MIRA INFORM REPORT

BUSINESS INFORMATION REPORT

1. Summary Information

		Country	INDIA
Company Name	SUNDARAM AUTO COMPONents LIMITED	Principal Name 1	MR. V N VENKATANATHAN
Status	SATISFACTORY	Principal Name 2	MR. H LAKSHMANAN
		Registration #	18-051417
Street Address	JAYA LAKSHMI ESTATE, NO. 29(8), HADDOWS ROAD, CHENNAI – 600 006, TAMILNADU
Established Date	10.06.1992	SIC Code	--
Telephone#	91-44-28272233/ 27173524	Business Style 1	MANUFACTURER
Fax #	91-44-28257121	Business Style 2	--
Homepage	www.sundaramautocomponents.com	Product Name 1	AIR BRAKES HOSES
# of employees	APPROXIMATELY 350 (OFFICE 80, FACTORY 270)	Product Name 2	RUBBER MOULDED COMPONENTS
Paid up capital	Rs.74,000,000/-	Product Name 3	PLASTICS MOULDED COMPONENT
Shareholders	BODIES CORPORATE-100%	Banking	STATE BANK OF INDIA
Public Limited Corp.	NO	Business Period	19 YEARS
IPO	NO	International Ins.	--
Public Enterprise	NO	Rating	Ba (41)
Related Company
Relation	Country	Company Name
HOLDING COMPANY	INDIA	TVS MOTOR COMPANY LIMITED, CHENNAI	--
Note	--

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	741,788,000	Current Liabilities	953,781,000
Inventories	355,025,000	Long-term Liabilities	372,366,000
Fixed Assets	694,944,000	Other Liabilities	54,849,000
Deferred Assets	0,000	Total Liabilities	1,380,996,000
Invest& other Assets	24,497,000	Retained Earnings	361,258,000
		Net Worth	435,258,000
Total Assets	1,816,254,000	Total Liab. & Equity	1,816,254,000
Total Assets (Previous Year)	1,526,078,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	7,782,382,000	Net Profit	98,077,000
Sales(Previous yr)	4,796,864,000	Net Profit(Prev.yr)	(25,043,000)

MIRA INFORM REPORT

Report Date :

07.06.2011

IDENTIFICATION DETAILS

Name :	SUNDARAM AUTO COMPONents LIMITED

Registered Office :	Jaya Lakshmi Estate, No. 29(8), Haddows Road, Chennai – 600 006, Tamilnadu

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	10.06.1992

Com. Reg. No.:	18-051417

Capital Investment / Paid-up Capital :	Rs.74.000 millions

CIN No.: [Company Identification No.]	u29249tn1992plc051417

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Air Brakes Hoses, rubber Moulded Components, plastics Moulded Component and Two Wheelers.

No. of Employees :	Approximately 350 (Office 80, Factory 270)

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 1741000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is a part of TVs group. It is a well – established company having satisfactory track. There appears to be some losses being incurred by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered normal for business dealings at usual trade terms and conditions with slight caution.

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

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. Selvakumar
Designation :	Accounts Department

LOCATIONS

Registered Office :	Jaya Lakshmi Estate, No. 29(8), Haddows Road, Chennai – 600 006, Tamilnadu, India
Tel. No.:	91-44-28272233/ 27173524
Fax No.:	91-44-28257121
E-Mail :	corpsec@scl.co.in
Website :	www.sundaramautocomponents.com

Plant 1 :	Thally Road, Belagondapalli, hosur – 635 114, Tamilnadu, India

Plant 2 :	Plot B-11, Sipcot Industrial growth Centre, Oragadam, Sriperumbathur Taluk, Kanchipuram District - 602 105, Tamilnadu, India

Plant 3 :	Byathahalli Village, Kadakola Post, Mysore – 571311, Karnataka, India

DIRECTORS

As On 08.09.2010

Name :	Mr. Harihara Iyer Lakshmanan
Designation :	Chairman
Address :	Flat No. D1, Palacio, New No. 408, Old No. 216, TTK Road, Alwarpet – 600 018, Tamilnadu, India
Date of Birth/Age :	14.08.1933
Date of Appointment :	01.02.2003
DIN No. :	00057973

Name :	Mr. Vangipuram Navanitham Venkatanathan
Designation :	Director
Address :	New No. 34, Nachiappan Street, Mahalingappuram, Chennai – 600 034, Tamilnadu, India
Date of Birth/Age :	07.08.1945
Date of Appointment :	10.06.1992
DIN No. :	00059273

Name :	Mr. Chundi Narasimha Prasad
Designation :	Director
Address :	P No. 1822, IIIrd Floor, 13^th Main Road, Anna Nagar West, Chennai – 600 040, Tamilnadu, India
Date of Birth/Age :	01.07.1947
Date of Appointment :	06.05.2009
DIN No. :	01950656

Name :	Mr. Kunnath Narayanan Radhakrishnan
Designation :	Director
Address :	“Shoba Aster”, Apartment No.1022, 113/3 Bilekahalli Village, Vijaya Bank Colony, Bangalore – 560 076, Karnataka, India
Date of Birth/Age :	15.07.1962
Date of Appointment :	08.09.2010
DIN No. :	02599393

Name :	Mr. Seeplapothur Ganapathi Ramaswamy Murali
Designation :	Director
Address :	Plot No. 8, “Shruthi” 515 Housing Colony, H. A. L. III Stage, Bangalore – 560 075, Karnataka, India
Date of Birth/Age :	26.09.1950
Date of Appointment :	08.09.2010
DIN No. :	00348902

Audit Committee :	Mr. H. Lakshmanan, Chairman Mr. C.N. Prasad Mr. V. N. Venkatanathan

KEY EXECUTIVES

Name :	Mr. Kalyanasundaram Dharmarajan
Designation :	Company Secretary
Address :	C-14, Ground Floor, TVS Nagar, HOsur – 635109, Tamilnadu, India
Date of Birth/Age :	04.05.1960
Date of Appointment :	13.03.2008
Pan No. :	ACYPD7722N

Name :	Mr. P.S. Bashyam
Designation :	Manager
Address :	Block II, Type III, Door No. 3, Central Excise Housing, Thally Road, Hosur – 635109, Tamilnadu, India
Date of Birth/Age :	10.02.1955
Date of Appointment :	16.07.2010
Pan No. :	AEHPB8334D

Name :	Mr. Selvakumar
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 08.09.2010

Names of Shareholders		No. of Shares
TVS Motors Company Limited – India		7399994
Sujatha Balaji (Nominee of TVS Motor Company Limited)		1
C Mukundhan (Nominee of TVS Motor Company Limited)		1
V N Venkatanathan (Nominee of TVS Motor Company Limited)		1
K Gopala Desikan (Nominee of TVS Motor Company Limited)		1
H Lakshmanan (Nominee of TVS Motor Company Limited)		1
C Narasimhan (Nominee of TVS Motor Company Limited)		1
Total		7400000

As On 08.09.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Air Brakes Hoses, rubber Moulded Components, plastics Moulded Component and Two Wheelers.

Products :

Item Code No. (ITC Code)	Product Description
4009.00	Air Brake Hoses
4016.99	Rubber Moulded Components
8714.00	Plastics Molded Components
8711.00	Two Wheelers

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

No. of Employees :

Approximately 350 (Office 80, Factory 270)

Bankers :

State bank of India, Industrial Finance Branch, 155 Anna Salai, Chennai -600 002, Tamilnadu, India
The Bank of Nova Scotia - Coimbatore Branch, Classic Towers, 1547, Tiruchi Road, Coimbatore - 641 018, Tamilnadu, India
ICICI Bank Limited, Tambaram Branch, Chennai

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From bank
Secured by a first charge on the entire fixed assets of the company	97.500	98.545
Secured by exclusive charge on the movable fixed assets of the company created out of the loan.	171.875	234.375
Secured by hypothecation of present and future inventory and receivables.	0.000	138.999
Total	269.375	471.919

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Bank (Short Term)	17.970	4.927
From Holding Company (short term)	85.021	0.000
Total	102.991	4.927

Banking Relations :

Auditors :

Name :

Sundaram and Srinivasan

Chartered Accountants

Address :

New No. 4, Old No. 23, Sir C P Ramaswamy Road, Alwarpet – 600 018, Tamilnadu, India

Holding Company :

TVS Motor Company Limited, Chennai

Ultimate Holding company:

Sundaram – Clayton Limited, Chennai
T V Sundaram Iyengar and Sons Limited, Madurai

Joint Venture :

TVS Global Automobile Traders FZCO, Dubai

Fellow Subsidiaries :

TVS Motor Company (Europe),B.V, Amsterdam
TVS Motor (Singapore) Pte Limited, Singapore
PT.TVS Motor Company Indonesia, Jakarta
Anusha Investments Limited, Chennai
TVS Energy Limited, Chennai
TVS Investments Limited, Chennai
TVS Electronics Limited, Chennai
Tumkur Property Holdings Limited, Chennai
Prime Property Holdings Limited , Chennai
TVS-E Access (India) Limited, Chennai
TVS-E Servicetec Limited, Chennai
TVS Capital Funds Limited, Chennai
Sravanaa Properties Limited, Chennai
Southern Roadways Limited, Madurai
Sundaram Industries Limited, Madurai
The Associated Auto Parts Limited, Mumbai
TVS Interconnect Systems Limited, Madurai
TVS Logistics Services Limited, Madurai
Lucas - TVS Limited, Chennai
Sundaram Textiles Limited, Madurai
NSM Holdings Limited, Madurai
TVSNet Technologies Limited, Madurai
TOR Projects & Services Limited, Madurai
NK Telecom Products Limited, Madurai
NK Telesystems Limited, Madurai
TVS Automotive Europe Limited, UK
TVS CJ Components Limited, UK
TVS Logistics Iberia S.L., Spain
TVS Logistics Siam Limited, Thailand
TVS Autoserv GmbH, Germany
TVS Logistics Investment UK Limited, UK
YeleStre Holdings Limited, UK
Multipart (Holdings) Limited, UK
Multipart Solutions Limited, UK
IH Crick Property Co Limited, UK
Msys Software Solutions Limited, UK
Globe Dynamics Limited, UK
Globe Transport Products Limited, UK
TVS Dynamic Global Freight Services Limited, Chennai
TVS Commutation Solutions Limited, Chennai
Lucas Indian Service Limited, Chennai
TVS Automotive Systems Limited, Chennai
Iranian Automotive Systems, Iran

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7400000	Equity Shares	Rs.10/- each	Rs.74.000 millions

of the above:

2450000 Equity Shares were allotted for consideration other than cash
all the above shares are held by the holding company viz; TVS Motor Company Limited, Chennai and its nominees.

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		74.000	74.000	37.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		361.258	293.483	170.526
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		435.258	367.483	207.526
LOAN FUNDS
1] Secured Loans		269.375	471.919	535.107
2] Unsecured Loans		102.991	4.927	151.895
TOTAL BORROWING		372.366	476.846	687.002
DEFERRED TAX LIABILITIES		22.544	20.244	16.644

TOTAL		830.168	864.573	911.172

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		694.944	691.829	722.760
Capital work-in-progress		22.941	1.313	16.324

INVESTMENT		1.556	0.170	1.385
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	355.025	209.974	137.373
	Sundry Debtors	559.462	484.404	181.800
	Cash & Bank Balances	81.392	72.751	4.632
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	100.934	65.637	135.725
Total Current Assets		1096.813	832.766	459.530
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	953.781	657.428	283.803
	Current Liabilities	0.000	0.000	0.000
	Provisions	32.305	4.077	5.024
Total Current Liabilities		986.086	661.505	288.827
Net Current Assets		110.727	171.261	170.703

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		830.168	864.573	911.172

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	7782.382	4796.864	1381.559
		Other Income	9.599	9.784	14.507
		TOTAL (A)	7791.981	4806.648	1396.066

Less	EXPENSES
		Raw Material Consumed	6919.284	4186.092	888.398
		Labour Charges	24.164	27.460	26.962
		Salaries, Wages, Bonus, etc.	600.396	469.807	416.170
		TOTAL (B)	7543.844	4683.359	1331.530

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		248.137	123.289	64.536

Less	FINANCIAL EXPENSES (D)		51.233	76.316	38.928

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		196.904	46.973	25.608

Less/ Add	DEPRECIATION/ AMORTISATION (F)		72.937	67.713	58.696

	PROFIT BEFORE TAX (E-F) (G)		123.967	(20.740)	(33.088)

Less	TAX (H)		25.890	4.303	(14.500)

	PROFIT AFTER TAX (G-H) (I)		98.077	(25.043)	(47.588)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(51.021)	(25.978)

Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	--	NA
		Proposed Dividend	25.900	--
		Dividend Tax Payable	4.402	--
	BALANCE CARRIED TO THE B/S		6.754	(51.021)

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	15.126	30.292	31.979
		Other Earnings	0.449	1.354
	TOTAL EARNINGS		15.575	31.646	31.979

	IMPORTS
		Raw Materials	168.462	224.610	237.648
		Stores & Spares	1.085	1.504
		Capital Goods	34.867	12.125
	TOTAL IMPORTS		204.414	238.239	237.648

	Earnings Per Share (Rs.)		13.51	(6.87)	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.26	(0.52)	(3.40)

Net Profit Margin (PBT/Sales)	(%)	1.59	(0.43)	(2.37)

Return on Total Assets (PBT/Total Assets}	(%)	6.92	(1.36)	(2.76)

Return on Investment (ROI) (PBT/Networth)		0.28	(0.06)	(0.15)

Debt Equity Ratio (Total Liability/Networth)		3.12	3.10	4.70

Current Ratio (Current Asset/Current Liability)		1.11	1.26	1.59

LOCAL AGENCY FURTHER INFORMATION

performance:

The Company has shown a sales growth of 23% in rubber and plastics business in the year 2009-10 compared to the previous year 2008-09. The Company has earned a profit after tax of Rs. 99.967 millions in the year 2009-10.

During the last year, the Company started trading of automobiles viz., two wheelers. The business picked up well in the year 2009-10 achieving a growth in sales of 81%. Considering the steady growth in the automotive industry, it is expected that the business would pick up still further, in the current financial year 2010-11.

During the year, the Company established a new assembly and inspection station at Mysore for assembling of injection molded components, supplied from the Company’s factory at Hosur to one of the major customers namely M/s. TVS Motor Company Limited.

BUSINESS OUTLOOK:

The Automotive industry is expected to show growth of about 15% in 2010-11 compared to previous year. The Company is making investments in increasing manufacturing capacity. The Company has also secured substantial business from Daimler India, Ashok Leyland Nissan and Toyota India for their vehicles.

As a sound marketing strategy, the holding company wanted to explore possibilities of widening the prospects for its products in export market and to retain and improve brand loyalty for its products with the overseas customers. With this end in view, the Company held discussions for a joint venture in a hassle free zone like Dubai as a preferred City, so that Joint Venture (JV) could cater to markets in Middle East Asia and Africa. A new company, under the name and style, Global Automobile Traders FZCO was incorporated with head quarters in Dubai, to which the Company contributed 10% of its share capital with the other JV partner viz., Zodiac Business Services Pte Limited, Singapore (Zodiac), contributing to balance 90% of its share capital. Subsequently, the name of the joint venture company also changed as TVS Global Automobile Traders FZCO, subject to such compliances as required in this regard.

Zodiac has been actively engaging in rendering services in the field of export market, procurement support, business acquisition services and is a professionally managed entity with its office in Hongkong, UK, UAE, etc. With the Company’s interest in marketing vehicles, this new venture with the equity participation would help to boost the export market for the two and three wheelers.

form 8:

Corporate identity number of the company	u29249tn1992plc051417
Name of the company	SUNDARAM AUTO COMPONents LIMITED
Address of the registered office or of the principal place of business in India of the company	Jaya Lakshmi Estate, No. 29(8), Haddows Road, Chennai – 600 006, Tamilnadu, India
This form is for	Modification of charge
Type of charge	Book debts Others (All current assets present and future)
Particular of charge holder	State bank of India, Industrial Finance Branch, 155 Anna Salai, Chennai -600 002, Tamilnadu, India E-Mail : ingersal.r@sbi.co.in
Nature of instrument creating charge	Supplemental agreement of hypothecation of goods and assets dated 10.02.2009.
Date of instrument Creating the charge	10.02.2009
Amount secured by the charge	Rs.335.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Cash Credit – State Bank Advance Rate 13.75% p.a. EPC/FDBN – 2.75% below SBAr presently 9.580% p.a. upto 90 days Terms of repayment: This is a continuing charge Margin: Raw materials : Imported – 25% , Domestic – 25% Stores : 25% Stock in progress : 25% Receivable – Inland cover period – 90 days : 40% Extent and operation of the charge: This is a continuing charge. In case the company fails to fulfil its obligation under this agreement, the bank shall be entitled to take possession of the hypothecated goods and sell them and utilize the proceeds in full or part settlement of its claims.
Short particulars of the property charged (Including location of the property)	Charge on entire current assets of the company, present and future as per the supplemental agreement of hypothecation of goods and assets for increase in the overall limit dated 10.02.2009.
Particulars of the present modification	The existing charge viz; agreement of hypothecation of goods and assets 28.07.2004 to secure the working capital limits of Rs.138.000 millions, which was subsequently modified on 26.04.2008 to secure the enhanced working capital limit of Rs.280.000, is extended as security for the enhanced working capital limits (both find based and non fund based) for Rs.335.000 millions sanctioned by state bank of India.

Contingent Liability not provided for:

Particulars	31.03.2010 (Rs. in millions)
a) On Counter guarantee given to banks	32.230
b) On letters of credit	85.055
c) On bills of exchange drawn on customers discounted	64.462
d) On import of capital goods under export promotion capital goods scheme	3.973

Fixed assets:-

v Land

v building

v Plant and Machinery, Tools, dies and Jigs

v Vehicles

v Furniture and Fixtures equipment

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.44.72
UK Pound	1	Rs.73.46
Euro	1	Rs.65.47

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		41

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.

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