MIRA INFORM REPORT

Report Date :

04.07.2011

IDENTIFICATION DETAILS

Name :	TELCO CONSTRUCTION EQUIPMENT COMPANY LIMITED
Registered Office :	Jubilee Building, 45, Museum Road, Bangalore – 560 025, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	30.12.1998
Com. Reg. No.:	08-024588
Capital Investment / Paid-up Capital :	Rs.1000.000 millions
CIN No.: [Company Identification No.]	U85110KA1998PLC024588
TAN No.: [Tax Deduction & Collection Account No.]	BLRT02428G
PAN No.: [Permanent Account No.]	AAACT9077B
Legal Form :	It is a closely held public limited liability company.
Line of Business :	Manufacturing and Exporter of construction equipments and earth moving equipments.
No. of Employees :	1055 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (78)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 29000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Available information indicates high financial responsibility of the company. Trade relations are reported as fair. Business is active. Payments are reported to be 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	Jubilee Building, 45, Museum Road, Bangalore - 560025, Karnataka, India
Tel. No.:	91-80-25588026/25583345/46/53/ 66953301/02/03
Fax No.:	91-80-25583343/ 66953309
E-Mail :	telcon@telcon.co.in marketing.group@telcon.co.in
Website :	http://www.telcon.co.in
Area :	15000 sq. ft
Location :	Leased
Administrative office:	27^th Floor, Centre I, World Trade Centre, Cuffe Parade, Mumbai - 400005, Maharashtra
Tel. No.:	91-22-22160871
Fax No.:	91-22-22185747
Zonal offices :	Located at : Ahmedabad Aurangabad Bhubaneswar Bilaspur Chandigarh Chennai Cochin Dhanbad Goa Gulbarga Guwahati Hospet Indore Jaipur Jamshedpur Kolhapur Lucknow Nellore Pune Rajkot Salem Udaipur Vijaywada Vizag
Overseas office:	Nitol Motors Limited, Nitol Centre, 71 A, Mohakali Commercial Area, Dhaka, 1212, Bangladesh, India Tel. No. 00880-2-9887074/76 Fax. No. 00880-2-9883121/9887072 E-mail. nita@citechco.net Contact Person - Mr. Mohammad Aytollah / Mr. N. Ramchandran Access Tower, 278 Union Placa, Colombo, Colombo 02, Sri Lanka, India Tel. No. 0094-1-302302 Fax. No. 0094-1-302333/302346 E-mail. ajitten@access.lk/sumal@access.lk Contact Person - Mr. Sumal Perera Kathmandu, 999 999, Nepal, India Tel. No. 00977-1-520320/3/526357 Fax. No. 00977-1-26670 E-mail. paka@mos.com.np Contact Person - Mr. Badri Shreshtha
Factory :	C/O Tata Moters/ Telco Works, Jamshedpur-831010, Bihar, India KIADB, Block No : 2, Belur Industrial Estate, Mummigatti, Dharwad - 580007, Karnataka, India Email: ganapathi.mani@telcon.co.in
Area :	100 acre
Location :	Owned
Branches :	Located at : Bangalore Kolkata Hyderabad Mumbai New Delhi Nagpur

DIRECTORS

As on 12.07.2010 

Name :	Mr. Yoshimi Iwase
Designation :	Non Executive Director
Address :	3251-3, Mitsukaidousuwa-cho, Jousou-city, Lbaraki, Japan
Date of Birth/Age :	12.03.1951
Date of Appointment :	30.03.2010
Name :	Mr. Ranaveer Sinha
Designation :	Managing Director
Address :	G5, Golmuri Road, Nildih, PO Golmuri, Jamshedpur – 831003, India
Date of Birth/Age :	09.07.1954
Qualification :	B.E., PGDBM
Date of Appointment :	01.01.2003
Name :	Mr. Kamalesh Chandra Dewan Wazirchand Mehra
Designation :	Non Executive Director
Address :	Flat # 11, Volkart House, 63 Westfield Lane, Bhulabai Desai Road, Mumbai – 400021, Maharashtra, India
Date of Birth/Age :	20.09.1939
Date of Appointment :	29.09.1999
Name :	Mr. Touchirou Mizutani
Designation :	Non Executive Director
Address :	1082-36, Tagu-cho, Ushiku-shi, Lbaraki, Japan
Date of Birth/Age :	29.08.1952
Date of Appointment :	30.03.2010
Name :	Mr. Katsumi Kimura
Designation :	Non Executive Director
Address :	Room No. 101, Golmuri club, Jamshedpur – 831003
Date of Birth/Age :	30.08.1948
Date of Appointment :	18.10.2006
Name :	Mr. Shoji Lino
Designation :	Nominee Director
Address :	4-1-33 Shibasakidai, Abiko-Shi, Chiba 2701176
Date of Birth/Age :	11.07.1957
Date of Appointment :	01.07.2009
Nominee Company :	Hitachi Construction Machinery Company Limited
Name :	Mr. Prakash Manjanath Telang
Designation :	Non Executive Director
Address :	Flat # D – 211 Paradise Towers, Plot # 10 Baner Road, Pune – 411045, Maharashtra, India
Date of Birth/Age :	21.06.1947
Date of Appointment :	30.06.2006
Name :	Mr. Hiroaki Isshiki
Designation :	Alternate Director
Address :	3-13-8 Izumi-Honcho Komae City, Tokyo – 2010003
Date of Birth/Age :	23.04.1958
Date of Appointment :	24.03.2008
Name :	Mr. Ravi Kant
Designation :	Director
Address :	A-3, Pallonji Mansion, 43 Cuffe parade, Near President Hotel, Colaba, Mumbai – 400 005
Date of Birth/Age :	01.06.1944
Date of Appointment :	21.10.2008
Name :	Mr. Hinonobu Shibata
Designation :	Director
Address :	1-26-3, Amakawa, Tsuchiura-shi, Ibaraki, Japan
Date of Birth/Age :	17.01.1959
Date of Appointment :	01.07.2009

KEY EXECUTIVES

Name :	Mr. Azhagesan Ayyamperumal
Designation :	Company Secretary
Address :	Tulip 002, Rakesh Fantasy garden 118, Kasturinagar, 2^nd Main Road, OMBR Layout, Banaswadi, Bangalore – 560 043
Date of Birth :	27.09.1963
Date of Appointment :	09.01.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 12.07.2010

Names of Shareholders	No. of Shares
Tata Motors Limited (India)	39749994
Tata Motors Limited jointly with Mr. Praveen P. Kadie	1
Tata Motors Limited jointly with Mr. Hoshang K. Sethna	1
Hitachi Construction Machinery Company Limited (India)	60000000
Sheba Properties Limited (India)	250000
Tata Motors Limited jointly with Mr. Ranaveer Sinha	1
Tata Motors Limited jointly with Mr. G. Mani	1
Tata Motors Limited jointly with Mr. Manav Kohli	1
Tata Motors Limited jointly with Mr. N. Venkatakrishnan	1
Total	100000000

AS ON 12.07.2010

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)	60.00
Bodies Corporate	40.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Exporter of construction equipments and earth moving equipments.

Products :

Product Description	Item Code No.
Excavators, Loaders, Mechanical Shovels and parts thereof	8429

• Hydraulic Excavators
• Crawler Cranes
• Wheel Loader
• Backhoe Loader
• Agency Products

GENERAL INFORMATION

Suppliers :

As on 2009

• Hitachi Construction Machinery Company, Japan
• Ital Tractors, Italy
• Kirloskar Cummins Limited/ Cummins Engines, India
• Tata Motors Limited, India
• Wipro Fluid Power, Peenya, Bangalore

Customers :

As on 2009

• Central Public Works Department, India
• State Public Works Departments, India
• Tata Group Companies, India
• North Zone Trader, Srinagar
• Pathankot Excavator, Pathankot
• Super Mover Agencies

No. of Employees :

1055 (Approximately)

Bankers :

• State Bank of India, Corporate Accounts Group Branch, Express Towers, Nariman Point, Mumbai – 400021, Maharashtra, India
• Standard Chartered Bank, 26-27, Raheja Towers, M G Road, Bangalore – 560001, Karnataka, India
• Bank of Baroda, Bangalore, Karnataka, India
• Corporation Bank, Bangalore, Karnataka , India
• HDFC Bank Limited, Kasturba Road, Bangalore – 560001, Karnataka, India
• DBS Bank Limited, Salarpuria Windsor, No.3, Ulsoor Road, Bnagalore – 560 042, Karnataka, India
• The Bank of Tokyo Mitsubishi UFJ Limited, Mumbai Branch, Hoechst House, 15 Floor, 193, Vinay K Shah Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India
• Citibank N.A., UB City, Canberra Block, #24, Vitthal Mallya Road, Bangalore – 560001, Karnataka, India

Facilities :

Secured Loans	31.03.2010 (Rs. in Millions)	31.03.209 (Rs. in Millions)
Term loans from Banks	1000.000	0.000
Foreign Currency Loan from Banks	324.800	0.000
Working Capital Loans and Cash Credit Account with Banks	1682.300	4007.800
Total	3007.100	4007.800
Unsecured Loans	31.03.2010 (Rs. in Millions)	31.03.209 (Rs. in Millions)
Commercial Paper	1088.100	585.500
Working Capital Rupee Loan	0.000	200.000
Total	1088.100	785.500

Notes :

Out of the above, buyer's credit facilities amounting to Rs. 1182.300 millions (Previous year Rs 3374.200 millions) and Working capital loan from Bank's for Rs. 500.000 millions are secured by hypothecation of inventories and sundry debtors. Term Loan of Rs. 1000.000 millions and Foreign Currency loan of Rs. 324.800 millions are secured by hypothecation of Fixed Assets.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address:	Deloitte Haskings and Sells, Deloitte Centre, Anchorage II, 100/2 Richmond Road, Bangalore – 560 025, Karnataka, India
Pan No :	AAAFS7376P
Tel No :	91-80-66276000
Fax No :	91-80-66276011
Collaborators:	John Deere Industrial Equipment Company, USA Euclid Hitachi, USA
Associates:	Tata Associated Cement Companies Limited Hitachi Construction Company Limited Tata Power Company Limited Andhra Valley Power Supply Company Limited The Tata Hydro Electric Power Company limited Tata Consultancy Services Tata BP Solar Limited Tata Sons Limited Tata Industries Limited Tata Iron and Steel Company Limited Tata Davy Limited Tata Share Registry Limited Tata Liebert Limited Tata Tea Limited Tata Infotech Limited Tata Finance Limited Tata Exports Limited Tata Pharma Limited
Subsidiaries:	Tal Manufacturing Solutions Limited Tata Technologies Limited H. V. Transmission Limited H. V. Axles limited Serviplem S.A. Comoplesa lebrero S.A. Inner Mongolia North Baryval Special Vehicle Engineering Corporation Limited. Baryval Assistencia Technicia S. L.
Holding Company:	Hitachi Construction Machinery Company Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 millions

 Note :

Of the above 60000000 Ordinary Shares of Rs.10 each held by Hitachi Construction Machinery 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		1000.000	1000.000	1000.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6250.100	5679.800	5417.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7250.100	6679.800	6417.800
LOAN FUNDS
1] Secured Loans		3007.100	4007.800	0.000
2] Unsecured Loans		1088.100	785.500	0.000
TOTAL BORROWING		4095.200	4793.300	0.000
DEFERRED TAX LIABILITIES		249.500	125.200	88.600
TOTAL		11594.800	11598.300	6506.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5131.800	2747.500	2282.900
Capital work-in-progress		1832.100	2526.500	910.200
INVESTMENT		2596.100	2581.700	1570.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5179.500	7052.800	4229.100
	Sundry Debtors	2184.800	2469.700	1984.100
	Cash & Bank Balances	423.300	2.100	792.300
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6044.700	5120.400	4079.300
Total Current Assets		13832.300	14645.000	11084.800
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3966.000	3620.200	2775.400
	Other Current Liabilities	2730.500	3157.500	2516.000
	Provisions	5102.600	4148.200	4050.600
Total Current Liabilities		11799.100	10925.900	9342.000
Net Current Assets		2033.200	3719.100	1742.800
MISCELLANEOUS EXPENSES		1.600	23.500	0.000
TOTAL		11594.800	11598.300	6506.400

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	19515.300	19366.900	24109.100
		Other Income	459.200	129.000	169.700
		TOTAL (A)	19974.500	19495.900	24278.800
Less	EXPENSES
		Manufacturing and Other Expenses	17821.700	17605.400	19150.600
		TOTAL (B)	17821.700	17605.400	19150.600
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2152.800	1890.500	5128.200
Less	FINANCIAL EXPENSES (D)		315.600	286.400	3.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1837.200	1604.100	5124.400
Less/ Add	DEPRECIATION/ AMORTISATION (F)		263.400	241.100	215.000
	PROFIT BEFORE TAX (E-F) (G)		1573.800	1363.000	4909.400
Less	TAX (I)		537.100	516.000	1673.200
	PROFIT AFTER TAX (G-I) (J)		1036.700	847.000	3236.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4057.400	3880.800	1904.600
Less	APPROPRIATIONS
		Transfer to General Reserve	104.500	85.400	324.000
		Interim Dividend	0.000	500.000	500.000
		Tax on Interim Dividend	0.000	85.000	85.000
		Proposed Dividend	400.000	0.000	300.000
		Tax on Proposed Dividend	66.400	0.000	51.000
	BALANCE CARRIED TO THE B/S		4523.200	4057.400	3880.800
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	106.900	321.100	575.100
		Commission Earnings	17.000	22.500	14.800
		Other Earnings	5.100	1.500	0.000
	TOTAL EARNINGS		129.000	345.100	589.900
	IMPORTS
		Raw Materials and Components	3647.900	5317.800	4355.100
		Spares	1121.800	953.200	642.300
		Capital Goods	127.400	195.900	201.200
		Machines	902.300	3063.100	2259.000
	TOTAL IMPORTS		5799.400	9530.000	7457.600
	Earnings Per Share (Rs.)		10.36	8.47	32.36

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.19	4.34	13.33
Net Profit Margin (PBT/Sales)	(%)	8.06	7.04	20.36
Return on Total Assets (PBT/Total Assets}	(%)	8.30	7.84	43.19
Return on Investment (ROI) (PBT/Networth)		0.22	0.20	0.76
Debt Equity Ratio (Total Liability/Networth)		2.19	2.35	1.46
Current Ratio (Current Asset/Current Liability)		1.17	1.34	1.19

LOCAL AGENCY FURTHER INFORMATION

INDUSTRY OVERVIEW

After the major upheaval experienced in 2008-09, an atmosphere of uncertainty prevailed during the year 2009-10. Forecasts for the year 09-10 varied widely and moreover were being constantly revised in view of this uncertainty. However, the Indian economy showed resilience in this environment after the lows of the last two quarters of 08-09. Initial estimates showed that the economic growth was at over 7%, with steady growth in industrial output and the Construction Sector as well. Growth in the Mining and Quarrying Sectors were also robust. During the year, the uncertainty in the flow of credit to the Construction Equipment (CE) Industry eased up, though certain controls in lending still continued. The stimulus package unveiled by the government to restore confidence in the economy helped. In terms of investment, initiatives under Bharat Nirman including rural roads, housing, and water supply continued to drive demand for CE industry, while the Road Sector did not show a promising growth as expected. Mining output, especially coal and iron ore production witnessed a growth, and this boosted the demand for large class Excavators and Dumpers.

The trend of intensified competition continued in the form of aggressive pricing of strategies adopted by new entrants. While world markets had slowed down dramatically, India was one of few markets showing a smart recovery and growth. New players, especially from China and Korea, tried to cash-in the situation by trading at aggressive prices, while some of them had also commenced production in India. This resulted in some of the new entrants taking the lead over a few existing players and penetrating the market. During the year, this situation had extended to the crane market too, which was further impacted by import of used machines.

OPERATING RESULTS AND PROFITS

Despite the intense competition and the after effects of the slowdown, the Company had performed fairly well during the year and sold 5405 machines (5194 machines in 2008-09). During the year, the Company retained its market leadership in the excavator segment, and introduced a variety of improvements in its operations, whereby it was able to deliver a growth of 22% in its profitability.

OPERATIONS

During the year, all the plants had focused on debottlenecking the capacities in line with the Company’s strategic plans, and delivering on quality benchmarks. In the first year of its operations, Kharagpur plant rolled out 195 units of Excavators and Dumpers. In addition to the regular production, prototypes for certain new models were also rolled out, namely, ZX75 Excavator, X3 Compactor and TM06 Concrete Mixer.

Introduction of new models and improved versions helped the Company widen the range of its products catering to a variety of applications. Also, this enabled the Company to address and capture opportunities in demand, especially in the Mining Sector, in the year 2009-10. This partially helped in building up the volumes, while the market for smaller machines was still under pressure in the aftermath of the recession. Despite this, the Company retained its dominance in small and mid-sized excavators. It continued its focus on imported products, which helped it in seeding the market with technologically superior products to facilitate manufacturing them in-house subsequently. Revenue from spare parts recorded a growth of 11%, over last year and income from services increased by 73% on the strength of new maintenance contracts especially for larger equipment.

Form 8

Corporate identity number of the company	U85110KA1998PLC024588
Name of the company	TELCO CONSTRUCTION EQUIPMENT COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	Jubilee Building, 45, Museum Road, Bangalore - 560025, Karnataka, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Citibank N.A., UB City, Canberra Block, #24, Vitthal Mallya Road, Bangalore – 560001, Karnataka, India
Nature of instrument creating charge	Deed of Hypothecation executed in favour of Citibank dated 1st May'11 for sanction of Rs.48Cr term loan vide agreement dated 23rd Sep'10
Date of instrument Creating the charge	01.05.2011
Amount secured by the charge	Rs.480.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : JPY Libor plus 225 bps swapped in fixed USD interest. Terms of repayment : In a single trance at the expiry of 24 months from the date of drawdown Extent and operation of the charge : Deed of hypothecation in favour of the Bank creating first pari-passu charge on all the plant and machinery located at the Kharagpur plant of the Company
Short Particulars of the property charged	All present and future plant and machinery wherever at the Company's Kharagpur Plant at Village- Rupnarayanpur, Post Office- Jakpur, Kharagpur - 721301, District - Paschim Midnapur, West Bengal as security by way of first pari-passu charge

FIXED ASSETS:

• Building
• Leasehold Land
• Leasehold Improvement
• Plant
• Machinery
• Equipment
• Water systems and sanitation
• Furniture,
• Fixtures
• Office appliances
• Vehicles
• Transport

PRESS RELEASE:

YET ANOTHER TATA ACQUISITION IN EUROPE

Telco Construction Equipment Company Limited (TELCON) signs deal to acquire controlling stake in SERVIPLEM S.A, an European Construction Equipment Company based in Zaragoza, Spain

SERVIPLEM ranks amongst global top six in transit mixers, dry bulk tankers and pumps. Helps TELCON to enter the concrete value chain.

Acquisition provides TELCON opportunity on full range service and play in two important growth economies – India and China.

Telco Construction Equipment Company Limited (TELCON), a leader in the Construction Equipment Sector in India, signed an agreement with the existing shareholders of SERVIPLEM S.A, Spain for acquisition of their 79% stake in the Company. In the spirit of partnership, the existing owners will continue to be associated with the venture and own the remaining 21%.

Speaking on the occasion of signing the agreement, Mr Ranaveer Sinha, Managing Director of Telcon said that this acquisition is of great strategic importance and will add impetus to its plan to be a US$ 2 Billion company by 2012. Serviplem, which focuses on manufacturing and sale of transit mixers, dry bulk tanks and pumps. The technology will help Telcon to enter the concrete value chain with a number of offerings.

Serviplem also has a presence in China through a Joint Venture which can also be leveraged. With the acquisition, Telcon can drive growth in two important growth economies viz. India and China. Mr Sinha said that Serviplem and Telcon will work together to identify opportunities and leverage their presence in the global market.

With this acquisition, the TATA GROUP will have a significant presence in the Aragon Region in Spain as it is already present in the region through its partnership with Hispano Carrocera S.A., a Bus Body Building company, and its recently opened Branch Office at Zaragoza.

Speaking on Telcon’s future growth plans, Mr Sinha mentioned that the Company’s growth plans are in line with expectations and that he is constantly on the look out for strengthening its product portfolio through technology transfers, partnerships and other acquisitions.

ABOUT TELCON

Telcon is a subsidiary of Tata Motors and focuses on the Construction Equipment Sector of the $60 Bn Tata Group of India. It ranks 47th in the world on turnover and plans to be in the top 25 by 2012 by positioning itself by full range product and service offerings to its customers. Telcon is a joint venture promoted by Tata Motors Limited, India (60%) and Hitachi Construction Machinery Company Limited, Japan (40%). Hitachi is amongst the top 5 Construction Equipments Companies in the World.

ABOUT SERVIPLEM S.A

Serviplem is a Spanish company, with headquarters in Zaragoza, leader in Spain, with its Baryval brand in the manufacturing, marketing and servicing of transit mixers having a market share of 60%. Their activities include the manufacturing of aluminium tanks for dry bulk transport and commercial presence with several other products in the cement and concrete markets. Serviplem exports 35% of its turnover to the five continents and, since 2001, is active in China through its majority stake in a manufacturing company set up with an important local partner.

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. 44.58
UK Pound	1	Rs. 71.75
Euro	1	Rs. 64.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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		78

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.