MIRA INFORM REPORT

Report Date :

12.12.2011

IDENTIFICATION DETAILS

Name :	MAHINDRA GUJARAT TRACTOR LIMITED

Formerly Known As :	GUJARAT TRACTOR CORPORATION LIMITED

Registered Office :	Vishwamitri Near Railway Overbridge, Vadodara - 390 011, Gujarat

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	31.03.1978

Com. Reg. No.:	04-3127

Capital Investment / Paid-up Capital :	Rs.203.020 millions

CIN No.: [Company Identification No.]	U34100GJ1978PLC003127

TAN No.: [Tax Deduction & Collection Account No.]	BRDM01211A

PAN No.: [Permanent Account No.]	AABCG1042L

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Tractors.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING

STATUS

PROPOSED CREDIT LINE

26-40

Capability to overcome financial difficulties seems comparatively below average.

Small

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company and a part of Mahindra and Mahindra Group. Financial position of the company is moderate. There appears huge accumulated losses. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In view of strong promoters, the company can be considered for normal 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

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

LOCATIONS

Registered Office :	Vishwamitri Near Railway Overbridge, Vadodara - 390 011, Gujarat, India
Tel. No.:	91-265-2311617 / 2339547
Fax No.:	91-265-2338156
E-Mail :	mgti_mm@satyam.net.in mgtl@mahindragujarat.com marketing@mahindragujarat.com iyer.sangameshwar@mahindra.com r.vijay@mahindra.com panaraashok@mahindragujarat.com
Website :	www.mahindragujarat.com

Branch Office :	Located at · Tamilnadu · Karnataka · Madhya Pradesh · Bhiar – Jharkhand · Gujarat · Chhattisgarh · West Bengal · Haryana · Andhra Pradesh · Orissa

DIRECTORS

As on 06.09.2011

Name :	Mr. Pradipkumar Chunilal Vaidya
Designation :	Director
Address :	B-304, Vijay Park, Mathuradas Extension, Kandivali (West), Mumbai – 400 067, Maharashtra, India
Date of Birth/Age :	10.09.1953
Qualification :	B.Com, CA
Date of Appointment :	22.04.2010
DIN No. :	03027006

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	U34100GJ1978PLC003127	Mahindra Gujarat Tractor Limited	Nominee director	30-08-10	22-04-10	Active	NO
2	U74900PN2008PTC132936	Vayugrid Marketplace Services Private Limited	Director	30-08-11	03-09-10	Active	NO


Name :	Mr. Bishwambhar Mishra
Designation :	Director
Address :	38/601, Wishpering Palms, Lokhandwala Township, Akurli Road, Kandivali (East), Mumbai – 400 101, Maharashtra, India
Date of Birth/Age :	12.06.1949
Qualification :	B.E., PGDBM
Date of Appointment :	20.01.2011
DIN No. :	01679139

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	L29211PB1970PLC002942	Punjab Tractors Limited	Director	22-09-07	22-05-07	Amalgamated	NO
2	L45202PB1974PLC003516	Swaraj Automotives Limited	Director	22-09-07	27-07-07	Active	NO
3	L50210PB1985PLC006473	Swaraj Engines Limited	Whole-time director	01-04-10	27-07-07	Active	NO
4	U34100GJ1978PLC003127	Mahindra Gujarat Tractor Limited	Director	06-09-11	20-01-11	Active	NO


Name :	Mr. Radhakanta Tripathy
Designation :	Director
Address :	52, Prarthna Vihar, Manekbaug, P. O. Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	16.05.1953
Qualification :	IAS
Date of Appointment :	03.12.2010
DIN No. :	01985678

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	U45200GJ1988SGC010493	Sardar Sarovar Narmada Nigam Limited	Managing director	16-02-09	05-05-07	09-11-09	Active	NO
2	U91110GJ1968SGC001582	Gujarat Agro-Industries Corporation Limited	Director	22-01-10	11-12-09	-	Active	NO
3	U65410GJ1975SGC002693	Gujarat State Seeds Corporation Limited	Director	02-03-10	02-03-10	-	Active	NO
4	U45201GJ1978SGC003124	Gujarat State Land Development Corporation Limited	Nominee director	13-04-10	13-04-10	-	Active	NO
5	L24110GJ1976PLC002903	Gujarat Narmada Valley Fertilizers Company Limited	Director	17-09-11	20-10-10	-	Active	NO
6	U34100GJ1978PLC003127	Mahindra Gujarat Tractor Limited	Director	06-09-11	03-12-10	-	Active	NO


Name :	Mr. Avinash Anant Patankar
Designation :	Director
Address :	Waverly, Flat No. 10, 5^th Floor, Sarojini Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	26.02.1956
Date of Appointment :	08.04.2011
DIN No. :	03443547

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	U34100GJ1978PLC003127	Mahindra Gujarat Tractor Limited	Director	06-09-11	08-04-11	Active	NO


Name :	Mr. Brij Lal Khanna
Designation :	Special Director
Address :	H-454, New Rajinder Nagar, New Delhi – 110 060, India
Date of Birth/Age :	02.12.1946
Date of Appointment :	10.08.2011
DIN No. :	00841927

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	U74899DL1980PTC010781	Bansal Properties Private Limited	Director	21-08-95	21-08-95	Active	NO
2	L17124RJ1976PLC001869	Modern Terry Towels Limited	Nominee director	04-02-11	04-02-11	Active	NO
3	L27100MH1970PLC014621	Lloyds Steel Industries Limited	Nominee director	04-02-11	04-02-11	Active	NO
4	U34100GJ1978PLC003127	Mahindra Gujarat Tractor Limited	Nominee director	10-08-11	10-08-11	Active	NO


Name :	Mr. Manish Kumar Verma
Designation :	Additional Director
Address :	Bunglow G 19, Sector 9, Gandhinagar – 382 009, Gujarat, India
Date of Birth/Age :	01.08.1970
Date of Appointment :	30.09.2011
DIN No. :	01804936

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	U67120GJ1998SGC033768	GSFS Capital and Securities Limited	Director	17-03-07	17-03-07	-	Active	NO
2	L65990GJ1983PLC006345	Gujarat Lease Financing Limited	Director	13-09-07	23-05-07	29-05-08	Active	NO
3	U51100GJ1979SGC003391	Gujarat Rural Industries Marketing Corporation Limited	Director	18-12-07	18-12-07	-	Active	NO
4	U22219GJ1973SGC002360	Gujarat State Handloom And Handicrafts Development Corporation Limited	Director	29-12-07	29-12-07	-	Active	YES
5	U74999GJ1994SGC022952	Alcock Ashdown (Gujarat) Limited	Director	30-05-08	30-05-08	-	Active	NO
6	U40102GJ2003SGC042906	Uttar Gujarat Vij Company Limited	Additional director	07-06-11	07-06-11	30-09-11	Active	NO
7	U65910GJ1992SGC018602	Gujarat State Financial Services Limited	Director	30-06-11	30-06-11	-	Active	NO
8	U34100GJ1978PLC003127	Mahindra Gujarat Tractor Limited	Additional director	30-09-11	30-09-11	-	Active	NO
9	U75140GJ1977SGC003025	Gujarat State Rural Development Corporation Limited	Director	23-11-11	23-11-11	-	Active	NO


Name :	Mr. Chandrasekar Kandasamy
Designation :	Additional Director
Address :	DII/53, Mahindra Park, LBS Marg, Ghatkopar, Mumbai – 400 086, Maharashtra, India
Date of Birth/Age :	08.01.1954
Date of Appointment :	11.11.2011
DIN No. :	01084215

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	U01409MH2000PLC125781	Mahindra Shubhlabh Services Limited	Director	25-07-07	22-12-06	Active	NO
2	U30007MH1991PLC064368	Bristlecone India Limited	Director	25-07-08	17-09-07	Active	NO
3	U63000MH2007PLC173466	Mahindra Logistics Limited	Director	10-09-08	03-10-07	Active	NO
4	U35999MH2008PLC180385	Mahindra First Choice Services Limited	Director	22-07-09	24-03-08	Active	NO
5	U30007MH1994PLC081637	Mahindra Sona Limited	Additional director	02-08-10	02-08-10	Active	NO
6	U74990MH2010PTC207854	Mahindra EPC Services Private Limited	Director	23-09-11	05-10-10	Active	NO
7	U34100GJ1978PLC003127	Mahindra Gujarat Tractor Limited	Additional director	11-11-11	11-11-11	Active	NO

KEY EXECUTIVES

Name :	Mr. Shri Om Tyagi
Designation :	Manager
Address :	A-305, Vidyut Nagar, Prince Road, Ajmer Road, Jaipur – 302 015, Rajasthan, India
Date of Birth/Age :	10.06.1960
Date of Appointment :	28.04.2011
PAN No. :	AAKPT9387K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 06.09.2011

Names of Equity Shareholders	Address	No. of Shares
Governor of Gujarat, India	Sachivalaya, Gandhinagar – 382 010, Gujarat, India	6120784
Governor of Gujarat, India Jointly with D. R. Patel	Sachivalaya, Gandhinagar – 382 010, Gujarat, India	1
Governor of Gujarat, India Jointly with Deviben Pandya	Sachivalaya, Gandhinagar – 382 010, Gujarat, India	1
Governor of Gujarat, India Jointly with B. R. Shah	Sachivalaya, Gandhinagar – 382 010, Gujarat, India	1
Mahindra and Mahindra Limited, India	Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra, India	1683211
Mahindra and Mahindra Limited, India Jointly with C Krishnadas	Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra, India	1
Mahindra and Mahindra Limited, India Jointly with A. M. Choksey	Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra, India	1
Mahindra and Mahindra Limited, India Jointly with S. Durgashankar	Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra, India	1
Governor of Gujarat, India Jointly with M. B. Patel	Sachivalaya, Gandhinagar – 382 010, Gujarat, India	1
Governor of Gujarat, India Jointly with S. K. Patel	Sachivalaya, Gandhinagar – 382 010, Gujarat, India	1
Governor of Gujarat, India Jointly with M. A. Multani	Sachivalaya, Gandhinagar – 382 010, Gujarat, India	1
Mahindra Holdings Limited, India	Mahindra Towers, P. K. Kurne Chowk, Worli, Mumbai – 400 018, Maharashtra, India	7497970
Mahindra and Mahindra Limited, India Jointly with Ashok Kumar Panara	Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra, India	1
Mahindra and Mahindra Limited, India Jointly with S. O. Tyagi	Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra, India	1
Mahindra and Mahindra Limited, India Jointly with Bishwambhar Mishra	Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra, India	1
Mahindra and Mahindra Limited, India Jointly with Avinash Patankar	Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra, India	1
Governor of Gujarat, India Jointly with S. P. Sisodiya	Sachivalaya, Gandhinagar – 382 010, Gujarat, India	1
Total		15301979

Names of Preference Shareholders	Address	No. of Shares
Governor of Gujarat, India	Sachivalaya, Gandhinagar – 382 010, Gujarat, India	5000000
Total		5000000

As on 06.09.2011

Equity Share Breakup		Percentage of Holding
Category
Government (Central and State)		40.00
Bodies corporate		60.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Tractors.

Product Description :

Product Description	ITC Code
Tractor	8701
IC Engine	8408
Tractor Parts	8708

· Shaktimaan - 30

· Shaktimaan - 35

· MG 312

· MG 353

· MG 405

· MG 453

Brand Names :

"Shaktimaan"

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India

Specialised Commercial Branch, Mandvi, Vadodara – 390 017, Gujarat, India

Facilities :

Secured Loans

As on 31.03.2011

Rs. in millions

As on 31.03.2010

Rs. in millions

Working capital loans banks secured

0.242

12.251

Total

0.242

12.251

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Public deposits unsecured	0.000	0.000
Other debt unsecured	218.210	207.035
Total	218.210	207.035


Banking Relations :	--

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	31, Nutan Bharat Society, Alkapuri, Vadodara – 390 007, Gujarat, India
PAN No.:	AADFD2337G

Holding Company :	Mahindra and Mahindra Limited CIN No.: L65990MH1945PLC004558

Fellow Subsidiaries :	· Mahindra Ugine Steel Company Limited · Mahindra Logistics Limited · Mahindra Engineering Services Limited

CAPITAL STRUCTURE

As on 06.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions
10000000	Preference Shares	Rs.10/- each	Rs.100.000 millions
	Total		Rs.300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15301979	Equity Shares	Rs.10/- each	Rs.153.020 millions
5000000	Preference Shares	Rs.10/- each	Rs.50.000 millions
	Total		Rs.203.020 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		203.020	203.020	203.020
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		21.713	21.713	21.713
4] (Accumulated Losses)		(379.109)	(418.188)	(448.409)
NETWORTH		(154.376)	(193.455)	(223.676)
LOAN FUNDS
1] Secured Loans		0.242	12.251	24.060
2] Unsecured Loans		218.210	207.035	195.633
TOTAL BORROWING		218.452	219.286	219.693
DEFERRED TAX LIABILITIES		0.000	0.000	0.750

TOTAL		64.076	25.831	(3.233)

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		28.064	20.135	21.386
Capital work-in-progress		1.780	3.639	1.289

INVESTMENT		0.461	0.461	0.461
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	155.157	131.533	142.888
	Sundry Debtors	54.904	53.130	50.922
	Cash & Bank Balances	98.813	13.827	26.562
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.745	11.164	10.589
Total Current Assets		323.619	209.654	230.961
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	122.992	64.953	127.061
	Other Current Liabilities	114.864	90.095	83.259
	Provisions	51.992	53.010	47.010
Total Current Liabilities		289.848	208.058	257.330
Net Current Assets		33.771	1.596	(26.369)

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		64.076	25.831	(3.233)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating Revenue, Net	858.797	750.964	731.172
		Other Income	14.966	10.866	9.806
		TOTAL (A)	873.763	761.830	740.978

Less	EXPENSES
		Consumption materials changes inventories	627.333	543.233	732.856
		Manufacturing service costs	15.320	11.889
		Employee related expenses	81.822	82.752
		Administrative selling other expenses	90.940	73.909
		Research development expenditure	0.723	1.195
		TOTAL (B)	816.138	712.978	732.856

Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		57.625	48.852	8.122

Less	INTEREST FINANCIAL CHARGES (D)		14.041	15.833	16.677

	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		43.584	33.019	(8.555)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.505	3.548	4.376

	PROFIT/LOSS BEFORE TAX (E-F) (G)		39.079	29.471	(12.931)

Less	TAX (H)		0.000	(0.750)	0.990

	PROFIT/LOSS AFTER TAX (G-H) (I)		39.079	30.221	(13.921)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(418.188)	(448.409)	(434.488)

	BALANCE CARRIED TO THE B/S		(379.109)	(418.188)	(448.409)

	Earnings Per Share (Rs.)		2.23	1.65	(1.23)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.47	3.97	(1.88)

Net Profit Margin (PBT/Sales)	(%)	4.55	3.92	(1.77)

Return on Total Assets (PBT/Total Assets}	(%)	11.11	12.83	(5.12)

Return on Investment (ROI) (PBT/Networth)		(0.25)	(0.15)	0.06

Debt Equity Ratio (Total Liability/Networth)		(3.29)	(2.21)	(2.13)

Current Ratio (Current Asset/Current Liability)		1.12	1.01	0.90

LOCAL AGENCY FURTHER INFORMATION

CONTINGENT LIABILITIES (As on 31.03.2011)

· Guarantees given by the Company to a financial institution for housing loans given by the financial institution to the employees of the Company. An aggregate amount of Rs.0.101 millions was outstanding to be paid by the employees to the financial institution, as at 31st March, 2011.

· Bills discounted but not matured Rs.13.041 millions- represents customers bills discounted.

· Bank Guarantee not provided for Rs.0.550 million issued for Sales Tax

· The Company received a demand of Excise Duty for Rs.7.351 millions on Transmission Assemblies / Chassis Assemblies used in the manufacture of Tractors of less than 25HP, which were exempted from payment of duty, during the period April 1996 to May 1998. The demand is confirmed by the Commissioner of Central Excise and Customs, Vadodara and the Company has filed an appeal in The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai. The CESTAT, Mumbai has remanded the matter for re-determination of exact classification and the rate of duty vide the order dated 28/10/2005. against the order of CESTAT, Mumbai the Company has filed an Appeal with the Supreme Court. Appeal is admitted and tagged withthe Civil Appeal no.6561/2004.

FORM 8

Corporation identity number or foreign company registrations number of the company	U34100GJ1978PLC003127
Name of the company	MAHINDRA GUJARAT TRACTORS LIMITED
Address	Near Vishwamitri Railway Over bridge, Vishwamitri, Vadodara -390 011, Gujarat, India
This Form is for	Modification of charge
Type of Charges	Immovable Property
Particular of the charge holder	State Bank of India Address: Specialised Commercial Branch, Mandvi, Vadodara – 390 017, Gujarat, India Email ID: agm.04086@sbi.co.in
Nature or description of the instrument creating charge	Rectification Agreement
Date of the instrument creating charge	11.11.2006
Amount Secure by the charge	Rs. 100.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest: 11.00% Monthly rest Terms of repayment: working capital – On Demand Margin: 25% on RM, SIP, F, G Extent and operation of the charge: The credit facilities are secured by registered mortgage over the part of company land bearing survey no. 611 of village manjalpur, Vishwamitri , Baroda admeasuring 10 Acres and building thereon. Hypothecation of entire assets of the company consisting of stocks of raw materials , work in progress, finished goods stores and spares and receivables both present and future.
Short particulars of the Property charged	The credit facilities are secured by registered mortgage over the part of company’s land bearing survey no. 611 of village Manjalpur, vishwamitri, Baroda, admeasuring 110 Acres and building thereon. Hypothecation of entire current assets of the company consisting of stock of raw materials, work in progress , finished goods, stores and spares and receivables both present and future.
Particulars of the present modification	Earlier the deed of English mortgage executed covering credit facilities of Rs.100.000 millions stated as term loan only, whereas the document intended to cover various credit facilities aggregating to Rs.100.000 millions. By this execution the charge coverage be modified to cover Term Loan – Rs.15.000 millions CC – Rs.60.000 millions LC Rs.20.000 millions BG – Rs.5.000 millions

FIXED ASSETS

· Freehold Land

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.23
UK Pound	1	Rs.81.55
Euro	1	Rs.69.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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		30

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.

MIRA INFORM REPORT

155.157

54.904

98.813

0.000

14.745

323.619

122.992

114.864

51.992

289.848

33.771

4.47

4.55

11.11

(0.25)

(3.29)

1.12

Unit