MIRA INFORM REPORT

Report Date :

29.12.2011

IDENTIFICATION DETAILS

Name :	OWENS – CORNING (INDIA) PRIVATE LIMITED (w.e.f. 12.05.2011)
Formerly Known as :	OWENS – CORNING (INDIA) LIMITED
Registered Office :	7^th Floor, Alpha Building, Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.07.1995
Com. Reg. No.:	11-124707
Capital Investment / Paid-up Capital :	Rs.1308.130 Millions
CIN No.: [Company Identification No.]	U73100MH1995PTC124707
TAN No.: [Tax Deduction & Collection Account No.]	MUMO01785A
PAN No.: [Permanent Account No.]	AAACO1739M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Trader of Glass Fibre, Roofing Products, etc.
No. of Employees :	400 (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 13800000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Anil
Designation :	Accounts Manager
Contact No.:	91-22-66681700
Date :	28.12.2011

LOCATIONS

Registered Office :	7^th Floor, Alpha Building, Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra, India
Tel. No.:	91-22-66681700
Fax No.:	91-22-66681701
E-Mail :	anil.kaul@owenscorning.com Phani.Kumar@owenscorning.com
Location :	Owned
Corporate Office :	301-310, A Wing, Bonanza, Sahar Plaza Complex, M. V. Road, Andheri (East), Mumbai - 400 059, Maharashtra, India
Tel. No.:	91-22-28398250
Fax No.:	91-22-28398251
Location :	Owned
Factory 1 :	Plot No. T 28, MIDC, Phase 2, Taloja, District Raigarh – 410208, Maharashtra, India
Tel. No.:	91-22-39219100
Fax No.:	91-22-39219101
Location :	Owned
Branches :	Located at: · New Delhi · Mumbai

DIRECTORS

As on 29.09.2011

Name :

Yi Mun Samuel Chi

Designation :

Director

Date of Appointment :

01.03.2011

DIN No.:

00671755

Other Directorship :

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
U26102MH2003FTC143522	Owens Corning Enterprise (India) Private Limited	Director	3/01/2006	3/01/2006	17/03/2008	Active	NO
U73100MH1995PTC124707	Owens-Corning (India) Private Limited	Director	29/09/2011	1/03/2011	-	Active	NO

Name :

Mr. Satish Gopalkrishna Kulkarni

Designation :

Managing director

Date of Appointment :

02.04.2003

DIN No.:

01490481

Other Directorship :

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
U73100MH1995PTC124707	Owens-Corning (India) Private Limited	Managing director	2/04/2003	2/04/2003	-	Active	NO
U26102MH2003FTC143522	Owens Corning Enterprise (India) Private Limited	Director	29/09/2011	3/01/2006	-	Active	NO
U70109MH2007PTC170674	Owens Corning Building Solutions Private Limited	Director	8/05/2007	8/05/2007	-	Strike off	NO
U26102AP1998FTC030183	OCV Reinforcements Manufacturing Private Limited	Director	30/06/2008	1/11/2007	-	Active	NO

Name :

Sangkyoo Han

Designation :

Director

Date of Appointment :

17.03.2008

DIN No.:

01872340

Other Directorship :

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
U26102AP1998FTC030183	OCV Reinforcements Manufacturing Private Limited	Director	30/06/2008	1/11/2007	-	Active	NO
U73100MH1995PTC124707	Owens-Corning (India) Private Limited	Director	25/09/2008	17/03/2008	-	Active	NO
U26102MH2003FTC143522	Owens Corning Enterprise (India) Private Limited	Director	29/09/2008	17/03/2008	1/10/2008	Active	NO

Name :

Mr. Shivanand Narsing Gulvady

Designation :

Alternate director

Date of Appointment :

08.06.2011

DIN No.:

02321203

Other Directorship :

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
U26102AP1998FTC030183	OCV Reinforcements Manufacturing Private Limited	Alternate director	28/08/2008	28/08/2008	31/07/2009	Active	NO
U73100MH1995PTC124707	Owens-Corning (India) Private Limited	Alternate director	8/06/2011	8/06/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Phani Kumar Anupindi
Designation :	Secretary
Date of Appointment :	01.05.2008
PAN No.:	ACDPA8017G
Name :	Mr. Anil
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
IPM Inc. Delaware	78487796
OC NL Invest Cooperatief U. A.	52325196
OC NL Invest Cooperatief U. A jointly with Satish Kulkarni	1
OC NL Invest Cooperatief U. A jointly with Phani Kumar	1
OC NL Invest Cooperatief U. A, Jointly with Mr. Edward Neunuebel	1
OC NL Invest Cooperatief U. A, Jointly with Ms. Claire Dagommer	1
OC NL Invest Cooperatief U. A, Jointly with Ms. Magali Leroux	1
Total	130812997

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Trader of Glass Fibre, Roofing Products, etc.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Rovings	7011200
Mat	7013100

Exports :

Products :

· Glass Fibre

· Yarn Textile

Countries :

· Europe

· Australia

Imports :

Products :

Raw Material

Countries :

· China

· Japan

Terms :

Selling :

L/C/ Cash/ Credit

Purchasing :

L/C/ Cash/ Credit

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity*	Actual Production
Glass Fibre Products
Reinforcements@	Tonnes	51010	50049
Technical Fabrics	Tonnes	10800	9351

* As Certified by the Management.

@ The actual production of reinforcements includes captive consumption of 5,733 Tonnes (Previous Year - 8,419 Tonnes) for Technical Fabrics.

GENERAL INFORMATION

No. of Employees :

400 (Approximately)

Bankers :

· Standard Chartered Bank, Standard Chartered Grindlays Bank, New Delhi

· Standard Chartered Grindlays Bank, Mumbai

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

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

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

Facilities :

Secured Loans	As on 31.03.2011 (Rs. In Millions)	As on 31.03.2010 (Rs. In Millions)
Foreign Currency Term Loan
International Finance Corporation (IFC)	300.934	334.253
Citi Bank NA – Baharin	0.000	113.950
Cash Credit
HDFC Bank Limited	0.000	0.053
Vehicles Loan (Secured by the Underlying assets)	7.521	7.516
Total	308.455	455.772

Amounts repayable within a year aggregate Rs.304.470 Millions(Previous Year Rs.147.485 Millions)

NOTE:

a) The foreign currency Loan is secured by (i) a first pari passu inter-se ranking charges, mortgages over all of the company immovable and tangible and intangible movable (excluding receivable and Inventories) present and future assets (ii) a first ranking charge on the assigned agreements for the exclusive benefic of IFC; and (iii) a second ranking hypothecation/charge/mortgage over all of the company receivable (other than the export receivables) and inventories of the company for the exclusive benefit of IFC subject to prior charge of the working capital leaders.

b) The term loan are fully secured by a first ranking pari passu inter se charges, mortgage over all of the company immovable and tangible movable (excluding receivables and immovable) (Present and future) assets

c) The cash credit is fully secured by a first charge over the current assets of the company.

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	252, Veer Savarakar Marg, Opposite Shivaji Park, Dadar (West), Mumbai - 400028, Maharashtra, India
PAN No.:	AAEFP3641G
Ultimate Holding Company :	Owens Corning Inc., USA
Holding Company :	IPM Inc. Delaware, USA
Substantial Interest in Voting Power of the Company (till November 24, 2010) :	Mahindra and Mahindra Limited (‘M and M’), India
Parties Under Common Control :	· Owens Corning Canada LP, Canada · Owens Corning Veil U.K. Limited, United Kingdom · European Owens Corning Fiberglas Sprl., Belgium · Owens Corning Australia Pty Limited, Australia · Owens Corning Espana SA., Spain · Owens Corning Korea, Korea · Owens Corning Fiberglas France S.A. , France · Owens Corning Enterprise (India) Private Limited, India · Owens Corning (Japan) Limited, Japan · Owens Corning HongKong Limited, Hong Kong · Owens Corning Britinvest Limited, United Kingdom · Owens Corning Mexico S De RL De CV, Mexico · OC NL Invest Cooperatief U.A., Netherlands · OCV Reinforcement Manufacturing Limited, India · Owens Corning Shanghai Composites Co Limited, China OCV Italia SRL., Besana, Italy · Owens Corning (Singapore) Pte Limited, Singapore · OCV Composites (China) Company Limited, China · OCV Reinforcements Hangzhou, China · OCV Fabrics Changzhou Company Limited, China · OCV Reinforcement (Beijing) Co Limited, China · OCV Thailand Company Limited, Thailand · OCV Reinforcements Alcala Spain, S.L, Spain · Owens Corning Manufacturing Limited, Koga, Japan · Owens Corning Veil Netherlands B.V., Netherlands · OCV Chambery International, France · OCV Chambery, France · OCV Fabrics Belgium BVBA, Belgium · Owens Corning Fiberglass A.S. LIMITEDA., Brazil · OCV Czech SRO, Czech Republic · OC Composite Materials LLC, USA · OCV Italia SRL., Besana, Italy · Owens Corning (Singapore) Pte Limited, Singapore · OCV Composites (China) Company Limited, China
Subsidiary of M and M :	· Mahindra and Mahindra Financial Services Limited, India (till November 24, 2010) · Mahindra Intertrade Limited, India (till November 24, 2010)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.10/- each	Rs.2000.000 Millions
2500000	Preference Shares	Rs.100/- each	Rs.250.000 Millions
	Total		Rs.2250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
130812997	Equity Shares	Rs.10/- each	Rs.1308.130 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		1308.130	1308.130	1308.130
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2164.653	1549.972	1219.217
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3472.783	2858.102	2527.347
LOAN FUNDS
1] Secured Loans		308.455	455.772	1011.843
2] Unsecured Loans		0.000	0.000	89.080
TOTAL BORROWING		308.455	455.772	1100.923
DEFERRED TAX LIABILITIES		533.143	513.947	265.828
TOTAL		4314.381	3827.821	3894.098
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3267.516	3135.382	3341.267
Capital work-in-progress		224.042	49.097	43.900
INVESTMENT		0.000	0.000	0.005
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	535.070	450.025	308.951
	Sundry Debtors	649.383	642.513	655.020
	Cash & Bank Balances	266.647	8.018	5.582
	Other Current Assets	1.966	0.931	1.214
	Loans & Advances	173.296	146.645	172.243
Total Current Assets		1626.362	1248.132	1143.010
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	683.397	482.186	543.197
	Other Current Liabilities	55.056	52.636	65.389
	Provisions	65.086	69.968	25.498
Total Current Liabilities		803.539	604.790	634.084
Net Current Assets		822.823	643.342	508.926
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4314.381	3827.821	3894.098

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3879.799	3156.378	3062.870
		Commission (Tax deducted at source Rs.5.859 Millions (Previous Year Rs.8.250 Millions))	54.345	50.417	84.906
		Processing Charges	0.000	0.000	27.724
		Other Income	86.169	133.719	63.178
		TOTAL (A)	4020.313	3340.514	3238.678
Less	EXPENSES
		Material Consumed	833.315	628.084	570.225
		Cost of Traded Goods Sold	263.447	60.667	121.991
		(Increase)/ Decrease in Stock	(96.664)	(18.420)	(63.688)
		Manufacturing Expenses	1112.754	991.489	981.364
		Employee Cost	310.463	293.654	292.790
		Administrative and other expenses	447.361	360.020	631.295
		TOTAL (B)	2870.676	2315.494	2533.977
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1149.637	1025.020	704.701
Less	FINANCIAL EXPENSES (D)		11.973	32.067	97.061
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1137.664	992.953	607.640
Less/ Add	DEPRECIATION/ AMORTISATION (F)		298.615	293.921	289.451
	PROFIT BEFORE TAX (E-F) (G)		839.049	699.032	318.189
Less	TAX (H)		224.367	368.277	186.674
	PROFIT AFTER TAX (G-H) (I)		614.681	330.755	131.515
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		704.656	373.901	242.386
	BALANCE CARRIED TO THE B/S		1319.337	704.656	373.901
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	878.646	896.546	1010.556
		Sale of Fixed Assets	0.000	13.658	0.000
		Commission Earnings	1.224	0.000	1.227
		Scrap Sales	19.416	10.888	10.221
	TOTAL EARNINGS		899.286	921.092	1022.004
	IMPORTS
		Raw Materials	383.663	181.259	233.241
		Other Consumables	58.567	40.354	34.030
		Traded Goods	202.638	106.970	80.615
		Capital Goods	53.146	63.170	28.477
	TOTAL IMPORTS		698.014	391.753	376.363
	Earnings Per Share (Rs.)		4.70	2.53	1.01

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	15.29	9.90	4.06
Net Profit Margin (PBT/Sales)	(%)	21.63	22.15	10.38
Return on Total Assets (PBT/Total Assets}	(%)	17.14	15.95	7.09
Return on Investment (ROI) (PBT/Networth)		0.24	0.24	0.12
Debt Equity Ratio (Total Liability/Networth)		0.32	0.37	0.68
Current Ratio (Current Asset/Current Liability)		2.02	2.06	1.80

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
- Dues to Micro and Small Enterprises	10.943	7.671	10.930
- Others	672.454	474.515	532.267
Total	683.397	482.186	543.197

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%	No
14) Estimation for coming financial year	No
15) Capital in the business	No
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
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	--

Note :

The registered address of the company Mahindra Towers, Ground Floor, Road No. 13, Worli, Mumbai – 400018, Maharashtra, India has been shifted to present address w.e.f. 25.03.2009

BACKGROUND

Owens Corning (India) Limited (‘the Company’) was incorporated in India on July 5, 1995. The Company is involved in the manufacture of glass fiber for use in composites. The Company was converted into a private limited company effective May 12, 2011 and accordingly, the name of company has been changed to Owens-Corning (India) Private Limited.

FINANCIAL HIGHLIGHTS

The revenue of the company grew from Rs.3341 Millions in the financial year 2009-10 to Rs.4020 Millions in the current financial year, representing a growth of 20%. The production of reinforcements for the year was 50049 MT compared to 46043 MT during the previous year.

OPERATIONS REVIEW

The Company continues to be a leading player of glassfibre market in India. The Company recorded sales of 51,194 MT out of own manufactured products of both Reinforcements and Technical Fabrics during the year ended March 31, 2011, as against 46,504 MT of Reinforcements products previous year.

The manufacturing facility continues to pursue various cost saving measures including sourcing, energy efficiency and productivity improvement initiatives. Taloja plant also initiated steps to improve environmental footprint of our manufacturing operations.

The company has been successfully been certified in the Surveillance Audit for the ISO Systems for ISO 9001-2008 version along with 14001 and 18001.

FORM 8

Corporate identity number of the company	U73100MH1995PLC124707
Name of the company	OWENS-CORNING (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	7th Floor, Alpha Building, Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra, India Email Id : Phani.Kumar@owenscorning.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10152059
Type of charge	Immovable property
Particular of charge holder	Hdfc Bank Limited, Hdfc Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai – 400013, Maharashtra, India Email Id : Farid.Virani@hdfcbank.com
Nature of instrument creating charge	Loan amount of INR 250.000 Millions of HDFC Bank Limited has been repaid in full and hence the charge in favour to the extent of INR 250.000 Millions is satisfied
Date of instrument Creating the charge	22.02.2011
Amount secured by the charge	Rs.408.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest IFC: LIBOR +210 basis points Terms of repayment As decided by the bank from time to time Margin As decided by the bank from time to time Extent and operation of the charge 1) First PP charge on all the Company's movable (excluding receivables and inventories) and immovable assets both present and future be created as security for the IFC 2) Assignment of rights of the Company under the Existing Project Documents (as defined in the Mortgage) and a second charge on all the Company's receivables (other than export receivables) and inventories as security for the IFC 2nd loan. As more described in the Indenture of Mortgage Others HDFC Bank Limited is acting as Collateral Agent to the term lender International Finance Corporation
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Property located at Plot No.T-28 in the Taloja Industrial Area, within the village limits of Tondare and Ghot within the limits of Municipal Council, Taluka Panvel, District Raigad, Maharashtra, including assets as per schedule I, II and III and details as per the Charging Clause No. 3.1 in the Indenture of Mortgage dated 30th March, 2009
Particulars of the present modification	Loan amount of INR 250.000 Millions of HDFC Bank Limited has been repaid in full and hence the charge in favour of HDFC Bank Limited to the extent of INR 250.000 Millions is satisfied. HDFC Bank Limited will, though, continue to act as the collateral agent for the charge for the loan facilities of INR 408.000 Millions of International Finance Corporation(IFC)

Contingent Liabilities As on 31.03.2011

(a) Service Tax Matters – Rs.41.991 Millions

(b) Excise Matters – Rs.82.584 Millions

(c) Income Tax Matters – Rs.50.073 Millions

(d) Bank Guarantees issued – Rs.77.600 Millions

FIXED ASSETS:

· Leasehold Land

· Buildings

· Plant and Machinery

· Office Equipments

· Furniture and Fixtures

· Vehicles

· Computers

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.53.21
UK Pound	1	Rs.83.32
Euro	1	Rs.69.51

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--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	YES
--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.