MIRA INFORM REPORT

Report Date :

29.08.2011

IDENTIFICATION DETAILS

Name :	TATA CUMMINS LIMITED
Registered Office :	Telco Township Jamshedpur – 831004, Jharkhand
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.10.1993
Com. Reg. No.:	03-005546
Capital Investment / Paid-up Capital :	Rs.1800.000 Millions
CIN No.: [Company Identification No.]	U34101JH1993PLC005546
TAN No.: [Tax Deduction & Collection Account No.]	RCHT00119A
PAN No.: [Permanent Account No.]	AAACT6353L
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Diesel Engines
No. of Employees :	850 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

A (56)

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 15100000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory 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.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Telco Township Jamshedpur, Jharkhand – 831004, Jharkhand
Tel. No.:	91-657-3041200
Fax No.:	91-657-2258555
E-Mail :	Mihir.vaidya@cummins.com Revati.gokhale@cummins.com amit.g.atre@cummins.com
Website :	www.tatacummins.com

DIRECTORS

As On 08.06.2011

Name :	Mr. Anant J. Talaulicar
Designation :	Managing Director
Address :	Flat No.1901, A and B, Sterling Tower, Goregaonkar Road, Mumbai – 400007, Maharashtra
Date of Birth/Age :	11.07.1961
Date of Appointment :	08.04.2004
DIN :	00031051
Name :	Mr. Prakash M. Telang
Designation :	Director
Address :	D211/212, Paradise Towers, Baner, Pune – 411045, Maharashtra, India
Date of Birth/Age :	21.06.1947
Date of Appointment :	01.09.2000
DIN :	00012562
Name :	Mr. Chandrashekaran Ramakrishnan
Designation :	Director
Address :	322, Samudra Mahal, Dr. Annie Besant Road, Worli, Mumbai-400108, Maharashtra, India
Date of Birth/Age :	27.06.1955
Date of Appointment :	15.06.2006
DIN :	00020076
Name :	Mr. Rajiv Batra
Designation :	Director
Address :	Floor No. 5 and 6, The Iris Sangamwadi Northmain Road, Koregaon Park, Pune - 400001, Maharashtra
Date of Birth/Age :	30.09.1955
Date of Appointment :	19.08.2004
DIN :	00082866
Name :	Mr. Rajendra Petkar
Designation :	Director
Address :	D4, Keyoor HSG Soc., Lane II, Krishna Colony, Opposite Vanaz Paud Road, Pune-411038, Maharashtra, India
Date of Birth/Age :	03.10.1966
Date of Appointment :	23.07.2007
DIN :	01693629
Name :	Mr. Satish Balkrishna Borwankar
Designation :	Director
Address :	G1, Golmuri Road, Nildil PO Glomuri, Jamshedpur – 831003, Jharkhand, India
Date of Birth/Age :	15.07.1952
Date of Appointment :	30.07.2010
DIN :	01793948
Name :	Mr. David J Crompton
Designation :	Director
Address :	6006, Leatherback CT, Columbus-47201, Indiana USA
Date of Birth/Age :	21.12.1965
Date of Appointment :	23.07.2007
DIN :	01680481
Name :	Mr. Ravindra N Pisharody
Designation :	Director
Address :	B215, Samudra Mahal, 15^th Floor, Dr Annie Besant Road, Mumbai-400108, Maharashtra, India
Date of Birth/Age :	24.11.1955
Date of Appointment :	26.10.2007
DIN :	01875848
Name :	Mr. Jeffrey M. Weikert
Designation :	Director
Address :	3347, Nugent Blvd, Columbus-47203, Indiana USA
Date of Birth/Age :	22.07.1953
Date of Appointment :	21.01.2008
DIN :	02057560
Name :	Mr. David Selheim
Designation :	Alternate Director
Address :	915, Westlale Hills Dr, Columbus-47201, Indiana USA
Date of Birth/Age :	03.06.1955
Date of Appointment :	23.07.2007
DIN :	01680502
Name :	Rajasekhar C Menon
Designation :	Director [Appointed in casual vacancy]
Address :	4878, Benthaven Drive (E), Bargersvile, Columbis – 46106, Indiana
Date of Birth/Age :	15.05.1965
Date of Appointment :	24.06.2010
DIN :	03074942

KEY EXECUTIVES

Name :	Mr. Subhashree Damle
Designation :	Secretary
Address :	A101, Vanaraji Apts, Mit College Road, Rambaugh Colony, Kothrud Paud Road, Kothrud, Pune-411029, Maharashtra, India
Date of Birth/Age :	20.08.1967
Date of Appointment :	27.04.2007
Name :	Ms. Revati Amey Gokhale
Designation :	Secretary
Address :	Flat NO.7, Shripad Apts., Bhusari Colony, Pune – 411038, Maharashtra, India
Date of Birth/Age :	23.01.1980
Date of Appointment :	21.01.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 08.06.2011

Names of Shareholders	No. of Shares
Tata Motors Limited, Jamshedpur , India	89999995
Cummins INC, Columbus	90000000
Tata Motors Limited and Mr. Satish Borwankar	1
Tata Motors Limited and Mr. R.T. Singh	1
Tata Motors Limited and Mr. Uttam Biswas	1
Tata Motors Limited and Mr. Ravindra Pisharody	1
Tata Motors Limited and Mr. Chobe P.	1
Total	180000000

As On 08.06.2011

Category	Percentage of Holding
Foreign holdings (Foreign institutional investor(s), Foreign companies(s) Foreign financial institution(s), Non-resident Indian(s) or overseas corporate bodies or Other	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Diesel Engines
Products :	Item Code : 8408.00 Product Description : Compression ignition internal combuston Piston Engine.

GENERAL INFORMATION

No. of Employees :

850 [Approximately]

Bankers :

• Axis Bank Limited, Sai Capital Building, 2nd Floor, Opp International, Convention Centre, Senapati Bapat Marg, Pune - 411016, Maharashtra, India
• HDFC Bank Limited, Central Plaza Branch, 2/6, Sarat Bose Road, Kolkata – 700020, West Bengal, India

Facilities :

Secured Loan [Rs. in million]	31.03.2010	31.03.2009
Cash Credit and Demand Loans from Banks	0.000	668.141
Cash Credit and Demand Loans from Banks are secured by hypothecation of raw material, stock in process, finished goods, stores and spares, book debts and other liquid assets of the company by way of first charge.
Total	0.000	668.141
Unsecured Loan [Rs. in million]	31.03.2010	31.03.2009
Short term loan from banks	0.000	808.006
Total	0.000	808.006

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Bengal Intelligent Park, Bldg Alpha Plot A2, M2 and N2, Block EP and GP, Sector V, Salt Lake Electro, Kolkata – 700091, West Bengal, India
Tel. No.:	91-33-65121000
Fax No.:	91-33-65121001
PAN :	AAAFD5357J

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
180,000,000	Equity Shares	Rs.10/- each	Rs.1800.000 millions
70,000,000	Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 700.000 millions
			Rs.2500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
180,000,000	Equity Shares	Rs.10/- each	Rs.1800.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		1800.000	1800.000	1800.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1975.982	1451.892	1399.057
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3775.982	3251.892	3199.057
LOAN FUNDS
1] Secured Loans		0.000	668.141	186.019
2] Unsecured Loans		0.000	808.006	114.386
TOTAL BORROWING		0.000	1476.147	300.405
DEFERRED TAX LIABILITIES		283.368	299.571	330.419
TOTAL		4059.350	5027.610	3829.881
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2944.634	3152.533	3034.030
Capital work-in-progress		1102.362	931.127	634.562
INVESTMENT		250.462	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1329.969	1346.393	1203.073
	Sundry Debtors	588.325	548.083	841.966
	Cash & Bank Balances	27.040	51.333	18.651
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	799.811	742.354	815.680
Total Current Assets		2745.145	2688.163	2879.370
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1984.346	1343.261	1899.024
	Other Current Liabilities	116.656	71.967	144.684
	Provisions	882.251	328.985	674.373
Total Current Liabilities		2983.253	1744.213	2718.081
Net Current Assets		(238.108)	943.950	161.289
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4059.350	5027.610	3829.881

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	17832.638	11535.805	15067.912
		Other Income	150.799	134.196	215.952
		TOTAL (A)	17983.437	11670.001	15283.864
Less	EXPENSES
		Manufacturing and Other Expenses	15916.996	10777.095	13177.658
		TOTAL (B)	15916.996	10777.095	13177.658
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2066.441	892.906	2106.206
Less	FINANCIAL EXPENSES (D)		42.279	71.664	4.556
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2024.162	821.242	2101.650
Less/ Add	DEPRECIATION/ AMORTISATION (F)		418.937	484.274	336.854
	PROFIT BEFORE TAX (E-F) (G)		1605.225	336.968	1764.796
Less	TAX (I)		556.396	126.190	579.126
	PROFIT AFTER TAX (G-I) (J)		1048.829	210.778	1185.670
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1116.141	1063.306	628.009
Less	APPROPRIATIONS
		Transfer to General Reserve	105.000	0.000	118.600
		Dividend	450.000	135.000	540.000
		Tax on Dividend	74.739	22.943	91.773
	BALANCE CARRIED TO THE B/S		1535.231	1116.141	1063.306
	Earnings Per Share (Rs.)		5.83	1.17	6.59

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.83	21.81	7.75
Net Profit Margin (PBT/Sales)	(%)	9.00	2.91	11.71
Return on Total Assets (PBT/Total Assets}	(%)	28.21	5.75	29.84
Return on Investment (ROI) (PBT/Networth)		0.42	0.10	0.55
Debt Equity Ratio (Total Liability/Networth)		0.79	0.99	0.94
Current Ratio (Current Asset/Current Liability)		0.92	1.54	1.05

LOCAL AGENCY FURTHER INFORMATION

Company details:

Subject is a 50:50 Joint Venture between Tata Motors Limited, India's largest Automobile manufacturer and Cummins Engine Company Inc. of USA, world leaders in design and manufacture of diesel engines. The Rs 300 Crore project with an authorized share capital of Rs 250 Crore has been set up at Jamshedpur for the manufacture of Diesel engines to power Tata Motors Limited's commercial vehicles. The decision to locate at Jamshedpur was based on the desire to be near the customer.Commercial production of engines from kits commenced in January 1996 and the machining lines for in-house manufacture of components started in March 1997.

Tata Cummins currently employs about 850 people and has a capacity of 72,000 engines per annum & has plans to increase its capacity up to 1,20,000 in recent period.

Business Environment

Industry:

While the economies across the globe worked their way out of the economic crisis, the boost given to the Indian Economy in the form of stimulus package, cut in key policy rates and enhanced infrastructure spending worked positively for the Indian Automotive Industry. The financial year 2009-10 was more of a recovery year with the industry registering a positive growth, though on a lower base of FY 2008-09. Overall Commercial Vehicle (CV) Segment saw a growth of about 38% during April-March 2010 over the same period in the previous year. The Medium and Heavy Commercial Vehicle (M and HCV) segment, in which the Company operates, registered a 34% growth.

Due to the strong association of the Commercial Vehicle Segment to the growth of economy it is expected that this segment would continue to grow between 10 to 15% in the, 2010- 1 fiscal. However, the hike in excise duties, the rising commodity prices and the new emission norms may subdue growth to a certain extent.

Company:

Overview for the year:

As the economic scenario improved in the last quarter of the previous fiscal, a positive change in the production numbers was seen. With an increase of 53%. The production to]- the current financial year stood at 117,572 engines as compared to the previous year of 77,350 engines. Profit before Interest and Tax (PBIT) stood at Rs.1648.000 millions against Rs.409.000 millions in the previous financial year. the surge in demand began around Q2 of the financial year and continued through the rest of the year. After the slowdown, the supply chain was not ready for this level of reversal and it came under tremendous pressure leading to loss on encashment of available demand in the market. Given the context of such a market situation, in the Company's partner and customer, Tata Motors Limited (TML) was still able to increase its market share enabling us to grow The company’s market share, in turn.

The readiness for the new emission norms continued to be a key focus area for the Organization. While production lines sweated out to prove capacity, building capability and sustainability through manufacturing and operational excellence continued to be strengthened. ACE I1 worked its way to implement reduction idea$ to built1 cost competitiveness Energy conservation helped the Company to focus on its Green initiatives.

With the positive change in the economic scenario and market opening up, the company’s green field project at Phaltan which was on 'Pause' since Dec-2008 restarted this financial year. They expect the machining line to be up by Q4 2010 and assembly by Q12011.

The next financial year has also begun on a positive note and the growth is expected to continue as the Automotive Market remains buoyant.

Form 8:

Corporate identity number of the company	U34101JH1993PLC005546
Name of the company	TATA CUMMINS LIMITED
Address of the registered office or of the principal place of business in India of the company	Telco Township, Jamshedpur, Jharkhand – 831004, India
This form is for	Creation of charge
Type of charge	Movable Property
Particular of charge holder	AXIS BANK LIMITED
Nature of instrument creating charge	Deed of Hypothecation of Machinery and Other Movable Fixed Assets
Date of instrument Creating the charge	19/08/2010
Amount secured by the charge	Rs.2000.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 8.5% Payable Monthly Terms of Repayment To Be Repaid In Eight Equal Quaterly Instalments Commencing One Year From The Date First Disbursement Extent and Operation of the charge 1) Pari passu first charge along with Development Bank of Singapore. 2) Payable by the borrower on demand with prior intimation. 3) penal interest at the rate of 2%per annum from the date of default to the date of actual payment. 4)money will be utilised solely for the purpose of borrowers business. 5)borrower shall furnish to the bank full and correct statement of all movable assets. Others ''The Company, by virtue of the Board Resolution passed on 21.01.2008 and 24.06.2010,has accpeted all the Terms and Conditions, Covenants, as provided in the Bank's Sanction Letter AXISB/CO/LC/PM/2010-11/04,Dated 07.04.2010,have executed the related loan document(s)/ Agreement(s) through the CFO and Director, who have received and signed the documents in physical form and who have been authorized to file eform-8 for modifications in the existing limits and in nature of the charge on agreed terms''
Short particulars of the property charged	all movable fixed assets i.e. movable machinery, plant machinery, fixtures, fittings, under installation, cranes, furniture, computers, and other accessories vehicles together with spares tools and accessories and all other articles pertaining to manufacturing facility to be set up at Phaltan lying on the premises or in the godowns of the borrower or in the custody of any person who are mercantile agents of the borrower or in the course of transit which may herein after be brought stored or be lying or upon the said premises of borrower.

Fixed Assets :

v Buildings

v Plant and Machinery

v Furniture and fixtures

v Vehicles

v Computer Software

AS PER WEBSITE

Company Profile

Tata Cummins Limited (TCL) is a 50:50 Joint Venture between Tata Motors Limited, India's largest Automobile manufacturer and Cummins Engine Company Inc. of USA, world leaders in design and manufacture of diesel engines. The Rs.3000.000 millions project with an authorized share capital of Rs.2500.000 millions has been set up at Jamshedpur for the manufacture of Diesel engines to power Tata Motors Limited's commercial vehicles. The decision to locate at Jamshedpur was based on the desire to be near the customer.Commercial production of engines from kits commenced in January 1996 and the machining lines for in-house manufacture of components started in March 1997.

Tata Cummins currently employs about 850 people and has a capacity of 72,000 engines per annum and has plans to increase its capacity up to 1,20,000 in recent period.

Their Product

The low emission Diesel Engines manufactured by Tata Cummins are for use in a new generation of Tata Motors Ltd's Medium and Heavy Commercial Vehicles. The engines conform to EURO - I , EURO - II and EURO - III standards for emissions. The 78 to 235 Horsepower engines have a high power to weight ratio and will enable Tata Motors Ltd. access new markets worldwide with its advantage of emissions, power, oil consumption and durability.

Their Plant

Tata Cummins has a modern manufacturing facility located adjacent to Tata Motors Ltd., designed by Kevin Roche, John Dinkeloo Associates of USA and C P Kukreja Associates of Delhi. The unique plant comprises a fully air-conditioned 182 x 186 m building with pre-cast concrete coffer roofing and 15 x 15 m bays. The North and South walls are of glazed curtain glass. Features such as a PLC controlled Fire Detection/Suppression System, Skylights and Building Management System ensure high levels of Safety and Energy efficiency.

Manufacturing System

The world class manufacturing systems of Tata Cummins are benchmarked against the best internationally and comprise facilities for machining 5 major engine components, and facilities for Assembly, Test and Paint of engines.

Assembly of engines is performed on a state-of-the-art Automated Electrified Monorail System, which is roof, mounted for clean floor assembly. The system is fully PLC controlled and linked to a computerized Assembly Management System. It incorporates Failsafing at each station and In-Process-Verification Systems at critical points for defect free assembly. Laser Pulse Tools, Pneumatic Manipulators and Ergonomically designed workstations and facilities are provided to reduce operator fatigue.

Dedicated Machining lines are commissioned for each of the 5 components which are manufactured in-house viz. cylinder block, cylinder head, crankshaft, camshaft and connecting rods. Equipment has been sourced from leading suppliers in India and overseas to ensure very high levels of capability and reliability. This includes latest gauges, three Coordinate Measuring Machines and sophisticated equipments such as Topometer, Incometer for cylinder bore measurement.

Management System

The company's efforts in achieving manufacturing excellence are guided by the principles and practices of the Cummins Operating System (COS), and the Customer Led Quality objectives. The Company has a flat organization structure. The level of first line Supervisors has been eliminated with the operatives (known as Associates) being organized in Teams. The formally structured Team Based Work System constitutes an integral part of the COS and is a key initiative to involve / empower shop level employees to work towards continuous improvement and customer delight. Total Quality systems or TQS has been adopted from the early stages in the company, in line with Cummins Quality Systems. The latest communications and computing systems have been installed for connectivity internally and with Cummins systems in USA to provide real-time on-line information integrating the manufacturing and management information / control systems.

MILESTONES :

YEAR	CHRONOLOGY OF EVENTS
9th July 1993	Foundation stone laid
27th April 1994	Construction started
31st March 1995	First Engine Built
4th July 1995	Inauguration Of the plant
12th September 1995	Dispatch of first engine
1st January 1996	Commercial Production started
21st December 1996	Inauguration of Machining area
28th January 1997	5,000th Engine Built
29th November 1997	10,000 th engine built
17th February 1998	ISO-9002 certification
22nd September 1998	First Wage Settlement signed
19th January 1999	Inauguration of TCL spares parts warehouse
21st January 1999	Launch of new range of TATA vehicles with TCL engines
14th May 1999	QS-9000 certification
27th May 2000	50,000th engine built
30th June 2000	Launch of B-to B applications for Supply Chain Management
18th July 2000	TPM Kick Off
10th April 2001	Certificate of Appreciation from CII for HR & Quality for 2000-2001
25th May 2001	Export of first consignment of 792 blocks to Cummins, China
23rd August 2001	100,000th Engine built
12th November 2001	Rajiv Gandhi Quality Award for 1999-2000
13th January 2003	Launch of 4B engine & Cummins Road Inauguration
15th July 2003	ISO 14001(EMS) Certification
16th October 2003	First Bonus Agreement
27th November 2003	200,000th Engine built
15th April 2005	300,000th Engine Built
24th April 2005	Cummins EBU Environmental Award
16th Sep 2005	Up gradation to ISO 14001-2004 version
7th Oct 2005	Awarded " TPM Excellence Award-First category " by JIPM, Japan
2nd Dec 2005	TS 16949 certification
9th Dec 2005	IMEA:2005-Won Silver Award in Automotive category

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.45.87
UK Pound	1	Rs.75.14
Euro	1	Rs.66.67

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	9
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		56

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.