MIRA INFORM REPORT

Report Date :

13.12.2011

IDENTIFICATION DETAILS

Name :	TAFE MOTORS AND TRACTORS LIMITED
Registered Office :	No.35, Nungambakkam High Road, Chennai – 600 034, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	24.02.2005
Com. Reg. No.:	18-055476
Capital Investment / Paid-up Capital :	Rs.100.000 Millions
CIN No.: [Company Identification No.]	U29211TN2005PLC055476
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Tractors, Agro Engines and Related Products.
No. of Employees :	2500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (58)

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 16363000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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

Name :	Ms. Akanksha
Designation :	Export Manager
Contact No.:	91-9893026671

LOCATIONS

Registered Office :	No.35, Nungambakkam High Road, Chennai – 600 034, Tamilnadu, India
Tel. No.:	91-44-28279073/ 28220393/ 28220393
Mobile No.:	91-9893026671 (Ms. Akanksha)
Fax No.:	91-44-28260224
E-Mail :	guru@tafe.co.in abasedia@tmtl.co.in
Website :	http://www.tafe.com
Factory 1 :	Tractor Division: Plot No.1, Sector-D, Industrial Area, Mandideep, District Raisen – 462 046, Madhya Pradesh, India
Tel. No.:	91-7480-507680/ 503697/ 503698
Factory 2 :	Engine Division: Itarana Road, Alwar – 301 001, Rajasthan, India
Factory 3 :	Transmission Division: Plot No.29-30, Sector II, Parwanoo – 173 220, Himachal Pradesh, India

DIRECTORS

As on 12.08.2011

Name :

Ms. Mallika Venu Srinivasan

Designation :

Director

Address :

West Side House, 3 Adyar Club, Gate Road, Chennai – 600 028, Tamilnadu, India

Date of Birth/Age :

19.11.1959

Date of Appointment :

24.02.2005

DIN No.:

00037022

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	U45201TN1983PTC010043	Trust Properties Development Company Private Limited	Director	27-06-83	27-06-83	-	Active	NO
2	U15499TN1992PLC023544	Tafe Access Limited	Director	04-05-94	04-05-94	-	Active	NO
3	U29129TN1960PLC004337	Tractors and Farm Equipment Limited	Whole-time director	22-12-09	27-12-94	-	Active	NO
4	U80100AP1997NPL036631	Indian School of Business	Director	29-09-02	29-09-02	-	Active	NO
5	U50300TN2003PLC051918	Tafe Reach Limited	Director	07-11-03	07-11-03	-	Active	NO
6	U29211TN2005PLC055476	Tafe Motors and Tractors Limited	Director	24-02-05	24-02-05	-	Active	NO
7	U01132TN2006PLC061095	Emerald Haven Estates Limited	Director	13-09-06	13-09-06	27-11-07	Active	NO
8	L15491WB1962PLC031425	Tata Global Beverages Limited	Director	01-09-09	22-10-08	-	Active	NO
9	L01132TZ1922PLC000234	The United Nilgiri Tea Estates Company Limited	Director	25-01-11	25-01-11	-	Active	NO
10	U34107TN2001PTC047925	Stanadyne Amalgamations Private Limited	Director	30-03-11	30-03-11	-	Active	NO

Name :

Mr. Srinivasan Natesan

Designation :

Director

Address :

T 18, 6^th Avenue, Besant Nagar, Chennai – 600 090, Tamilnadu, India

Date of Birth/Age :

11.10.1944

Date of Appointment :

24.02.2005

DIN No.:

00004195

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	L65191TN1985PLC012362	India Cements Capital Limited	Director	10-10-90	10-10-90	-	Active	NO
2	L85110KA1948PLC000545	Ador Multi Products Limited	Director	05-07-93	05-07-93	24-07-08	Active	NO
3	U29129TN1960PLC004337	Tractors and Farm Equipment Limited	Director	22-02-95	22-02-95	-	Active	NO
4	L85110KA1915PLC000740	United Breweries (Holdings) Limited	Director	25-08-97	25-08-97	-	Active	NO
5	L01132TZ1913PLC000350	The Peria Karamalai Tea and Produce Company Limited	Director	10-09-97	10-09-97	02-08-07	Active	NO
6	U63011MH1993PTC129858	UT Worldwide (India) Private Limited	Alternate director	07-12-97	07-12-97	-	Active	NO
7	U31400TN1955PLC080755	Amco Batteries Limited	Director	13-06-98	13-06-98	21-09-11	Active	NO
8	L21010AP1964PLC001008	The Andhra Pradesh Paper Mills Limited	Director	04-09-98	04-09-98	06-12-11	Active	NO
9	L01132TZ1922PLC000234	The United Nilgiri Tea Estates Company Limited	Director	30-06-99	30-06-99	-	Active	NO
10	U65991TN1994PTC026666	Fairmeans Investments Private Limited	Director	22-08-99	22-08-99	15-12-08	Active	NO
11	U67190TN2000PTC044564	Paterson Consulting Group Private Limited	Director	28-03-00	28-03-00	-	Active	NO
12	L63011AP1995PLC020121	Gati Limited	Director	18-10-00	18-10-00	-	Active	NO
13	L31909KA1974PLC020010	Ador Fontech Limited	Director	21-10-04	21-10-04	-	Active	NO
14	U29211TN2005PLC055476	Tafe Motors and Tractors Limited	Director	24-02-05	24-02-05	-	Active	NO
15	L85110GJ1975PLC054824	Essar Ports Limited	Director	28-04-05	28-04-05	22-05-11	Active	NO
16	L26942TN1946PLC000931	The India Cements Limited	Director	07-08-09	30-09-06	-	Active	NO
17	L05190KA2004PLC033485	Mcdowell Holdings Limited	Director	28-12-06	06-11-06	-	Active	NO
18	U67200TN2002PTC048428	Unique Receivable Management Private Limited	Director	24-11-06	24-11-06	27-05-11	Active	NO
19	U52321TN1992PTC022428	S.G.P. Exim Private Limited	Director	22-01-07	22-01-07	04-10-09	Active	NO
20	L29221TN1956PLC000204	Best and Crompton Engineering Limited	Director	22-09-07	31-01-07	-	Active	NO
21	U29309TN1996PTC036527	SCM Microsystems (India) Private Limited	Director	27-06-08	30-06-07	-	Active	NO
22	L32109MH1970PLC014509	UB Engineering Limited	Director	01-08-08	14-09-07	-	Active	NO
23	U74899DL1987PTC027143	Indair Carriers Private Limited	Alternate director	29-09-07	29-09-07	-	Active	NO
24	L52599TN1961PLC028758	Redington (India) Limited	Director	24-07-09	26-07-08	-	Active	NO
25	U61200GJ2010PLC060285	Essar Shipping Limited	Director	09-09-11	23-05-11	-	Active	NO
26	U63090TN2009PLC072875	Kartiken Logistics Limited	Additional director	12-08-11	12-08-11	-	Active	NO

Name :

Mr. Ramesh Chander Banka

Designation :

Director

Address :

New No.6, Old No.14, 1^st Avenue, Harrinton, Chennai – 600 031, Tamilnadu, India

Date of Birth/Age :

15.10.1934

Date of Appointment :

24.02.2005

DIN No.:

00036997

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	U29129TN1960PLC004337	Tractors and Farm Equipment Limited	Whole-time director	01-04-09	06-08-99	Active	NO
2	U29211TN2005PLC055476	Tafe Motors and Tractors Limited	Whole-time director	21-08-09	24-02-05	Active	NO
3	U15499TN1992PLC023544	Tafe Access Limited	Director	25-01-11	25-01-11	Active	NO

KEY EXECUTIVES

Name :	Mr. Krishnamurthy Guruswamy
Designation :	Secretary
Address :	B5, Swamy Narayan, 67, Bajanai Koil ST., Choolaimedu, Chennai – 600 094, Tamilnadu, India
Date of Birth/Age :	14.10.1950
Date of Appointment :	01.01.2008
PAN No.:	AAJPG6644B
Name :	Ms. Akanksha
Designation :	Export Manager
Operations Management :
Name :	Mr. S. Chandramohan
Designation :	Chief Financial Officer
Name :	Mr. T.R. Kesavan
Designation :	Senior Vice President (Marketing and Product Strategy)
Name :	Mr. Anil Sharma
Designation :	Executive Vice President (Technical) (Tractor Division)
Name :	Mr. R.K. Kalia
Designation :	Executive Vice President (Engine Division)
Name :	Mr. B.C. Sachdev
Designation :	Executive Vice President (Transmission Division)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 12.08.2011

Names of Shareholders	Address	No. of Shares
Tractors and Farm Equipment Limited, India	No. 35, Nungambakkam High Road, Chennai – 600 034, Tamilnadu, India	9999940
Jayshree Venkatraman	Sree Krishna, 126, Dr. Radhakrishnan Salai, Chennai – 600 004, Tamilnadu, India	10
VP Ahuja	R583, New Rajinder Nagar, New Delhi – 110 060, India	10
Mallika Srinivasan	West Side House, 3 Adyar Club, Gate Road, Chennai – 600 028, Tamilnadu, India	10
S. Chandramohan	9, Coastal Road, Block II, Flat T3, Sindur Sep Princess, Chennai – 600 090, Tamilnadu, India	10
V. Ramamoorthy	AG 23, New No.46, Shanthi Colony, Anna Nagar, Chennai – 600 040, Tamilnadu, India	10
Sudarsanvenu	West Side House, 2 Adyar Club, Gate Road, Chennai – 600 028, Tamilnadu, India	5
Lakshmivenu	West Side House, 2 Adyar Club, Gate Road, Chennai – 600 028, Tamilnadu, India	5
	Total	10000000

As on 12.08.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Tractors, Agro Engines and Related Products.

Products :

Product Description	Item Code
Tractors, Engines, Gensets, Spares and Components	870130.09

Brand Names :

“EICHER TRACTORS”

Terms :

Selling :

Cash / Credit

Purchasing :

Cash / Credit

PRODUCTION STATUS (AS ON 31.03.2009)

Particulars	Installed Capacity (as certified by the management) Nos.	Actual Production Nos.
Agricultural Tractors	34000	25019**
Engines	49536	22639*
Components @	--	--
Spares @	--	--

Notes:

* Excludes 17206 Nos. used for manufacturing Tractors and 20 Nos. used for captive consumption.

** Excludes 9 Nos. used for Captive consumption

@ Represents items which individually account for less than 10% of total sales.

GENERAL INFORMATION

Customers :

End Users and Others

No. of Employees :

2500 (Approximately)

Bankers :

v HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

v Central Bank of India, Corporate Finance Branch, 803 Anna Salai, Chennai – 600 002, Tamilnadu, India

v State Bank of India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions))	As on 31.03.2009 (Rs. in Millions)
From Bank
Term Loans	375.000	450.000
Car Loan	22.776	21.731
Total	397.776	471.731

Unsecured Loan	As on 31.03.2010 (Rs. in Millions))	As on 31.03.2009 (Rs. in Millions)
From Holding Company*	475.000	475.000
Total	475.000	475.000
* Amount is repayable within one year	475.000	--

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	32, Kadar Navaz Khan Road, Nungambakkam High Road, Chennai – 600 034, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AADFP9359C
Fellow Subsidiaries:	Amalgamation Private Limited Addson and Company Limited Amalgamation Repeo Limited Amco Power Systems Limited Amco Batteries Limited Amco Properties and Investments Limited BBL Daido Private Limited George Oakes Limited India Piston Limited IP Power Cylinder Systems Limited L M Van Moppes Diamond Tools Private Limited Speed-A-Way Private Limited Stanes Agencies Limited Stanes Amalgamated Estates Limited Tafe Access Limited Tafe Reach Limited Tafe USA Inc. Tafe International Trakkor Vetarin
Holding Company :	Tractors and Farm Equipment Limited* CIN No.: U29129TN1960PLC004337 Address: No.35, Nungambakkam High Road, Chennai – 600 034, Tamilnadu, India Tel No.: 91-44-28279073 Fax No.: 91-44-28260224
Holding Company of Tractors and Farm Equipment Limited :	Simpson and Company Limited *
Ultimate Holding Company :	Amalgamations Private Limited *
Fellow Subsidiaries :	v Addisons and Company Limited v Addison Paints and Chemicals Limited v Alpump Limited v Amalgamations Repco Limited* v Amco Batteries Limited v Amco Power Systems Limited v Amco Prosperities and Investments Limited v Associated Printers (Madras) Private Limited v Associated Publishers (Madras) Private Limited v BBL Daido Private Limited v Bimetal Bearings Limited v George Oakes Limited v Higginbothams Private Limited v India Pistons Limited v IP Power Cylinder Systems Limited v IP Rings Limited v India Pistons Repco Limited v L M Van Moppes Diamond Tools India Private Limited v Shardiow India Limited v Simpson and General Finance Company Limited v Speed-A-Way Private Limited v Sri Rama Vilas Service Limited v Stanadyne Amalgamations Private Limited v Stanes Agencies Limited v Stanes Amalgamated Estates Limited v Stanes Motors (South India) Limited v Stanes Tea and Coffee Limited v Stanes Tyres and Rubber Products Limited v Southern Tree Farms Limited v T Stanes and Company Limited v TAFE Access Limited v TAFE Reach Limited v TAFE USA Inc. v TAL Precision Parts Limited v The Madras Advertising Company Private Limited v Wheel and Precision Forgings India Limited v W J Groom and Company Limited v Wallace Cartwright and Company Limited, London
* Represents related parties with whom the Company had transactions during the year.

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
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Note:

The entire paid up capital is held by Tractors and farm Equipment Limited, the holding company along with its nominees.

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		100.000	100.000	100.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3990.700	2951.839	2483.658
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4090.700	3051.839	2583.658
LOAN FUNDS
1] Secured Loans		397.776	471.731	618.805
2] Unsecured Loans		475.000	475.000	475.000
TOTAL BORROWING		872.776	946.731	1093.805
DEFERRED TAX LIABILITIES		0.600	238.400	257.700
Other Deferred Liability		0.000	0.000	200.000
TOTAL		4964.076	4236.970	4135.163
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1595.514	2432.163	2681.954
Capital work-in-progress		15.526	8.502	17.677
INVESTMENT		2990.917	1210.280	999.291
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	377.342	335.072	421.005
	Sundry Debtors	239.526	258.849	228.590
	Cash & Bank Balances	1759.235	1015.393	1012.301
	Other Current Assets	65.954	9.437	41.364
	Loans & Advances	551.778	725.950	170.056
Total Current Assets		2993.835	2344.701	1873.316
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1854.350	1280.029	1010.268
	Other Current Liabilities	601.897	359.559	337.121
	Provisions	175.469	119.088	89.686
Total Current Liabilities		2631.716	1758.676	1437.075
Net Current Assets		362.119	586.025	436.241
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4964.076	4236.970	4135.163

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	12853.445	9835.860	9204.735
		Service Income	113.705	13.052	160.018
		Other Income	289.402	193.047
		TOTAL (A)	13256.552	10041.959	9364.753
Less	EXPENSES
		Materials	8294.414	7237.722	8260.029
		Cost of Services	10.513	10.436
		Employee costs	626.649	534.959
		Other manufacturing, administration and selling expenses	1634.675	1069.281
		TOTAL (B)	10566.251	8852.398	8260.029
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2690.301	1189.561	1104.724
Less	INTEREST & FINANCIAL EXPENSES (D)		84.831	90.163	99.559
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2605.470	1099.398	1005.165
Less/ Add	DEPRECIATION/ AMORTISATION (F)		921.665	348.519	374.244
	PROFIT BEFORE TAX (E-F) (G)		1683.805	750.879	630.921
Less	TAX (H)		528.200	224.200	176.800
	PROFIT AFTER TAX (G-H) (I)		1155.605	526.679	454.121
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1159.290	743.779	370.177
Less	APPROPRIATIONS
		Interim Dividend Paid	35.000	25.000	20.000
		Proposed Final Dividend	65.000	25.000	10.000
		Tax on Dividend	16.744	8.498	5.099
		General Reserves	115.561	52.670	45.420
	BALANCE CARRIED TO THE B/S		2082.590	1159.290	743.779
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB basis	113.949	55.012	23.376
	TOTAL EARNINGS		113.949	55.012	23.376
	IMPORTS
		Raw Materials	2.962	2.475	5.491
		Capital Goods	14.087	21.711	22.815
		Stores & Spares	2.242	2.130	0.000
	TOTAL IMPORTS		19.291	26.316	28.306
	Earnings Per Share (Rs.)		116.58	52.67	45.41

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	8.72	5.24	4.85
Net Profit Margin (PBT/Sales)	(%)	13.10	7.63	6.85
Return on Total Assets (PBT/Total Assets}	(%)	36.69	15.72	13.85
Return on Investment (ROI) (PBT/Networth)		0.41	0.25	0.24
Debt Equity Ratio (Total Liability/Networth)		0.95	0.89	0.98
Current Ratio (Current Asset/Current Liability)		1.14	1.33	1.30

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U29211TN2005PLC055476
Name of the company	TAFE MOTORS AND TRACTORS LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 35, Nungambakkam High Road, Chennai-600034, Tamilnadu, India
Type of charge	Movable Property (not being pledge) Floating Charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
Email	archana.vasudevan@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum relating to Hypothecation of Machinery dated 02 June 2009.
Date of instrument Creating the charge	02.06.2009
Amount secured by the charge	Rs.225.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest MIBOR + 290 bps. Interest shall be payable at monthly rests. Interest shall be payable on the first day of the subsequent month. Interest will be calculated on 365 days basis. Terms of Repayment Repayable on demand. Extent and Operation of the charge Hypothecation by way of first pari passu charge for specific plant and machinery.
Short particulars of the property charged	Hypothecation by way of first pari passu charge for specific plant and machinery All P and M situated at Bhopal. The net value of Plant & Machinery as on 31.03.2008. Description of property - Value (Rs. in Million):- Plant and Machinery - 361.800

FIXED ASSETS:

v Land Leasehold

v Land Freehold

v Buildings

v Plant and Machinery

v Furniture and Fittings

v Office Equipments

v Vehicles

v Goodwill

v Technical Known How

v Trade Mark

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.52.42
UK Pound	1	Rs.81.92
Euro	1	Rs.69.94

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--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		58

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	-

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