MIRA INFORM REPORT

Report Date :

06.12.2011

IDENTIFICATION DETAILS

Name :	TRANSYSTEM LOGISTICS INTERNATIONAL PRIVATE LIMITED
Registered Office :	Transport House, 57/58, 2^nd Cross, 2^nd Floor, Kalasi-Palyam New Extension, Bangalore-560002, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	15.02.1999
Com. Reg. No.:	08-024769
Capital Investment / Paid-up Capital :	Rs.80.002 Millions
CIN No.: [Company Identification No.]	U63023KA1999PTC024769
TAN No.: [Tax Deduction & Collection Account No.]	BLRT01307F
PAN No.: [Permanent Account No.]	AABCT1806F
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in Providing Logistics Solution including Planning Transportation, Cross Docking, Distribution and Other Related Services.
No. of Employees :	50 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a joint venture between Mitsui and Company Limited, Japan and Transport Corporation of India Limited. It is a well established company having fine track records. The company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION PARTED BY [GENERAL DETAILS]

Name :	Mr. Manish
Designation :	Manager
Contact No.:	91-9945923617
Date :	05.12.2011

LOCATIONS

Registered Office :	Transport House, 57/58, 2^nd Cross, 2^nd Floor, Kalasi-Palyam New Extension, Bangalore-560002, Karnataka, India
Tel. No.:	91-80-27287164/22227851/852
Mobile No.:	91-9945923617 [Mr. Manish]
Fax No.:	91-80-27287166
E-Mail :	sagar@tli.ttp.co.in hrd.bng@transystem.co.in
Website:	http://www.transystem.co.in
Location :	Owned
Head Office:	Toyota Techno Park, 20 Bidadi Industrial Area, Bangalore-562109, Karnataka, India
Tel No.:	91-80-27287164/66
Fax No.:	91-80-27287173
Email:	hrd.bng@transystem.co.in transystem@ili.ttp.co.in
Cross Dock Office:	Located At: · Rewari · Pune · Chennai · Noida

DIRECTORS

As on 24.05.2011

Name :

Mr. Vineet Agarwal

Designation :

Director

Address :

19, Olof Palme Marg, Vasant Vihar, New Delhi-110057, India

Date of Birth/Age :

16.09.1973

Date of Appointment :

15.02.1999

Din No.:

00380300

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L70109AP1995PLC019116	TRANSPORT CORPORATION OF INDIA LIMITED	Whole-time director	01-07-08	18-06-98	-	Active	NO
2	L51909AP1994PLC028397	TRANSCORP INTERNATIONAL LIMITED	Director	10-09-01	10-09-01	-	Active	NO
3	U51909DL2005PLC138787	TCI DISTRIBUTION CENTERS LIMITED	Director	18-07-05	18-07-05	20-08-07	Active	NO
4	U63023KA1999PTC024769	TRANSYSTEM LOGISTICS INTERNATIONAL PRIVATE LIMITED	Director	01-04-06	01-04-06	-	Active	NO
5	U74899DL1997PLC086432	NEEL METAL PRODUCTS LIMITED	Director	24-07-07	05-02-07	01-09-08	Active	NO
6	U45203DL2007FTC161784	TCI INFRA DEVELOPERS PRIVATE LIMITED	Director	09-04-07	09-04-07	-	Active	NO
7	U70102AP2008PLC059173	TCI DEVELOPERS LIMITED	Director	14-05-08	14-05-08	-	Active	NO
8	U45400AP2008PLC059182	TCI INFRASTRUCTURE LIMITED	Director	15-05-08	15-05-08	-	Active	NO
9	U27203WB1989PTC046081	ALFA ALUMINIUM PRIVATE LIMITED	Director	18-06-08	18-06-08	12-04-11	Active	NO
10	U93090DL1998NPL097629	YPO (DELHI CHAPTER) U/S25	Director	09-12-08	04-07-08	-	Active	NO
11	U60231DL2007PTC216625	INFINITE LOGISTICS SOLUTIONS PRIVATE LIMITED	Director	13-05-10	02-03-10	-	Active	NO

Name :

Mr. Jasjit Singh Sethi

Designation :

Director

Address :

10, Ground Floor, D1 Block, South City 2, Gurgaon-122001, Haryana, India

Date of Birth/Age :

20.08.1967

Date of Appointment :

11.05.2010

Din No.:

01554675

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51909DL2005PLC138787	TCI DISTRIBUTION CENTERS LIMITED	Director	18-07-05	18-07-05	Active	NO
2	U45400AP2008PLC059182	TCI INFRASTRUCTURE LIMITED	Director	25-05-10	02-09-09	Active	NO
3	U60231DL2007PTC216625	INFINITE LOGISTICS SOLUTIONS PRIVATE LIMITED	Director	13-05-10	02-03-10	Active	NO
4	U63023KA1999PTC024769	TRANSYSTEM LOGISTICS INTERNATIONAL PRIVATE LIMITED	Nominee director	11-05-10	11-05-10	Active	NO

Name :

Nobuyuki Sugiyama

Designation :

Director

Address :

Mihara, 3-16-1-1506, Asaka Shi-3510025, Japan

Date of Birth/Age :

24.06.1956

Date of Appointment :

20.08.2010

Din No.:

02464560

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U34101DL2006FTC148633	BHUPENDRA AUTOTECH INDUSTRIES PRIVATE LIMITED	Director	09-07-09	11-12-08	16-04-10	Active	NO
2	U29268DL2007FTC160696	OKUMA INDIA PRIVATE LIMITED	Director	17-07-09	29-12-08	08-10-10	Active	NO
3	U34200DL2007PTC169496	INDIA YAMAHA MOTOR PRIVATE LIMITED	Director	24-02-09	24-02-09	25-02-11	Active	NO
4	U45203DL2007FTC161784	TCI INFRA DEVELOPERS PRIVATE LIMITED	Director	24-09-09	04-03-09	25-01-11	Active	NO
5	U63023KA1999PTC024769	TRANSYSTEM LOGISTICS INTERNATIONAL PRIVATE LIMITED	Nominee director	24-05-11	20-08-10	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sagar Mal Agarwal
Designation :	Secretary
Address :	A-405, Wilson Manor Apartments, Wilson Garden, 13^th Cross, Bangalore-560027, Karnataka, India
Date of Birth/Age :	22.07.1961
Date of Appointment :	02.08.1999

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.05.2011

Names of Shareholders	No. of Shares
Vineet Agarwal	100
Mitsui and Company Limited, Japan	4080100
Transport Corporation of India Limited, India	3920000
Total	8000200

As on 24.05.2011

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]	51.00
Bodies corporate	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in Providing Logistics Solution including Planning Transportation, Cross Docking, Distribution and Other Related Services.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

50 [Approximately]

Bankers :

HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
From Banks [Repayable within one year Rs.16.751 Millions, previous year Rs.7.434 Millions]	87.839	8.758
From Others [Repayable within one year Rs.14.943 Millions, previous year Rs.16.533 Millions] [Secured loans are secured against hypothecation of motor trucks and trailers purchased there against.]	14.943	31.476
Total	102.782	40.234

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore-560025, Karnataka, India
Tel. No.:	91-80-66276000
Fax No.:	91-80-66276011
Pan No.:	AACFD3771D
Holding Company:	Mitsui and Company Limited, Japan [51% Share holding]
Joint Venture Partner:	Transport Corporation of India Limited [49% Shareholding]
Associates/Subsidiaries:	· Mitsui and Company India Private Limited · TCI India Limited · XPS Cargo Services Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8000200	Equity Shares	Rs.10/- each	Rs.80.002 Millions

Note: Of the above 4080100 shares are held by Mitsui and Company Limited, Japan, the holding company.

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		80.002	80.002	80.002
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		334.414	260.520	225.293
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		414.416	340.522	305.295
LOAN FUNDS
1] Secured Loans		102.782	40.234	66.353
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		102.782	40.234	66.353
DEFERRED TAX LIABILITIES		8.361	9.587	11.992
TOTAL		525.559	390.343	383.642
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		165.692	140.334	118.991
Capital work-in-progress		8.797	0.064	46.793
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	93.927	100.559	110.344
	Cash & Bank Balances	269.944	194.825	176.613
	Other Current Assets	74.156	3.595	3.038
	Loans & Advances	19.864	7.455	4.571
Total Current Assets		457.891	306.434	294.566
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	87.811	47.860	68.595
	Other Current Liabilities	8.594	3.356	1.499
	Provisions	10.416	5.273	9.795
Total Current Liabilities		106.821	56.489	79.889
Net Current Assets		351.070	249.945	214.677
MISCELLANEOUS EXPENSES		0.000	0.000	3.181
TOTAL		525.559	390.343	383.642

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1249.000	935.800	1000.190
		Other Income	26.210	21.090	17.290
		TOTAL (A)	1275.210	956.890	1017.480
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1090.690	832.390	849.650
		Advertising Expenses
		TOTAL (B)	1090.690	832.390	849.650
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		184.520	124.500	167.830
Less	FINANCIAL EXPENSES (D)		4.030	4.930	4.240
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		180.490	119.570	163.590
Less/ Add	DEPRECIATION/ AMORTISATION (F)		53.420	54.980	42.800
	PROFIT BEFORE TAX (E-F) (G)		127.070	64.590	120.790
Less	TAX (H)		43.850	24.680	42.040
	PROFIT AFTER TAX (G-H) (I)		83.220	39.910	78.750
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		260.520	225.290	155.900
Less	APPROPRIATIONS
		Dividend	8.000	4.000	8.000
		Tax on Dividend	1.330	0.680	1.360
	BALANCE CARRIED TO THE B/S		334.410	260.520	225.290
	Earnings Per Share (Rs.)		10.40	4.99	9.85

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.53	4.17	7.74
Net Profit Margin (PBT/Sales)	(%)	10.17	6.90	12.07
Return on Total Assets (PBT/Total Assets}	(%)	20.37	14.45	29.20
Return on Investment (ROI) (PBT/Networth)		0.31	0.19	0.40
Debt Equity Ratio (Total Liability/Networth)		0.50	0.28	0.47
Current Ratio (Current Asset/Current Liability)		4.29	5.42	3.69

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	No
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	No
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

BACKGROUND:

Subject is incorporated as a private limited company under the provision of Company’s Act 1956. The company a joint venture between Mitsui and Company Limited, Japan (MITSUI) (51% of stake) and Transport Corporation of India Limited (TCI) (49% stage). The company is engaged in providing logistics solution including planning transportation, cross docking, distribution and other related services.

PERFORMANCE:

During the year, performance of the company has been very encouraging. Revenue has increased by 33.50% and increase in earnings before interest, depreciation and tax is 48% compared to previous year. Profit before tax is up by 97% and its percentage on total revenue has increased from 6.75% to 9.97% compared to previous year.

This has impact of increase in Toyota Kirloskar Motor (TKM) CBU production by 38% and dispatch by 32% compared to previous year in view of quick recovery of auto sales in India and competent pricing of freight.

Current year’s profit includes an amount of Rs.8.040 Millions from sale of old commercial vehicles compared to Rs.6.740 Millions in the previous year.

FINANCE:

During the year, The Company has invested an amount of Rs.83.540 Millions in new commercial vehicles with borrowed fund and has re-paid Rs.25.920 Millions towards old term loans. It did not avail any loan for its working capital requirement and has utilized its cash reserve for this purpose.

Interest earned by the Company during the year by employing its cash reserves in short/long term bank deposits after utilization for working capital is Rs.15.960 Millions compared to Rs.14.380 Millions in the previous year.

Company has not accepted any fixed deposits and, as such, no amount of principal or interest was outstanding as of the balance sheet date.

OPERATIONAL DEVELOPMENTS:

During the year, The Company has been successful in handling inbound and outbound logistics requirement of TKM. In respect of damage free and on time delivery they have been able to maintain the desired performance level of TKM.

Company has entered into direct transportation contract with Honda Siel Cars India Limited, Noida in July, 2009 and has earned revenue of Rs.19.81 Millions by transporting 1,497 CBUs during this period.

Company has re-approached Renault Nissan for transportation of its CBUs from its upcoming plant in Chennai and expects favorable response in the current fiscal year.

OUTLOOK:

Legal Compliance, Safety and Training are always a priority to the Company to continuously improve its quality of service to its Customers.

However, during the financial year, though overall accidents numbers have come down by 33% compared to previous year despite increase in volume but there were five fatal accidents which had a big negative impact on Company's image. The Company is making all efforts to restrengthen is safety activity to eliminate major and fatal accidents in its operation.

The Company has renewed its agreement with Cholamandalam MS Risk Services Limited, Chennai for safety training and accident control.

The current fiscal year is very important for Company to develop and prepare itself more particularly in competent Human Resources front to serve TKM satisfactorily for its upcoming new Car Plant in December, 2010.

During the year Karnataka Udyog Mitra has approved Company's project for new Truck Yard vide its letter dated 29th August,2009 and has allotted 30 Acres of Land in Bidadi Industrial Area, 2nd Phase, 2nd Sector, Bangalore. Company is taking necessary steps to acquire the Land once the Industrial Area is developed by KIADB and will construct new Truck Yard to cater effectively TKM's new car project.

INFORMATION TECHNOLOGY:

During the year, The Company continues to improve its IT system and has strengthened it GPS and vehicle tracking by gradually replacing old GPS with new one having additional improved features. Truck locations are getting auto updated in the TKM Web-Track system designed to check status of CBUs by its dealers. The Company will continue to put more focus on IT supported operation control than manual.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U63023KA1999PTC024769
Name of the company	TRANSYSTEM LOGISTICS INTERNATIONAL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Transport House, 57/58, 2^nd Cross, 2^nd Floor, Kalasi-Palyam New Extension, Bangalore-560002, Karnataka, India
Type of charge	Movable Property (not being pledge)
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India
Email	ranjith.fernando@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Agreement Loan and Guarantee. Contracts No:3378469/76/368/373/376/381/383/387/390/393/ 397/403/408/411/412/422/430/435/444/447/ 450/456/458/462/3379645/3380811 = [Rs.0.252 Million + (Rs.0.317 Million X3Conts)=Rs.0.953 Million +(Rs.0.466 Million X2Conts)= Rs.0.932 Million + Rs.0.868 Million +(Rs.1.076 Millions X6Conts)=Rs.6.459 Millions + Rs.1.076 Million +(Rs.1.124 Millions X2Conts)=Rs.2.248 Millions + Rs.1.159 Millions X3Conts =Rs.3.478 Millions + Rs.1.588 Millions X4Conts=Rs.6.353 Millions + Rs.1.643 Millions X3Conts=Rs.4.929 Millions]=Rs.27.554 Millions.
Date of instrument Creating the charge	30.06.2011
Amount secured by the charge	Rs.27.554 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest @ 10.85% p.a. Terms of Repayment The Loan is repayable in 58 EMIs of Rs.0.425 Million [(Rs.0.005 Million +Rs.0.007 Million X3Conts)=Rs.0.021 Million + (Rs.0.010 Million X2Conts)=Rs.0.20 Million +Rs.0.019 Million + Rs.0.023 Million + Rs.0.023 Million X6Conts=Rs.0.143 Million + (Rs.0.025 Million X2Conts)=Rs.0.050 Million +(Rs.0.025 Million X3Conts)=Rs.0.077 Million +(Rs.0.035 Million X4Conts)=Rs.0.141 Million + (Rs.0.036 Million X3 Conts)=Rs.0.109 Million]Starting from 20th July, 2011 ending to 20th April, 2016. Margin As may stipulated by bank from time to time Extent and Operation of the charge The Company hypothecates to and charges in favour of the Bank by way of first and exclusive charge of the Vehicle/ equipment described in Item No. 15 as security for the repayment/payment by the company of the loan granted or to be granted to the company by the Bank together with all fees, interest, costs and expenses incurred/to be incurred by the Bank and all other monies payable or to become payable by the company to the Bank. Others The Bank shall be absolutely entitled and have full power and authority to sell, assign or transfer in any manner, in whole or in part, and in such manner and on such terms as the Bank may decide, including reserving a right to the Bank to retain its power to proceed against the company on behalf of the purchaser, assignee or transferee, any or all outstanding dues of the company, to any third party of the Bank's choice without reference to or without written intimation to the company
Short particulars of the property charged	Hypothecation of 13 Nos. of Vehicle Namely: 1 No. of EICHER 10.95 WITH BODY,5 No. of EICHER 20.16 WITH BODY,4 NO. OF TATA 3518 with body,3 no. of al with body(year of manufacture - 2011)

FIXED ASSETS:

· Leasehold Buildings

· Motor Trucks and Trailers

· Plant and Machinery

· Motor Cars and Scooters

· Computers

· Furniture and Fittings

· Office Equipments

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] 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.51.39
UK Pound	1	Rs.80.20
Euro	1	Rs.68.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.