.1955

Name	Mr. Santosh Senapati
Designation	Director
Address	72C, Grand Paradi, Dady Seth Hill, August Kranti Marg, Mumbai
Date of Birth	03.04.1964
Date of Appointment	28.10.1999

Name	Mr. Arun K. Nanda
Designation	Director
Address	3, St. Helens Court Road, Gopal Rao Deshmukh Marg, Mumbai
Date of Birth	13.03.1949
Date of Appointment	15.04.1999

Name	Mr. Steven J. Strobel (Foreign)
Designation	Director
Address	2606, Westchester, Toledo, Ohio 43615, USA
Date of Birth	12.07.1957
Date of Appointment	22.02.2000

Name	Mr. Charles E. Dana (Foreign)
Designation	Director
Address	2646, Forest Vale, Toledo, Ohio, USA
Date of Birth	25.07.1955
Date of Appointment	22.02.2000

Name	Mr. James S. Balaszczyk (Foreign)
Designation	Director
Address	Owens Corning Korea, 17^th Floor, Donguon, Securities Bldg., 34-7, Yoida Dong, Yong Dunpe Ke Seoul – 150010, Korea
Date of Birth	09.09.1955
Date of Appointment	09.12.2002

Name	Mr. Rogerfields (Foreign)
Designation	Alternate Director
Address	Owens Corning Who, Toledo, USA
Date of Appointment	09.12.2002

Name	Mr. Richard Dale Lantz (Foreign)
Designation	Alternate Director
Address	875, Big Express Circle, Sylvania Ohio, USA – 43560
Date of Birth	29.10.1951
Date of Appointment	09.12.2002

Name	Mr. Satish G Kulkarni
Designation	Managing Director
Address	203, Panju Mahal, B J Road, Bandstand, Bandra (West), Mumbai – 400 050, Maharashtra, India
Date of Birth	24.10.1955
Date of Appointment	02.04.2003

Name	Mr. Steve Nowak (Foreign)
Designation	Director
Address	50100, Northridge, Plymoth, Mechigan, USA
Date of Birth	08.01.1961
Date of Appointment	26.05.2003

Name	Mr. Steve Zirkel (Foreign)
Designation	Director
Address	Hanai Building, 3 F, 1-2-9, Shibakoen, Minatoku, Tokyo, Japan 105 0011
Date of Birth	22.09.1962
Date of Appointment	10.06.2004

KEY EXECUTIVES

Name	Mr. Shrikant Mate
Designation	Company Secretary
Address	A/ 8, Ganesh Bhava, Noori Bhava, Noori Baba Road, Thane, Maharashtra, India
Date of Birth	13.06.1962
Date of Appointment	16.12.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares

Ms. Jyothi Sagar		1
Mr. Sajai Singh		1
Mahendra Holding & Finance Limited		28124792
ILFS & Trust Co. Limited		12100202
Archway Investments Limited		12100203
IPMC Inc Delaware (USA)		78487796
Mahindra Holding & Finance Limited & Mr. A. K. Nanda		1
Mahindra Holding & Finance Limited & Mr. R. R. Krishnan		1

Names of Shareholders		Percentage of Holding

Foreign Holding [Foreign Institution(s), Foreign Companie(s), Foreign Financial Insitution(s), Non-Resident Indian(s), or Overseas Corporate Bodies or Others		78.50
Bodies Corporate		21.50
Total		100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Trading of Roofing Products, Commercial Roofing, Insulation Foam, Asphalt, Fibre Glass, Yarn Textile, Rovings and Mats, etc.

Products :	* Mats * Rovings

Exports :
Products :	All Products
Countries :	UAE and Saudi Arabia

Imports :
Products :	Raw Material
Countries :	Germany, Korea and Japan

GENERAL INFORMATION

No. of Employees :

Around 350

Bankers :

* Standard Chartered Grindlays Bank, New Delhi

* Standard Chartered Grindlays Bank, Mumbai

* Centurion Bank of Punjab Limited, Durga Niwas M G Road, Panaji, Goa 403 001, India

* Export Import Bank of India, Centre One Building, 21^st Floor, Wordl Trade Centre Complex, Cuffe Parade, Mumbai 400 005, Maharashtra, India


Banking Relations :	Good

Auditors :
Name :	Price Waterhouse & Company Chartered Accountants
Address :	252, Veer Savarakar Marg, Opp Shivaji Park, Dadar (West), Mumbai 400 028, Maharashtra, India

Holding Company :	* IPM Inc., USA * Owens Corning, Toledo, Ohio 43659

Associates/Subsidiaries :	* Mahindra Holding & Finance Limited * Mahindra & Mahindra Limited * Owens Corning Canada INC * Owens Corning Veil U.K. Limited * Owens Corning Composites SPRL, Belgium * Owens Corning (Sweden) Limited * Owens Corning Espana S.A., Spain * Owens Corning Korea * Owens Corning Fiberglass France S.A. * Owens Corning Fiberglas Norway A/S * Owens Corning (Japan) Limited * Owens Corning (China) Investment Co. Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount

200000000	Equity Shares	Rs. 10/- each	Rs. 2000.000 millions
2500000	Preference Shares	Rs. 100/- each	Rs. 250.000 millions
	Total		Rs. 2250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

130812997	Equity Shares	Rs. 10/- each	Rs. 1308.130 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		01.01.2006 To 31.03.2007	01.01.2005 To 31.12.2005
SHAREHOLDERS FUNDS
1] Share Capital		1308.130	1308.130
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		971.889	951.129
4] (Accumulated Losses)		0.000	0.000
NETWORTH		2280.019	2259.259
LOAN FUNDS
1] Secured Loans		1550.370	1196.079
2] Unsecured Loans		83.982	96.649
TOTAL BORROWING		1634.352	1292.728
DEFERRED TAX LIABILITIES		0.000	0.000

TOTAL		3914.371	3551.987

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		3457.112	2938.633
Capital work-in-progress		236.338	232.979

INVESTMENT		0.005	0.005
DEFERREX TAX ASSETS		0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	328.576	236.302
	Sundry Debtors	448.619	104.742
	Cash & Bank Balances	14.102	426.481
	Other Current Assets	6.461	323.012
	Loans & Advances	294.571	121.130
Total Current Assets		1092.329	1211.667
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	856.962	816.907
	Provisions	14.451	14.390
Total Current Liabilities		871.413	831.297
Net Current Assets		220.916	380.370

MISCELLANEOUS EXPENSES		0.000	0.000

TOTAL		3914.371	3551.987

PROFIT & LOSS ACCOUNT

PARTICULARS		01.01.2006 To 31.03.2007	01.01.2005 To 31.12.2005
Sales Turnover		2482.165	1431.190
Other Income		111.489	90.760
Total Income		2593.654	1521.950

Profit/(Loss) Before Tax		35.253	50.000
Provision for Taxation		0.000	0.000
Profit/(Loss) After Tax		35.253	50.000

Earnings in Foreign Currency :
	Export Earnings	945.834	819.605
Total Earnings		945.834	819.605

Expenditures :
	Raw Material Consumed	483.564	183.890
	Purchases made for re-sale	593.856	82.079
	Consumption of stores and spares parts	128.160	93.615
	Increase/(Decrease) in Finished Goods	(104.099)	40.037
	Salaries, Wages, Bonus, etc.	215.040	172.846
	Managerial Remuneration	11.730	9.887
	Payment to Auditors	2.048	1.023
	Interest	154.883	96.672
	Insurance Expenses	38.234	19.600
	Power & Fuel	442.715	234.931
	Depreciation & Amortization	310.031	237.646
	Other Expenditure	282.239	299.724
Total Expenditure		2558.401	1471.950

KEY RATIOS

PARTICULARS		01.01.2006 To 31.03.2007	01.01.2005 To 31.12.2005
PAT / Total Income	(%)	1.36	3.28

Net Profit Margin (PBT/Sales)	(%)	1.36	3.28

Return on Total Assets (PBT/Total Assets}	(%)	0.73	1.14

Return on Investment (ROI) (PBT/Networth)		0.01	0.02

Debt Equity Ratio (Total Liability/Networth)		2.09	1.94

Current Ratio (Current Asset/Current Liability)		1.25	1.45

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 5^th July, 1995 at New Delhi in India having Company Registration Number 70515.

The company’s Registered Office was shifted from New Delhi to Mumbai with effect from 06.03.2000 and a New Company Registration Number 124707 of Mumbai ROC was obtained.

The company has been promoted by Owens Corning, a company incorporated in the USA and Mahindra & Mahindra Limited, an Indian Company. The company is involved in the manufacturing of glass fiber for use in composites.

FORM 8 :

This form is for	Creation of charge
Corporation identity number (CIN) or foreign company registrations number of the company	U73100MH1995PLC124707
Name of the company	OWENS CORNING (INDIA) LIMITED
Address	Mahindra Towers, Ground Floor, Road No. 13, Worli, Mumbai – 400 018, Maharashtra, India
Type of Charges	Movable property
Whether consortium finance is involved	No
Whether joint charge involved	Yes
Number of charge holder(s)	2
Particular of the charge holder	Centurion Bank of Punjab Limited Durga Niwas M G Road, Panaji, Goa 403 001, India
Nature or description of the instrument creating or modifying the charge	Joint deed of hypothecation of plant and machinery and other movable fixed assets
Date of the instrument creating charge	26.02.2007
Whether charge created or modified outside India	No
Amount Secure by the charge	Rs. 473.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: Centurion Bank of Punjab Limited – Gsec plus 150 basis points Bank Muscat – LIBOR plus 200 basis points Terms of repayment: Centurion Bank of Punjab Limited – May 2009 Bank Muscat – 4 quarterly installments commencing from October, 2009 Extent and operation of the charge: 1/charge to rank on pari passu basis with the lenders., more particularly described in the schedule II attached to the joint deed of hypothecation 2/Security to cover principal together with interest, costs, charges, expenses, etc. Others: security created in respect of the following credit facilities granted by: Centurion Bank of Punjab Limited – Rs. 250.000 millions Bank Muscat (SAOG) – USD 5 Million equiv to – Rs. 223 million (approx.)
Short particulars of the Property charged	All the movable fixed plant and machinery, furniture, fixtures, etc. both present and future (as listed in schedule I attaché to the joint deed of hypothecation), being movable fixed assets, now stored at or being stored or which may hereafter be brought into or stored at or at present installed at Plot No. T-28, in the Taloja Industrial Area, within the village limits of municipal council, Taluka Panvel, District Raigad and also the plant and machinery, which may at any time belong to the company.
Whether any of the property or interest therein under reference is not registered in the name of the company	No

Name of the company	OWENS CORNING (INDIA) LIMITED
Presented By	Mr. Satish Kulkarni, Managing Director
1) Date and description of instrument creating the change	Unattested deed of hypothecation dated 04.04.2005 executed by Owens Corning India Limited (therin and hereafter referred to as “the Borrower” ) in favour of Export Import Bank of indai (Exim Bank) a certified true copy whereof is attached hereto.
2) Amount secured by the charge/amount owing on the securities of charge	Loan of USD 7.000 million (including any coverted Rupee amount(s) consequent upon default, in the case of foreign currency loan) together with interest, compound interest, additional interest by the way of liquidated damages (in case of default), costs, (legal costs on full indemnity basis), charges, expenses, and all other monies payable by the borrower to Exim Bank under the loan agreement dated 04.04.2005 made between the borrower and Exim Bank
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	The whole of the borrower’s movable assets, both present and future briefly described in schedule III to the deed of hypothecation including its movable plant and machinery and current assets both present and future
4) Gist of the terms and conditions and extent and operation of the charge.	The charges created by the aforesaid deed of hypothecation shall operates as a continuing security by way of a pari passu first charge over the borrower movable fixed assets and pari passu first charge over the borrower current assets for the due repayment by the borrower to Exim Bank of the loan of USD 7.000 million (including any converted rupee amount(s) consequent upon default in the case of foreign currency loan) together with payment of interest, compound interest, additional interest, by way of liquidated damages (in case of default), costs, (legal costs on full indemnity basis), charges, expenses, and all other monies payable by the borrower to Exim Bank in terms of the said loan agreement. The said charge shall rank in the order of priority set out in schedule IV to the deed of hypothecation
5) Name and Address and description of the person entitled to the charge.	Export Import Bank of India Centre One Building, 21^st Floor, Wordl Trade Centre Complex, Cuffe Parade, Mumbai 400 005, Maharashtra, India
6) Date and brief description of instrument modifying the charge	NA
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.	NA

The company is in trade terms with :

Ø Mahindra & Mahindra Limited, Mumbai

The company’s fixed assets of important value include leasehold land, building, plant & machinery, computers, office equipments, furniture & fixtures and vehicles.

WEBSITE DETAILS ATTACHED:

Subject is a Joint venture between M/S Owens Corning USA and Mahindra and Mahindra from India. Owens Corning USA is a global leader in Glass Fiber manufacturing and building material providers. The Company started its commercial production in the year 1999. Current manufacturing capacity of this plant is 35,000 tons/year. More than 80% of the product is exported while rest is consumed in domestic market.

Introduction to Owens Corning Composites Systems Business: Owens Corning is dedicated to creating value for customers by delivering cost-effective solutions that replace traditional materials such as wood, steel and aluminum.

Glass fiber composites have become a material of choice for added performance because of their design flexibility, higher strength, lighter weight, corrosion resistance, electrical properties and cost reduction benefits. They are used in more than 40,000 end-use applications. Owens Corning has built a core competency in solving advanced material needs in virtually every major industry. To help create new product concepts, Owens Corning can support customers’ design processes and concept implementation with its System Thinking approach. Starting with an understanding of customer needs, the System Thinking strategy involves new combinations of materials, equipment, processes and services that go beyond today’s common practices Owens Corning has developed a number of new products for composites. These include Advantex glass fiber, a new proprietary glass formulation that will permit global consistency, and AquaBlok™ and Instant Dry™ coating technology for telecommunications cables, which prevents sensitive optical fibers from water damage.

Owens Corning India ranks among the top 20 Net Foreign Exchange earners in India. OCIL has received the Capexil award for countries Top Exporters for three consecutive years from 1999 to 2003. The manufacturing plant of Owens Corning India is located at Taloja, approximately 40 Kilometers outside Mumbai. The plant manufactures state-of-the-art glass fiber reinforcement materials on an international scale. The plant was set up to manufacture Advantex glass, one of Owens Corning’s proprietary glass formulations. This glass is used to manufacture chopped strand mats (CSM), multi-end Roving and Type 30 Roving. The plant was awarded ISO 14001 certification in January 2001. The company latter obtained OHSAS 18001 certification in the year 2001 and ISO 9001:2000 in year 2002. December 2003 all these three systems were integrated into one system i.e. Operation Management System” (OMS) which is certified by LRQA, India.

Owens Corning India Ltd is an ISO certified organization with integrated systems having ISO 14001,ISO 9001:2000 and OHSAS 18001. LRQA is the certification agency for Owens Corning India Ltd. The integrated system is termed as Operation Management system.

Participated in State Level competition “Award for excellence in energy conservation and management for the year 2004” and won FIRST PRIZE FROM MEDA (Maharashtra Energy Development Agency) in its category.

Owens Corning India ranks among the top 20 Net Foreign Exchange earners in India. OCIL has received the Capexil award for country’s Top Exporters for three consecutive years from 1999 to 2003.

The Taloja plant has been rated as the best plant in Owens Corning world for the year 2002, 2003 and was given “Gold” award for these years.

Energy Conservation Achievements:

In year 2004, Owens Corning India has implemented 6 major energy saving projects. Together this has resulted in a saving of Rupees 0.879 million for the year, with a minimal investment of Rs 0.131million.

The details of Energy saving project implemented in 2004 are:

1) Installation of Mechanical seal in the chilled water pumps

Taloja have four chilled water pumps, which had Teflon glands. The gland would leak and there was a loss of chemically treated water. The consumption of chemically treated water was 01 m3/day. We had replaced this gland with mechanical seal, which gives energy savings as well as zero leakage. The energy consumed by mechanical Seal is also less compared to pumps with Gland packing (results indicated saving of 0.7 KW per pump)

Annual Energy savings in KW : 19622.4

Annual savings in Rs : 0.068 million

Chemical savings in Rs : 0.231 million

Water saving in Rs : 0.007 million

Total savings in Rs : Rs 0.306 million

2) Cake Oven Optimization -Temperature optimization

Taloja Plant run different product lines with different curing time and curing temperature in the cake oven. This means each product has to have one specific oven assigned to it. Due to this we were operating all the curing ovens. Trials proved this can be done and one oven can be used for multiple products. Product # 495 which used to run at 275 Degree @13 hrs and product ME 3003 which used to run at 265 degree @ 15 hrs were brought to match the curing time and temp. of other products running at 265 @ 13 hrs. This made all products running at 265 @ 13 hrs.

Propane saving in MT/annum = 5.76

Propane saving in Rs/annum = 0.98 Lakhs

3) CSM equipment stopped during cleaning

When CSM line is put in local mode (during line cleaning), all conveyors, Forming Fans, Emulsion precipitator fans, emulsion pumps, Cutter feed rollers continued to run. The CSM team carried out a study and attempted to stop these equipment when in local mode. When the line is put in local mode Zone 2,3,4 will stop immediately. Zone 1 continues to run. Before starting the Zone 2 & 3 a purge system will work i.e the blowers will first run for a particular time before the ignition can take place. During purge, Zone 1 will stop and belt burner will stop. Once purge is complete only after giving manual start command the burners will start. The safety of the system is ensured by logic change that no burners will start without completions of purge system.

Circulation fans 20KW(running), Precipitator exhaust fan 17kw (running)

Supply pump 2kw (running), Cutter feed roll -4 kw

Total Energy = 20*3+17+2+4 =83kw

Energy saved per day : 83KW (Down time per day for cleaning is 1hour)

Annual energy saving in KW : 30295

Annual energy saving in Rs : 0.97 Lakhs

4) Conservation of Natural resources – Water consumption.

Utility team found a way of reducing the water consumption during the monsoon. During heavy rain fall it was observed that lot of water is going down to the rainwater drain, which was all good water. The water from the roof drain was collected in a vessel after filtration and was diverted to cooling tower for make up. A picture of it is attached. We collected 6052cum of water by using this system.

The cost per cum is Rs 18./-

Energy required for pumping this water = 0.13kw/cum (Here we have saved 0.13Kw/cum x 6052 cum = 665Kw)

Total saving in Rs : 1.19 Lakhs

5) Roving Fan V belt converted to Energy saving flat belt.

Roving Fab, south side fuzz collector fan was operating on a drive and the North side was also operating at a speed higher than required. Both side the speed were reduced by increasing the pulley diameter and also by incorporating Flat Belts (“HABASIT FLAT BELT”).

Power saving = 35.9-29 =6.9KW

Annual Energy saving in Rs : 1.75 Lakh

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.50.52
UK Pound	1	Rs.75.54
Euro	1	Rs.63.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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		72

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

MIRA INFORM REPORT

Unit