MIRA INFORM REPORT

Report Date :

21.02.2011

IDENTIFICATION DETAILS

Name :	MAHINDRA AUTOMOBILE DISTRIBUTOR PRIVATE LIMITED (w.e.f. Dec. 2010)
Formerly Known As :	MAHINDRA RENAULT PRIVATE LIMITED
Registered Office :	Gateway Building, Apollo Bunder, Mumbai-400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.06.2005
Com. Reg. No.:	11-153702
CIN No.: [Company Identification No.]	U34100MH2005PTC153702
TAN No.: [Tax Deduction & Collection Account No.]	MUMM27339E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Automotive Vehicles.

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	--
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of Mahindra Group. It is an established company having moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Payments are reported to be slow but correct. In view of strong holding, the company can be considered for small to mediocre 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 PARTED BY

Name :	Mr. Sandeep Kulkarni
Designation :	Finance Executive
Contact No.:	91-22-67151700

LOCATIONS

Registered Office :	Gateway Building, Apollo Bunder, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-28460612/ 24916683
Fax No.:	91-22-28858519
E-Mail :	saboo.anil@mahindrarenault.com ogale.pallavi@mahindrafenault.com sheth.yash@mahindra.com
Website :	www.mahindrarenault.com
Area :	7000 sq.ft.
Location :	Owned
Head Office :	Vakil’s House, 1^st Floor, 18, Sprott Road, Ballard Estate, Mumbai-400001, Maharashtra, India
Corporate Office1 :	Ashok Nagar, Chakravorthy Asho, Kandivali (West), Mumai-400101, Maharashtra, India
Tel. No.:	91-22-28460612 / 67151700
Fax No.:	91-22-28858519
Corporate Office 2:	C/O Mahindra and Mahindra Limited- Automotive Sector Division Admin Building, 1^st Floor, Akarli Road, Kandivali (East), Mumbai-400101, Maharashtra, India

DIRECTORS

As on 28.06.2010

Name :	Mr. Rajesh Ganesh Jejurikar
Designation :	Managing Director
Address :	502, Silver Spring, Near Rizvi College, Shirley Rajen Road, Bandra (West), Mumbai-400050, Maharashtra
Date of Birth/Age :	24.06.1964
Date of Appointment :	05.08.2005
DIN No.:	00046823
Directorship in other Companies:	CIN: U1810MH1995PTC095482 NBS International Limited
Name :	Dr. Pawan Kumar Goenka
Designation :	Director
Address :	Flat No.602, 9^th JVPD, 10^th Road, Vile Parle (West), Mumbai-400056, Maharashtra
Date of Birth/Age :	23.09.1954
Date of Appointment :	27.04.2006
DIN No.:	00254502
Directorship in other Companies:	· CIN of the Company: L72400MH1995PLC091404 Mahindra Engineering Design and development Company limited Designation: Director · CIN of the Company: U65921MH1991PTC059642 Mahindra and Mahindra Financial Services limited Designation : director · CIN of the Company: L51900MH1978PLC020222 Mahindra Intertrade Limited Designation : Director · CIN of the company: U63040MH1994PTC079098 Mahindra International Limited Designation : director · CIN of the Company: U70100MH1999PTC122738 Sylvan Realty Private limited Designation : director · CIN of the company: U72200KA2000PTC027846 Name of the company: Plexion Technologies (India) Private Limited Designation : director · CIN of the Company: L64200MH1994PLC083996 Automart India Limited Designation : director
Name :	Mr. Christian David Roger De Rivet Dit Rivet De Sabatier
Designation :	Director appointed in casual vacancy
Address :	47 Bis Rue De Billancourt, Boulogne- 92100, France
Date of Birth/Age :	11.07.1949
Date of Appointment :	26.03.2008
DIN No.:	02134719
Name :	Mr. Sudhir Pushkar Rao
Designation :	Director
Address :	E 9-6 Vasant Vihar, New Delhi- 110057, India
Date of Birth/Age :	11.09.1959
Date of Appointment :	03.08.2009
DIN No.:	00399736
Name :	Mr. Rekhiv Supekar
Designation :	Director
Address :	A-503, Hill View Park, Samtanagar, Near Thakur Public School, Thakur Village, Kandivli (East), Mumbai – 400 101, Maharashtra, India
Date of Birth/Age :	11.10.1961
Date of Appointment :	01.05.2010
Name :	Mr. Sundaram Venkatraman
Designation :	Additional Director
Address :	501, Vikas Classic Building 4, Dr. C. Gdwani Marg, Chembur, Mumbai-400074, Maharashtra, India
Date of Birth/Age :	07.05.1952
Date of Appointment :	31.08.2010
Name :	Mr. Marc Nassif
Designation :	Director
Address :	5 Place Du Masnil, Sevin- 78720, St. Forget
Date of Birth/Age :	18.01.1962
Date of Appointment :	03.08.2009
Date of Cessation :	22.07.2008
DIN No.:	01667254
Name :	Mr. Nalin B Mehta
Designation :	Whole-time Director
Address :	1805/06, Beverly Hills, T-36 Shastri Nagar, Andheri (West), Mumbai- 400053, Maharashtra, India
Date of Birth/Age :	08.09.1958
Qualification:	B.Tech, MBA
Experience:	28 Years
Date of Appointment :	22.07.2009
Date of Ceasing:	31.03.2010
DIN No.:	02272736
Last Employment:	General Manager, Marketing, Mahindra and Mahindra Limited
Name :	Mr. Uday Yeshwant Phadke
Designation :	Director
Address :	Flat No.13, Neel Tarang, 208/210, Veer Savarkar Marg, Mahim, Mumbai-400016, Maharashtra
Date of Birth/Age :	19.11.1950
Date of Appointment :	27.04.2006
Date of Ceasing:	30.08.2010
DIN No.:	00030191
Directorship in other Companies:	· CIN of the Company: L51900MH1978PLC020222 Mahindra Intertrade Limited · CIN of the Company: U65921MH1991PTC059642 Name of the Company: Mahindra and Mahindra Financial Services limited Designation : director · CIN of the Company: U65910MH1985PTC036060 Name of the Company: Mahindra Holdings and finance limited Designation : director · CIN of the Company: U55101TN1996PLC036595 Mahindra Holidays and Resorts (India) Limited Designation: director · CIN of the Company: U01409MH2000PLC125781 Mahindra Shubhlabh Services Limited Designation: director · CIN of the Company: U45200MH1999PLC118949 Mahindra Gesco Developers Limited Designation: director · CIN of the Company: U34100GJ1978PLC003127 Mahindra Gujarat Tractor Limited Designation: director

KEY EXECUTIVES

Name :	Ms. Pallavi Prasanna Ogale
Designation :	Company Secretary
Address :	401, Kunj, Gogatewadi, Goregaon (East), Mumbai – 400063, Maharashtra, India
Date of Birth/Age :	11.12.1971
Date of Appointment :	01.11.2007
Name :	Mr. Shashank Raodeo
Designation :	General Manager
Date of Birth/Age :	41 Years
Qualification :	BE- Mechanical, Diploma Course in “Quallity System Mnaagement:
Experience :	20 Years
Date of Appointment :	10.07.2006
Last Employment:	Deputy General Manager- Logistics, Emerson
Name :	Mr. Manish Gupta
Designation :	Deputy General Manager- Logistics and SCM
Date of Birth/Age :	42 Years
Qualification :	BE- Production
Experience :	18 Years
Date of Appointment :	22.06.2006
Last Employment:	Senior Manager- SCM New Holland Tractors
Name :	Mr. Vincent Luc
Designation :	Deputy Financial Controller
Date of Birth/Age :	40 Years
Qualification :	Graduate in Engineering
Experience :	14 Years
Date of Appointment :	01.10.2007
Last Employment:	General Manger project and Investment control, Finance Division, Renault Samsung
Name :	Mr. Gerald Porcario
Designation :	Deputy General Manager- Marketing
Date of Birth/Age :	40 Years
Qualification :	Institute for Political Science, MBA Lyon Management School
Experience :	15 Years
Date of Appointment :	01.09.2007
Last Employment:	Worldwide Brand Manager- Upper Range- Renault S.A.S.
Name :	Mr. Praveen Jain
Designation :	General Manager
Date of Birth/Age :	46 Years
Qualification :	BE Mechanical, ME Industrial Engineering and MGMT
Experience :	25 Years
Date of Appointment :	01.04.2008
Last Employment:	DGM, Quality, Mahindra and Mahindra Limited
Name :	Mr. Jyoti Malhotra
Designation :	Deputy General Manager
Date of Birth/Age :	39 Years
Qualification :	BE Production, MBA Marketing
Experience :	15 Years
Date of Appointment :	01.09.2008
Last Employment:	Regional Head, Maruti Suzuki
Name :	Mr. Sanjay Garg
Designation :	General Manager
Date of Birth/Age :	47 Years
Qualification :	MBA Marketing, BE, PGDBA
Experience :	25 Years
Date of Appointment :	12.01.2007
Last Employment:	Deputy General Manager- After Sales, Hyndai Motors
Name :	Mr. Rekhiv Supekar
Designation :	Chief Financial Officer
Date of Birth/Age :	48 Years
Qualification :	B.com, ACA
Experience :	21 Years
Date of Appointment :	01.01.2009
Last Employment:	General Manager, Finance- M and M FES

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.06.2010

Names of Shareholders	No. of Shares
Mahindra and Mahindra Limited, Mumbai	101624232
Renault s.a.s., France	97638968
Total	199263200

As on 06.08.2010

List of Allottees	No. of Shares Allotted
Renault s.a.s., France	174900000
Total	174900000

As on 30.09.2010

Equity share breakup (percentage of total equity):

Sr.No.	Category	Percentage
1	Foreign Holdings (Foreign Institutional Investor(S), Foreign Companie(S), Foreign Financial Institution(S), Non – Resident Indian(S) Or Overseas Corporate Bodies Or Others.	49.00
2	Bodies Corporate	51.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Automotive Vehicles.

Products:

Product Description	ITC Code
Passenger Vehicles	87032299

Terms :

Selling :

L/C, Cash, Credit (30 days, 60 days, 90 days)

Purchasing :

Cash, Credit (30 days, 60 days, 90 days)

GENERAL INFORMATION

Customers :

• End Users
• OEM’s

No. of Employees :

200 (Approximately)

Bankers :

· The Hong Kong and Shanghai Banking Corporation Limited

Plot No.139- 140B, Shiv Building, Sahar Road Junction, Opposite, W.E Highway, Vile Parle (East), Mumbai- 400057, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	Rs. In Millions 31.03.2009
Foreign Currency Loans From Banks	2344.707	2344.707
Other Loans From Banks	750.000	750.000
Total	3094.707	3094.707

Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Overdrawn Book Balance in current accounts	--	3.829
Short Term loans from others	--	190.000
Total	--	193.829

Banking Relations :

--

Auditors :

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

12, Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai- 400018, Maharashtra, India

Tel. No.:

91-22-66679000

Fax No. :

91-22-66679100

Joint Venture :

Renault S.A.S France

Holding Company :

Mahindra and Mahindra Limited

CIN: L65990MH1945PLC004558

Fellow Subsidiaries :

· Bristlecone India Limited

· Mahindra First Choice Wheels Limited

· Mahindra Navistar Automotives Limited

· Mahindra Intertrade Limited

· Mahindra Ugine Steel Company Limited

· NBS International Limited

· Mahindra Logistic Limited

· Mahindra Engineering Services Limited

· Mahindra and Mahindra Financial Services limited

· Mahindra First Choice Services Limited

· Mahindra Holiday and Resort Limited

· Mahindra Logisoft Business Solution Limited

· Tech Machindra Limited

· Mahindra Vehicles Manufacturers Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
340,000,000	Equity Shares	Rs.10/- each	Rs. 3400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
199,263,200	Equity Shares	Rs.10/- each	Rs. 1992.632 Millions

Note – of the above, 101,624,232 equity shares of Rs. 10 each fully paid up are held by Mahindra and Mahindra Limited, the Holding Company

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		1992.632	1992.632	1992.632
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1024.830	1024.830	1024.830
4] (Accumulated Losses)		(6621.466)	(5806.162)	(904.021)
NETWORTH		(3604.004)	(2788.700)	2113.441
LOAN FUNDS
1] Secured Loans		3094.707	3094.707	3094.707
2] Unsecured Loans		0.000	193.829	94.184
TOTAL BORROWING		3094.707	3288.536	3188.891
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		(509.297)	499.836	5302.332
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3469.311	3294.356	3695.367
Capital work-in-progress		0.881	133.765	112.797
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	725.927	1085.872	2329.134
	Sundry Debtors	103.335	392.264	1133.351
	Cash & Bank Balances	569.750	224.463	570.505
	Other Current Assets	0.347	0.065	0.332
	Loans & Advances	326.455	428.661	698.694
Total Current Assets		1725.814	2131.325	4732.016
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2362.496	1757.171	3099.962
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	3342.807	3302.439	137.886
Total Current Liabilities		5705.303	5059.610	3237.848
Net Current Assets		(3979.489)	(2928.285)	1494.168
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		(509.297)	499.836	5302.332

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2877.350	5911.439	9849.525
		Other Income	205.816	180.006	127.807
		TOTAL (A)	3083.166	6091.445	9977.332
Less	EXPENSES
		Raw Material and Finished Products	2754.946	5646.342	8243.310
		Excise Duty	5.479	(64.505)	69.771
		Personnel	98.773	108.134	144.114
		Other Expenses	572.463	1319.529	1196.365
		Cost of Manufacturer Products Capitalization	(0.530)	(9.278)	0.000
		Exceptional Items	63.530	3112.462	0.000
SSE		TOTAL (B)	3494.661	10112.684	9653.560
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(411.495)	(4021.239)	323.772
Less	FINANCIAL EXPENSES (D)		381.241	376.991	267.668
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(792.736)	(4398.230)	56.104
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.568	500.811	479.805
	PROFIT BEFORE TAX (E-F) (G)		(815.304)	(4899.041)	(423.701)
Less	TAX (I)		0.000	3.100	2.678
	PROFIT AFTER TAX (G-I) (J)		(815.304)	(4902.141)	(426.379)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(5806.162)	(904.021)	(477.642)
	BALANCE CARRIED TO THE B/S		(6621.466)	(5806.162)	(904.021)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	354.692	507.271	4.717
		Other Earnings	16.640	13.115	38.106
	TOTAL EARNINGS		371.332	520.386	42.823
	IMPORTS
		Raw Materials	935.181	1624.184	5020.474
		Capital Goods	0.000	72.091	63.448
	TOTAL IMPORTS		935.181	1696.275	5083.922
	Earnings Per Share (Rs.)		(4.09)	(24.60)	(2.29)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(26.44)	(80.48)	(4.27)
Net Profit Margin (PBT/Sales)	(%)	(28.33)	(82.97)	(4.30)
Return on Total Assets (PBT/Total Assets}	(%)	(15.69)	(90.29)	(5.03)
Return on Investment (ROI) (PBT/Networth)		0.22	(1.76)	(0.20)
Debt Equity Ratio (Total Liability/Networth)		2.44	( 1.81)	1.53
Current Ratio (Current Asset/Current Liability)		0.30	0.42	1.46

LOCAL AGENCY FURTHER INFORMATION

Performance Review

During the year, the Company achieved total sales of 6,332 vehicles (Domestic sales of 5,332 vehicles and Export Sales of 1,000 vehicles). The total annual Sales declined by 58% and the domestic market share dropped to 1.9% during the year as compared to 5.5% in the corresponding previous year.

During the year, the Company took various market initiatives to overcome competition and gain volumes, such as refresh variant of Logan in August, 2009, launch of Special Edition of Logan Play in September, 2009 and launch of Special Edition of Logan Tourer co-branded with VIP Industries Limited. The Company continued its focus on fleet operators during the year.

Status of Joint Venture

The shareholders of the Company have been in discussions to arrive at a long term solution to the Company's continuing losses. Subsequent to the year end, they have reached an in principle Agreement whereby Mahindra and Mahindra Limited (MandM) shall purchase Renault s.a.s's entire shareholding in the Company. In this connection, a Framework Agreement has been signed on 16th April, 2010 by both the shareholders of the Company. All definitive agreements to execute this settlement are expected to be signed in coming months.

Renault s.a.s would continue to support the Company and the Logan through a Licence Agreement and supply of key components.

Form 8

This form is for	Creation of charge
Corporate identity number of the company	U34100MH2005PTC153702
Name of the company	MAHINDRA RENAULT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Gateway Building, Apollo Bunder, Mumbai-400001, Maharashtra, India
Type of charge	Book Debts Floating Charge Other
Particular of charge holder	· The Hong Kong and Shanghai Banking Corporation Limited Plot No.139- 140B, Shiv Building, Sahar Road Junction, Opposite, W.E Highway, Vile Parle (East), Mumbai- 400057, Maharashtra, India E-Mail : satishsrivastava@hsbc.co.in
Nature of description of the instrument creating or modifying the charge	Hypothecation agreement dated September 01, 2008 signed between the company and The Hong Kong and Shanghai Banking Corporation Limited (HSBC), in its capacity as a security trustee, on behalf of and for the benefit of the lenders.
Date of instrument Creating the charge	01.09.2008
Amount secured by the charge	Rs.2500.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the agreed terms and conditions as set out in the sanction letter issued to the company by the lenders (as defined in the security Trustee Agreement dated 01.09.2008), as modified from time to time. Terms of Repayment As per the agreed terms and conditions as set out in the sanction letter issued to the company by the lenders (as defined in the security Trustee Agreement dated 01.09.2008), as modified from time to time. Margin As per the agreed terms and conditions as set out in the sanction letter issued to the company by the lenders (as defined in the security Trustee Agreement dated 01.09.2008), as modified from time to time. Extent and Operation of the charge First pari-passu charge in favour of HSBC, acting as security Trustee for the Lenders, by way of hypothecation of the company’s current assets, both present and future such as raw Materials, stock, book-debts, receivable and the insurance policies/ contracts related thereto as more described in the deed of hypothecation to secure the moneys advanced and to be advanced by the Lenders from time to time up to an aggregate amount of Rs.2500.000 millions
Short particulars of the property charged	First pari-passu charge in favour of HSBC, acting as security Trustee for the Lenders, by way of hypothecation of the company’s current assets, both present and future such as raw Materials, stock, book-debts, receivable and the insurance policies/ contracts related thereto as more described in the deed of hypothecation to secure the moneys advanced and to be advanced by the Lenders from time to time up to an aggregate amount of Rs.2500.000 millions

Fixed Assets

• Technical Assistance
• Software
• Plant and Machinery
• Furniture and Fitting
• 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 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.45.18
UK Pound	1	Rs.73.04
Euro	1	Rs.61.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		27

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.