MIRA INFORM REPORT

Report Date :

16.02.2011

IDENTIFICATION DETAILS

Name :	BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED
Formerly Known As :	ALLIANZ BAJAJ LIFE INSURANCE COMPANY LIMITED
Registered Office :	Ge Plaza, Airport Road, Yerawada, Pune – 411006, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.03.2001
Com. Reg. No.:	11-15959
CIN No.: [Company Identification No.]	U6601PN2001PLC015959
TAN No.: [Tax Deduction & Collection Account No.]	PNEA03242B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Life Insurance Related Services

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 48000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a Life Insurance Company and a Joint Venture between Allianz Group and Bajaj Auto. It is a well established company having satisfactory track. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are regular and as per commitments. The Company can be considered good 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 – April 1, 2010

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

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

INFORMATION DECLINED BY

Management Non Co- Operative

LOCATIONS

Registered Office :	Ge Plaza, Airport Road, Yerawada, Pune – 411006, Maharashtra, India
Tel. No.:	91-20-66026777/ 30587888/30305858
Fax No.:	91-20-66026789/ 40111502
E-Mail :	life@bajajallianz.co.in
Website :	www.bajajallianzlife.co.in
Customer Care Centre :	Located at: Rajasthan

DIRECTORS

As on 30.07.2010

Name :	Mr. Rahul K. Bajaj
Designation :	Chairman Cum Managing Director
Address :	Bajaj Auto Colony, Mumbai – Pune Road, Akurdi, Pune – 411035, Maharashtra, India
Date of Birth/Age :	10.06.1938
Date of Appointment :	12.03.2001
Name :	Mr. Sanjiv R Bajaj
Designation :	Director
Address :	Bajaj Auto Colony, Mumbai – Pune Road, Akurdi, Pune – 411035, Maharashtra, India
Date of Birth/Age :	02.11.1969
Date of Appointment :	12.03.2001
Name :	Mr. Ranjit K. Gupta
Designation :	Director
Address :	131/24, PCNTD, Nigdi, Pune – 411044, Maharashtra, India
Date of Birth/Age :	19.03.1943
Date of Appointment :	12.03.2001
Name :	Mr. Heinz H. Dollberg
Designation :	Director
Address :	Heilwigstrasse 7A 81825, Munich, Germany
Date of Birth/Age :	29.01.1949
Date of Appointment :	23.04.2001
Name :	Mr. Niraj R. Bajaj
Designation :	Director
Address :	Flat No. 97, Mount Unique, 13^th Floor, 62A, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	10.10.1954
Date of Appointment :	06.03.2008
Name :	Mr. Werner D. Zedellius
Designation :	Director
Address :	AM Suedpark 33 50968 Cologne, Germany
Date of Birth/Age :	16.09.1957
Date of Appointment :	01.01.2002
Name :	Mr. Sanjay K. Asher
Designation :	Director
Address :	No. 32, Mody Street, Mumbai – 400001, Maharashtra, India
Date of Birth/Age :	26.11.1963
Date of Appointment :	06.06.2002
Name :	Mr. Suraj C. Mehta
Designation :	Director
Address :	No. 24, Sonarica 33A, Pedder Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	01.05.1944
Date of Appointment :	06.06.2002
Name :	Mr. Dietmar O. Raich
Designation :	Director
Address :	Hartwald Strasse No. 5, Fellback, Germany
Date of Birth/Age :	16.05.1961
Date of Appointment :	06.03.2008
Name :	Mr. Serajul H. Khan
Designation :	Director
Address :	181 Antariksha Apts, 95/96 Ameva 1210/8 K P Kulkarni Road, Shivaji Nagar, Pune – 411005, Maharashtra, India
Date of Birth/Age :	01.07.1938
Date of Appointment :	22.09.2006
Name :	Mr. Manu P. Tandon
Designation :	Director
Address :	16 Solitaire 4 Samadhi Road, Off. Pune Nagar Road, Pune – 400026, Maharashtra, India
Date of Birth/Age :	24.07.1943
Date of Appointment :	22.09.2007
Name :	Mr. Kamesh G. Goyal
Designation :	Alternate Director to Dr. Werner Zedelius
Address :	244/254, Clover Water Garden Kalyani Nagar, Pune – 411006, Maharashtra, India
Date of Birth/Age :	25.05.1966
Date of Appointment :	06.03.2008
Name :	Mr. Sameer M. Bakshi
Designation :	Director
Address :	E-3, Konark Campus, Viman Nagar, Pune, Maharashtra, India
Date of Birth/Age :	20.04.1979
Date of Appointment :	12.02.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.07.2010

Names of Shareholders	No. of Shares
Bajaj Finserv Limited, India	111524060
Allianz Se, India	39184340
Bajaj Finserv Limited, India Jointly Rahul K. Bajaj	100
Bajaj Finserv Limited, India Jointly Mr. Niraj R. Bajaj	100
Bajaj Finserv Limited, India Jointly Mr. Sanjiv R. Bajaj	100
Bajaj Finserv Limited, India Jointly Mr. Ranjit K. Gupta	100
Bajaj Finserv Limited, India Jointly Mr. Kevin D Sa	100
Bajaj Finserv Limited, India Jointly Mr. Sridhar J	100
Total	150709000

As on 30.07.2010

Equity Shares break-up

Sr.No.	Category	Percentage
1.	Foreign holdings (Foreign institutional investor(s), Foreign comanie(s) Foreign financial institution(s), Non-resident indian(s) or overseas corporate bodies or others	26.00
2.	Bodies Corporate	74.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Life Insurance Related Services

Products :

UNIT LINKED Regular Premium New UnitGain Super UnitGain Plus Gold New UnitGain Plus New UnitGain YoungCare YoungCare Plus New FamilyGain-R Single Premium New UnitGain Premier SP New UnitGain Plus SP PENSION Annuity Pension Guarantee Retirement Future Income Generator Swarna Vishranti New UnitGain Easy Pension Plus RP New UnitGain Easy Pension Plus SP Future Secure TRADITIONAL Endowment InvestGain SaveCare Economy SP Life Time Care Super Saver Money Back CashGain TERM PLANS Protector Term Care New Risk Care WOMEN INSURANCE Miss Confident Plans HEALTH Care First Health Care Family CareFirst CHILDREN PLAN ChildGain JUST LAUNCHED Family Assure Fortune Plus CenturyPlus II UnitGain Protection Plus Invest Plus Group Seva Plan GROUP Non Employer Employee Credit Shield Group Term Life(Non Employer Employee) Group Suraksha Swayam Shakti Suraksha Group Loan Protector Group Income Protection Employer Employee Group Term Life(Employer Employee) New Group Gratuity Care New Group Superannuation Care Group Save Plus Group Term Life in lieu of EDLI Group Leave Encashment Scheme Group Annuity Group Superannuation Gold Group Gratuity Gold MICRO INSURANCE Alp Nivesh Yojana Jana Vikas Yojana Saral Suraksha Yojana ADDITIONAL RIDER BENEFITS Unit Linked Additional Rider Benefits UL Waiver of Premium Benefit UL Family Income Benefit Non Unit Linked Additional Rider Benefits

GENERAL INFORMATION

No. of Employees :	Not divulged by the Management
Bankers :	HDFC Bank Limited Axis Bank Syndicate Bank Standard Chartered Bank Deutsche Bank

Banking Relations :	-
Auditors :
Name :	Dalal and Shah Chartered Accountant
Address :	252. Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai-400028, Maharashtra, India
Holding Company :	Bajaj Finserv Limited L65923PN2007PLC130075
Group Companies :	Bajaj Finserv Limited Bajaj Auto Finance Limited Bajaj Allianz General Insurances Company Limited Bajaj Allianz Financial Distributors Limited Allianz SE Allianz Insurances Management Asia Pacific Pte. Limited Allianz SE Reinsurance Branch Asia Pacific Allianz Life Insurance Malaysia Berhad Hind Musafir Agency Limited

CAPITAL STRUCTURE

As on 30.07.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.10/- each	Rs.2000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
150709000	Equity Shares	Rs.10/- each	Rs.1507.090 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital	1507.090	1507.090	1507.090
2] Reserves & Surplus	10599.550	10599.550	10599.550
3] Credit / Debit Fair Value Change Account	0.000	0.000	0.102
NETWORTH	12106.640	12106.640	12106.742
BORROWINGS	0.000	0.000	0.000
POLICYHOLDER’S FUNDS
1) Credit / Debit Fair Value Change Account	28.433	7.014	99.460
2) Policy Liabilities
Participating :
Individual Assurance	15240.119	11319.055	7956.912
Individual Pension	376.166	350.390	283.864
Non – Participating
Individual Assurance	1030.552	191.904	169.977
Individual Health	160.464	106.164	33.645
Individual Anniuty	183.950	101.389	62.357
Group Assurances	4171.640	1222.238	314.661
Linked :
Individual Assurances	8670.678	4501.717	1728.642
Individual Pension	448.819	194.008	74.888
Group	11.016	11.342	4.100
Total	30293.404	17998.207	10629.046
3) Insurance Reserves	0.000	0.000	0.000
4) Provisions for Linked Liabilities
Linked Liabilities	238974.031	159828.323	109527.505
Fair Value Change	45172.123	[19175.325]	14.192
Total	284146.154	140652.998	109541.697
Sub-Total (1+2+3+4)	314467.991	158658.219	120270.203
FUNDS FOR FUTURE APPROPRIATIONS
Participating :
Individual Assurance	994.530	918.099	877.422
Individual Pension	29.134	1.860	2.392
Non – Participating
Individual Assurance	0.000	43.964	35.173
Individual Health	0.000	94.719	30.612
Individual Anniuty	0.000	2.708	3.809
Group Assurances	0.000	9.996	0.000
Linked :
Individual Assurances	0.000	0.000	0.000
Individual Pension	0.000	0.000	0.000
Group	0.000	0.641	0.000
Total	1023.664	1071.987	949.408
Reserve For Lapsed Unit Linked Policies	3874.569	3951.268	2960.433
TOTAL	330449.200	175788.114	136286.786
APPLICATION OF FUNDS
INVESTMENTS
Shareholders’	15453.830	7695.214	11458.855
Policyholders’
Participating :
Individual Assurance	16305.353	12244.503	8974.379
Individual Pension	406.605	354.548	287.815
Non – Participating
Individual Assurance	1036.320	238.972	205.672
Individual Health	254.354	201.337	64.511
Individual Anniuty	184.115	104.611	66.586
Group Assurances	4428.070	1240.846	314.840
Linked :
Individual Assurances	11522.213	8473.612	4690.975
Individual Pension	453.016	337.669	75.066
Group	32.281	21.050	7.124
Total	34622.327	23217.148	14686.968
ASSETS HELD TO COVER LINKED LIABILITIES	284146.154	140652.998	109541.697
LOANS	130.275	76.970	30.937
FIXED ASSETS [NET BLOCK]	1512.548	1219.585	909.622
CAPITAL WORK-IN PROGRESS	281.487	424.832	181.056
CURRENT ASSETS :
Cash and Bank Balances	2186.908	3552.963	3785.262
Advances and Other Assets	3111.630	1828.423	1310.069
Sub-total	5298.538	5381.386	5095.331
LESS: CURRENT LIABILITIES AND PROVISIONS
Sundry Creditors		3110.997	5910.554
Other Current liability	10518.711	4941.359	4387.670
Provisions	660.226	433.509	218.490
Sub-total	11178.937	8485.865	10516.714
Net Current Assets	(5880.399)	(3104.479)	(5421.383)
MISCELLANEOUS EXPENDITURE	0.000	0.000	0.000
DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT	182.978	5605.846	4899.034
TOTAL	330449.200	175788.114	136286.786

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
Amounts Transferred from the Policyholder’s Account	5244.762	41.548	32.706
INCOME FROM INVESTMENTS
a) Interest, Dividend and Rent – Gross	983.412	846.251	764.027
b) Profit on sale / redemption of investments	106.342	79.971	53.980
c) loss on sale / redemption of investments	(5.378)	[19.473]	(22.971)
d) Transfer / Gain on revaluation / change in fair value	0.000	0.000	0.000
OTHER INCOME	0.000	0.000	0.000
TOTAL (A)	1084.376	906.749	795.036
Expenses other than those directly related to the insurance business	64.732	15.943	14.740
Others	0.000	0.000	0.000
Provisions (Other than Taxation)
Contributions to the Policyholder’s Fund
Participating :
Individual Assurance	0.000	0.000	0.000
Individual Pension	0.000	0.000	0.000
Non – Participating
Individual Assurance	185.031	0.000	0.000
Individual Health	0.000	0.000	0.000
Individual Anniuty	0.000	0.000	0.000
Group Assurances	0.000	0.000	11.257
Linked :
Individual Assurances	509.432	1290.084	2539.007
Individual Pension	0.000	348.191	365.506
Group Superannuation	0.000	0.000	4.391
Group Gratuity	0.000	0.806	31.666
Total	694.463	1639.081	2951.827
TOTAL (B)	759.195	1655.024	2966.567
Profit / Loss Before Tax	5569.943	(706.727)	(2138.825)
Provision for Taxation including Wealth Tax	147.075	0.085	0.080
Profit / Loss After Tax	5422.868	(706.812)	(2138.905)
Balance at the beginning of the year	(5605.846)	(4899.034)	(2760.129)
Profit / Loss carried forward to Balance Sheet	(182.978)	(5605.846)	(4899.034)
Earning Per Share (Basic and Diluted)	35.98	(4.69)	(14.22)

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	NA	3110.997	5910.554

Market scenario in the life insurance industry:

Life Insurance industry in India has seen rapid growth from the opening up of the sector in 2000-01 till 2009 –10. Total premiums of the industry, which were Rs 500 Bn in 2001-02, more than quadrupled to Rs 2,218 Bn in 2008-09, which is a compounded annual growth rate in total premium of 18%. The number of policies sold by life insurers in 2009-10 was over 53 Mn as against 25 Mn in 2001-02. Clearly, the life insurance industry is one of the shining stars of the Indian economic engine. From a sector dominated by LIC it has at present 22 companies in the private sector. While penetration levels at 4% of GDP have increased significantly, the per capita spend on

insurance is quite low as compared to other countries and also less than half that of China (USD 105.4). Life insurance funds accounted for 19.5% of the total household savings as compared to 15.1% in 2004-05.

During the year life insurance industry saw a sharp recovery by recording a growth of 25.5% in the year 2009-10, overcoming a decline of 6.3% in the previous fiscal. The 23 life insurers have mobilized a first year premium of Rs 1092.9 Bn in 2009-10 compared to Rs 871.1 Bn in the previous year. The market share of LIC has increased from 60.8% to 64.9% while that of the private players has been reduced from 39.2% to 35.1%. However, it should be noted that growth is coming in single premium and group products which offer lesser commission for distributors and has lesser expense allowance for the company. Going forward the challenge is to keep expense under tight control and increasing productivity (number of polices per agent) so that distributors can work even on low commission.

In order to enhance clarity and to ensure that the charges levied in Unit Linked products are reasonable to the services being provided and clearly understandable by the customers, Insurance Regulatory and Development Authority (IRDA) had mandated an overall cap on charges levied on Unit Linked Insurance Products (ULIPs). Accordingly, the Company has modified all its products to adhere to the norms set forth by the Regulator. Further, in order to ensure that the insurers have in place good governance practices, IRDA has issued comprehensive corporate governance guidelines for implementation from April 1, 2010. Additionally, in order to help all the stakeholders including customers to analyse various data pertaining to all the insurance companies, IRDA has also issued disclosure norms for all insurance companies which provide the formats, mode and the periodicity of disclosure by the insurance companies. IRDA has also made it mandatory for the insurers to collect Permanent Account Number of the customer in all cases wherein the annualised premium of the policy exceeds Rs.0.100 millions.

Life insurance industry will have to take active steps to increase awareness amongst customers about traditional policies and also train the sales force in these products. Over dependence on ULIPs with volatile stock market can make life insurance policies short –term. The need is to come out with guarantees over long term which would require insurance companies to hedge their investments, this is presently not permitted under the regulations.

Summary of operations for the year:

Business Performance

The Company has retained the third position amongst the private life insurers on the basis of new business premium for the financial year 2009-10. It wrote new business of Rs. 44.5 Bn compared to Rs. 44.9 Bn in the previous year registering a marginal negative growth rate of 1%. The market share of the Company dropped to 4.1% compared to 5.2% in the previous year. The Company is at second position among the private life insurers on total new business policy basis and third in terms of new business premium, with 2.23 Mn policies issued for the year 2009-10 as compared to 2.59 Mn policies issued in the previous year. The gross premium written for the financial year 2009-10 was Rs. 114.2 Bn, as compared to Rs. 106.2 Bn in the previous year, registering a growth of 7.5%. The growth in the gross written premium was due to the increase in renewal collections from Rs. 61.3 Bn in the previous year to Rs. 69.7 Bn in the current year, an increase of 13.6% over the collections of the previous year.

The Company earned a profit of Rs.4,274 Mn during 2009-10, as compared to a profit of Rs. 407 Mn in the previous year. The same has been achieved due to focus on expense management, profitability management and charges earned on policies in force.

After distribution of current year's Surplus from the revenue account to the Shareholders, shareholders' profit stands at Rs. 4,170 Mn. In addition to the distribution of surplus to the shareholders, there has been a transfer of Rs. 1,253 Mn from Funds for Future Appropriation (including Rs 1,100 Mn on account of release from “Reserve for Lapsed unit linked policies unlikely to be revived”). The total Shareholders' profit after tax thus stands at Rs 5,423 Mn compared to a loss of Rs 707 Mn in the previous year.

The investments under management as on 31st March 2010 were Rs. 334.22 Bn which included shareholder investments Rs. 15.45 Bn; traditional policyholder investments Rs. 34.62 Bn and Unit linked investments of Rs. 284.15 Bn. The total investments under management of the Company have increased by over 95% from Rs. 171.57 Bn in the previous year.

The traditional portfolios were managed keeping in mind the regulatory asset allocation requirements. The performance of the ULIP funds, for the year ended 31st March 2010 was excellent. The Company's cash funds delivered returns of 8.5% to 9.25%, outperforming the CRISIL Composite Liquid Index by 550 basis points while the bond funds outperformed the CRISIL Composite Bond Index by over 400 basis points without taking on additional credit or interest rate risks. The Company's diversified equity funds have delivered returns that are in line with or better than the benchmark Nifty Index. Investors in the large cap equity funds have got absolute returns in the region of 70% to 80% in the year while those in the mid cap funds have got absolute returns of 100% to 135% in the year.

Fixed Assets:

• Computer Software
• Land – Freehold
• Leasehold Properties
• Buildings
• Electrical Fittings
• Furniture and Fittings
• Information Technology Equipment
• Air Conditions
• Vehicles
• Office Equipments

Website Details:

Profile:

Subject is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv.

Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over Rs.5.500 millions). Allianz SE has over 115 years of financial experience and is present in over 70 countries around the world.

At Subject, customer delight is their guiding principle. Their business philosophy is to ensure excellent insurance and investment solutions by offering customised products, supported by the best technology.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.45
UK Pound	1	Rs.72.90
Euro	1	Rs.61.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
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	5
--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		51

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.