MIRA INFORM REPORT

Report Date :

30.07.2011

IDENTIFICATION DETAILS

Name :	DIAGEO INDIA PRIVATE LIMITED
Formerly Known As :	DIAGEO INDIA LIMITED (W.E.F. 11.02.2005) UDV INDIA LIMITED (W.E.F. 18.01.2000) INTERNATIONAL DISTILLER (INDIA) PRIVATE LIMITED
Registered Office :	4^th Floor, Nicholas Piramal Tower, Peninusula Corporate Park, Ganpatrao Kadam Marg, Mumbai – 400 013, Maharashtra
Country :	India
Financials (as on) :	30.06.2010
Date of Incorporation :	08.10.1993
Com. Reg. No.:	11 – 80795
Capital Investment/ Paid-up Capital:	Rs. 910.356 millions
CIN No.: [Company Identification No.]	U99999MH1993PTC080795
TAN No.: [Tax Deduction & Collection Account No.]	MUMU03508B
PAN No.: [Permanent Account No.]	AAACI3378L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Marketing of Alcoholic Beverages
No. of Employees:	Not Divulged by the management

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 1600000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

MANAGEMENT NON CO-OPERATIVE

LOCATIONS

Registered Office :	4^th Floor, Nicholas Piramal Tower, Peninusula Corporate Park, Ganpatrao Kadam Marg, Mumbai – 400 013, Maharashtra, India
Tel. No.:	91-22-67542525
Fax No.:	91-22-24952671
E-Mail :	chetan.s.solse@diageo.com jagdish.pathak@standardchartered.com
Website :	http://www.diageo.com

DIRECTORS

As on 30.12.2010

Name :	Mr. Andrew Gordon James Robertson
Designation :	Director
Address :	18 Coronation Road, West, Singapore 049145
Date of Birth/Age :	31.03.1964
Date of Appointment :	22.11.2008
DIN No.:	02421044
Name :	Mr. Richard Albon Burn
Designation :	Director
Address :	25 Malcolm Road, Singapore 308263
Date of Birth/Age :	07.11.1958
Date of Appointment :	30.12.2008
DIN No.:	02425768
Name :	Mr. Roland Abella
Designation :	Managing Director
Address :	Flat No. 1601/1602, ‘A’ Wing, Raheja Atlantis, Ganpatrao Kadam Marg, Lower Parel, Mumbai-400013, Maharashtra, India
Date of Birth/Age :	11.02.1968
Qualification:	MBA, MS (Economic Marketing)
Experience:	42 Years
Date of Appointment :	01.04.2009
DIN No.:	02579990
Last Employment:	Regional Director (MENA) Diageo Lebanon S.A.L.
Name :	Mr. Michael Flynn
Designation :	Director Finance
Date of Birth/Age :	53 Years
Qualification :	B Sc (Hons.) Accounting and Financial Management (CIMA)
Experience :	31 Years
Date of Appointment :	16.06.2008
Last Employment:	Finance Director

KEY EXECUTIVES

Name :	Mr. Chetan Solse
Designation :	Company Secretary
Address :	C/403, Bhoomi Classic, Opp. Subkuch Super Market, Link Road, Malad (West), Mumbai – 400 064, Maharashtra, India
Date of Birth/Age :	20.10.1975
Qualification:	C.S. LLB
Experience:	10 Years
Date of Appointment :	01.04.2004
PAN No.:	AVLPS1702R
Last Employment:	Edwards Lifesciences (India) Private Limited
Name :	Mr. Jayesh Mayekar
Designation :	Finance System Manager
Name :	Mr. Mehul Shah
Designation :	Finance Controller- Supply
Name :	Mr. Lalit Agarwal
Designation :	Finance Controller
Name :	Mr. Prakash Shadija
Designation :	FP and R Manager, India
Name :	Mr. Mohit Handa
Designation :	Head- Treasury and Taxation, India
Name :	Mr. Michelle Dsouza
Designation :	Head of Communication, India
Name :	Mr. Pradeep Kumar Modwil
Designation :	Brand Assurance Manager, India
Name :	Mr. Ravindra Naik
Designation :	Reward Manager, India
Name :	Mrs. Namrata Mathur
Designation :	HR Director – India
Name :	Mr. Rajendra Rao
Designation :	Heas of IS Service Delivery, India
Name :	Mr. Santosh Kanekar
Designation :	Marketing Director, India
Name :	Mr. Nitesh Ghhapru
Designation :	Innovation Manager, India
Name :	Mrs. Kaveri Khullar
Designation :	Marketing Manager- Reserve
Name :	Mr. Malay R Diskshit
Designation :	Marketing Manager Portfoilo Scotch
Name :	Mr. Bhavesh Somaya
Designation :	Marketing Manager CP and R
Name :	Mr. Rajesh Joshi
Designation :	Marketing Manager Seeds and Trade Business
Name :	Mr. Avinash Tripathi
Designation :	Marketing Manager – JWE Portfolio
Name :	Mr. Nakul Pathak
Designation :	Marketing Manager – SMV
Name :	Mr. Vinayak Vaidya
Designation :	Demand Procurement Manager
Name :	Mr. Arun Aditya Singla
Designation :	Financial Controller- JV Accounts
Name :	Mr. Manoj Kaul
Designation :	Head- Defense Business (CSd)
Name :	Mr. Abhishek Patwa
Designation :	Business Planning Manager
Name :	Mr. Sanjay David
Designation :	Key Executive
Name :	Mr. Vibhuti Channa
Designation :	National Key Accounts Head
Name :	Mr. Sandeep Potdar
Designation :	Head of Commercial Finance, India
Name :	Mrs. Purvi Sandhya
Designation :	Corporate Government Manager
Name :	Mr. Devashish Dasgupta
Designation :	Corporate Relations Director, India and South Africa
Name :	Mr. Abhishek Kumar Asati
Designation :	Brand Manager- VAT 69
Name :	Mr. Adeep Gupta
Designation :	Assistant General Manager- Travel Retail
Name :	Mr. Anirban Ghosh
Designation :	Regional Business Manager- West 2
Name :	Mr. Chandan Polekar
Designation :	Customer Marketing Activation Manager – West
Name :	Mr. Abhimanyu Dutta
Designation :	Zonal Sales Manager- West Bengal
Name :	Mr. Rajat Lakhani
Designation :	Regional Business Manager – West 1
Name :	Mr. Saurabh Prasad
Designation :	Regional Business Manager- North
Name :	Mr. Tushar Khandelwal
Designation :	Regional Business Manager- East
Name :	Mr. Mimi Das
Designation :	Customer Marketing Manager- Scotches
Name :	Mr. Rohan Patnaik
Designation :	Regional Business Manager- South
Name :	Mr. Kiran Kumar Nithyanand
Designation :	Head- Sales Operations
Name :	Mr. Shubhranshu Singh
Designation :	Head Customer Marketing and Key Accounts
Name :	Mr. Amit Lamba
Designation :	Category Head – Reserve Brands
Name :	Mr. Vineet Wadhwa
Designation :	Customer Marketing Activation Manager- North
Name :	Mr. Raju Ingale
Designation :	Manufacturing – Head
Name :	Mr. V Gopalkrishnan
Designation :	Head of Technical – India
Name :	Mr. Rajkumar Choudhary
Designation :	AGM Sales- Defense Business
Name :	Mr. Neeraj Sharma
Designation :	Direct Sales, North Central and East

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.12.2010

Names of Shareholders	No. of Shares
Selviac Nederland BV, The Netherlands	9103549
Diageo Investment Holdings BV, The Netherlands	6
Total	9103555

Equity Share breakup (percentage of total equity)

As on (31.12.2010)

Category	Percentage
Foreign Holding (Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas corporate bodies or others)	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Alcoholic Beverages

Products :

ITC Code	Product Description
220830	Whisky
220860	Vodka
220850	Gin

GENERAL INFORMATION

No. of Employees :

Not Divulged by the management

Bankers :

• Citi Bank Limited, Bandramkurla Complex, Bandra, Mumbai – 400 051, Maharashtra, India
• Standard Chartered Bank, 90, Mahatma Gandhi Road, Fort, Mumbai – 400 001, Maharashtra, India
• The Hong Kong and Shanghai Banking Corporation Limited, 52/60, M G Road, Fort, Mumbai – 400001, Maharashtra, India

Facilities :

Secured Loans

(Rs. In Millions)

Particulars	30.06.2010	30.06.2009
From Banks
Cash Credit account	76.741	52.251
Working capital demand loan	380.000	545.000
Finance Lease Obligation (Secured against the underlying assets)	9.750	0.000
Total	466.491	597.251

The above facilities are secured against pari-passu hypothecation charge on stocks, book debts and certain advances. Diageo Holdings Nederlnds BV, an affiliate, has provided a support letter for the above credit facilities.

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountant
Address :	KPMG House, Kamala Mills Compound, 448, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India
Holding Company :	v Selviac Nederlands BV, The Netherlands
Ultimate Holding Company :	v Diageo Plc
Associates/Subsidiaries :	v Diageo Scotland Limited v Diageo Brand BV v Diageo North America v Diageo Holdings Netherlands B.V v Diageo Great Britain Limited v Diageo Singapore Private Limited v Diageo Australia v Diageo Moet Honnessy (Thailand) Limited v Diageo Radico Distillers Private Limited v Diageo Lebanon S.A.L v Diageo Ireland v Diageo Singapore Supply Limited

CAPITAL STRUCTURE

AS ON (30.06.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.100/- Each	Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9103555	Equity Shares	Rs.100/- Each	Rs. 910.356 millions

NOTE:

Of the above, 9,103,549 equity shares are held by Selviac Nederlands BV, the holding company.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2010	30.06.2009	30.06.2008
SHAREHOLDERS FUNDS
1] Share Capital		910.356	910.355	910.355
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(502.989]	(568.824)	(435.169)
NETWORTH		407.367	341.531	475.186
LOAN FUNDS
1] Secured Loans		466.491	597.251	461.425
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		466.491	597.251	461.425
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		873.858	938.782	936.611
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		74.422	79.131	104.013
Capital work-in-progress		66.349	5.047	1.626
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	209.356	126.654	165.971
	Sundry Debtors	782.375	661.964	596.889
	Cash & Bank Balances	34.000	107.459	82.836
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	620.252	495.036	452.320
Total Current Assets		1645.983	1391.113	1298.016
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	369.291	231.277	141.556
	Other Current Liabilities	496.010	256.366	255.942
	Provisions	47.595	48.866	69.546
Total Current Liabilities		912.896	536.509	467.044
Net Current Assets		733.087	854.604	830.972
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		873.858	938.782	936.611

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2010	30.06.2009	30.06.2008
	SALES
		Sales and Income from bottling arrangement with third parties	2115.000	2253.739
		Service Income	103.884	232.861
		Brand Contribution	233.432	0.000	NA
		Other Income	19.759	51.189
		TOTAL (A)	2472.075	2537.789	NA
Less	EXPENSES
		Material Consumed	484.734	595.202
		Cost of Goods Sold for Traded Goods	118.041	0.000
		Personnel Costs	458.916	366.421
		Selling, General and Administrative Expenses	1261.873	1557.588	NA
		Assets Impairment Provision	3.863	0.000
		Increase/ Decrease in stock	[0.651	31.865
		TOTAL (B)	2326.776	2551.076	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		145.299	[13.287]
Less	FINANCIAL EXPENSES (D)		37.605	69.951
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		107.694	[83.238]	90.650
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.239	27.286	28.930
	PROFIT BEFORE TAX (E-F) (G)		86.455	[110.524]	61.720
Less	TAX (H)		20.620	[23.131]	38.030
	PROFIT AFTER TAX (G-H) (I)		65.835	[133.655]	23.690
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		[568.824]	[435.169]	[458.850]
	BALANCE CARRIED TO THE B/S		[502.989]	[568.824]	[435.160]
	EARNINGS IN FOREIGN CURRENCY
		Service Income	102.624	228.631	206.559
		Brand Contribution	233.432	0.000	0.000
		Sale of Raw material and packing material	0.373	0.134	0.100
	TOTAL EARNINGS		336.429	228.765	206.659
	IMPORTS
		Raw Materials and Packing Materials	79.525	77.891	115.526
		Finished Goods	149.528	0.000	0.000
		ERP Implementation cost (included in Capital Work in progress)	48.158	0.000	0.000
		Capital Goods	0.000	1.457	0.000
		Advertisement and promotion material	3.236	0.000	0.000
		Others	0.000	0.000	0.311
	TOTAL IMPORTS		280.447	79.348	115.837
	Earnings Per Share (Rs.)		7.23	[14.68]	4.42

KEY RATIOS

PARTICULARS		30.06.2010	30.06.2009	30.06.2008
PAT / Total Income	(%)	2.66	[5.27]	NA
Net Profit Margin (PBT/Sales)	(%)	4.09	[4.90]	NA
Return on Total Assets (PBT/Total Assets}	(%)	5.03	[7.52]	4.40
Return on Investment (ROI) (PBT/Networth)		0.21	[0.32]	0.13
Debt Equity Ratio (Total Liability/Networth)		3.39	3.32	1.95
Current Ratio (Current Asset/Current Liability)		1.80	2.59	2.78

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. in millions)

Particulars	30.06.2010	30.06.2009	30.06.2008
Sundry Creditors
- Micro, Small and Medium Enterprises (Refer note (a) and (b)	6.726	3.371	141.556
- Others	362.565	227.906
Total	369.291	231.277	141.556

Note:

a) Sundry creditors include Rs. Nil (2009: Rs. 4.671 millions) being overdrawn bank balances as per books consequent to issue of cheques at year end. The banks have positive balances as on that date.

b) Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of information and records available with the Management, the following disclosures are made for the amounts due to Micro, Small and Medium enterprises, who have registered with the competent authorities:

(Rs. in millions)

Particulars	30.06.2010	30.06.2009
Principal amount remaining unpaid to any supplier as at the year end	6.726	3.371
Interest due thereon	0.117	0.040
Amount of interest paid by the Company in terms of section 16 of the MSMED, along with the amount of the payment made to the supplier beyond the appointed day during the accounting year	0.000	0.000
Amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the MSMED.	0.117	0.040
Amount of interest accrued and remaining unpaid at the end of the accounting year	0.157	0.040

BACKGROUND:

Subject was incorporated on 8 October 1993.

The company’s key business activities comprise manufacturing and marketing of various international brands of alcoholic beverages, for domestic consumption. Effective 1 April 2006, the company has taken the manufacturing license of the third parties on lease and thus, all purchase and sales are in the name of the company. In 2007, the company has entered into arrangement with bottling units for production of Indian Made Foreign Liquor (‘IMFL’) brands. The production in the premises of third party units is carried out under close supervision. The company is also required to ensure adequate finance to the third party bottling units. During the year, the company imported “Bottled in Origin” (BIO) products for its further sales in the Indian domestic market.

OPERATIONS:

The business registered a decline of 30% in volume and 21% on Net Sales Value (NSV). The key achievements in F10 includes putting the right commercial structure in place, ensuring they have the best people and creating the right process. The stock cover in trade has also been realigned in the current financial year and represent change in strategy of driving value vs. volume. The Income from bottling arrangement with third parties reflected growth of 34% vs. lat year.

During the year company commenced import and distribution of bottled-in-origin (BIO) brands.

CONTINGENT LIABILITIES:

(Rs. in Millions)

Particular	30.06.2010	30.06.2009
Bank Guaranteed in respect of central and State Excise	60.498	10.938
Taxation matters under dispute in respect of applicability to certain contractual arrangements* (does not include interest and penalty, if any, not quantified by the appropriate authorities in certain cases)	868.164	515.089
Value Added tax	83.792	0.000
Income tax*	148.091	0.000
Custom matters	Not Quantified	Not Quantified
Total	1160.545	526.027

* The management is hopeful of succeeding in the above disputes based on legal opinions.

Bankers Charges Report as per Registry

Corporate identity number of the company	U99999MH1993PTC080795
Name of the company	DIAGEO INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	4^th Floor, Nicholas Piramal Towe, Peninusula Corporate Park, Ganpatrao Kadam Marg, Mumbai – 400 013, Maharashtra, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	80049507
Type of charge	Book Debts Movable Property
Particular of charge holder	Standard Chartered Bank, 90, Mahatma Gandhi Road, Fort, Mumbai – 400 001, Maharashtra, India
Nature of instrument creating charge	Charge amount reduced from Rs. 620.000 Millions to Rs. 5.000 Millions. The Bank continue to retain first pari passu charge over the assets to the extent of Rs. 5.000 Millions
Date of instrument Creating the charge	24.11.2010
Amount secured by the charge	Rs. 5.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As agreed by the Bank from time to time Terms of Repayment As Agreed by the Bank from time to time Margin As agreed by the Bank from time to time Extent and Operation of the charge Hypothecation by pari passu charge created by the borrower in favour of the bank over the stocks and book debts.
Short particulars of the property charged	All the company’s stock in trade both present and future including raw materials, packing materials, work in progress, finished goods, spares and stores wherever situate, held or kept in India. Including in the company’s premises/ Factory/ Godowns or held by any third party to the order and disposition of the company and/ or in transit and all documents of title negotiable instruments, policies of insurance and other documents and / or instruments relating thereto.
Date of instrument modifying the charge	27.01.2009
Particulars of the present modification	Now by the present modification Dated 24.11.2010 charge amount reduced from Rs. 620.000 Millions to Rs. 5.000 Millions

This form is for	Modification of charge
Charge identification number of the modified	80049507
Corporate identity number of the company	U99999MH1993PTC080795
Name of the company	DIAGEO INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	4^th Floor, Nicholas Piramal Towe, Peninusula Corporate Park, Ganpatrao Kadam Marg, Mumbai – 400 013, Maharashtra, India
Type of charge	v Book Debts v Movable Property
Particular of charge holder	v Standard Chartered Bank 90, Mahatma Gandhi Road, Fort, Mumbai – 400 001, Maharashtra, India E-mail: jagdish.pathak@standardchartered.com
Nature of description of the instrument creating or modifying the charge	Supplementary Hypothecation agreement of stocks/book debts (increase in limit)
Date of instrument Creating the charge	27.01.2009
Amount secured by the charge	Rs.620.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As agreed by the bank from time to time Terms of Repayment As agreed by the bank from time to time Margin As agreed by the bank from time to time Extent and Operation of the charge Hypothecation by pari passu charge created by the borrower in favour of the banks over the stocks and book debts
Short particulars of the property charged	All the company’s stock in tarde both present and future including raw materials, packing materials, work in progress, finished goods, spares and stores wherever situate held or kept in India including in the company premises/factory/godowns or held by any third party to the order and dispositing of the company and / or in transit and all documents of title negotiable instruments relating thereto
Date of latest modification prior to the present modification	07.01.2003
Particulars of the present modification	Now by the present modification dated 27.01.2009 the limit increased from Rs. 140.000 millions to Rs. 620.000 millions.

FIXED ASSETS:

v Plant and Machinery

v Furniture, Fixtures and Office Equipment

v Leasehold Improvements

v Vehicles

v Computers

Intangible Assets

v Software

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. 44.16
UK Pound	1	Rs. 72.10
Euro	1	Rs. 63.10

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	--
--CREDIT LINES	1~10	4
--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		26

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.