MIRA INFORM REPORT

Report Date :

04.05.2011

IDENTIFICATION DETAILS

Name :	VOLVO INDIA PRIVATE LIMITED

Registered Office :	Yalachahally Village Tavarekere Post, Hosakote Taluka, Bangalore – 562 122, Karnataka

Country :	India

Financials (as on) :	31.03.2009

Date of Incorporation :	02.08.1996

Com. Reg. No.:	08-24176

CIN No.: [Company Identification No.]	U50101KA1996PTC024176

TAN No.: [Tax Deduction & Collection Account No.]	BLRV03081B

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturers of Tractors, Tippers, Trailers and Bus Chassis.

RATING & COMMENTS

MIRA’s Rating :

Aa (72)

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 22000000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a part of Volvo, Sweden. The company has produced very good results and wiped out previous losses. Available information indicates high financial responsibility of the company. Financial position is good. Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long run.

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

LOCATIONS

Registered Office :	Yalachahally Village Tavarekere Post, Hosakote Taluka, Bangalore – 562 122, Karnataka, India
Tel. No.:	91-80-56914000 / 56914120
Fax No.:	91-80-27965280
E-Mail :	info@volvo.com laxminarayan.hegde@volvo.com
Website :	http://www.volvotrucks.co.in http://www.volvo.co.in
Area :	10 acres
Location:	Owned

Corporate Office :	201 Embassy Square, 148, Infantry Road, Bangalore – 560 001, Karnataka, INDIA
Tel. No.:	91-80-22266426-28 / 22228446
Fax No.:	91-80-22284448 / 22250721
Website :	http://www.volvotrucks.co.in
Area :	2000 sq. fts
Location:	Rented


Factory 1 :	Yalachahally, Tavarekere P.O., Old Madras Road, Hoskote, Bangalore -562 122, Karnataka, India
Tel. No.:	91-80-27965251/58/59
Fax No.:	91-80-27965233
E-Mail :	infor@volvo.com
Area :	10 acres
Location:	Owned

Factory 2 :	7 and 8 Phase I, Peenya Industrial Area, Bangalore – 560058, Karnataka

Regional Sales Offices :	Located at: · Raipur (Central Region) · Kolkata ( Eastern Region) · Delhi (Northern Region) · Bangalore (Southern Region) · Mumbai (Western Region)

Branches :	Located at: · Udaipur, Rajasthan · Hyderabad, Andhra Pradesh · Ahmedabad, Gujarat

DIRECTORS

Name :	Mr. Wedeking Eberhard Engelbert
Designation :	Chairman cum Managing Director
Address :	6, Ewart Park, Singapore-279738
Date of Birth/Age :	01.05.1958
Date of Appointment :	27.11.2007

Name :	Mr. Mrityunjaya Singh
Designation :	Managing Director
Address :	D 606, Prestige St. Johns Woods Apartments, No. 80, St. John Cross Roads, Tavarekere Main Road, Bangalore-560029, Karnataka, India
Date of Birth/Age :	28.02.1965
Qualification :	BE (Mechanical) PGD (Marketing)
Experience :	21 Years
Date of Appointment :	01.08.2008
Last Employment:	Ingersoll - Rand

Name :	Mr. Narsim Shenoy
Designation :	Vice Chairman
Address :	No. 33, Embassy Palace, Cunningham Road, Bangalore-560001, Karnataka, India
Date of Birth/Age :	26.04.1931
Date of Appointment :	09.04.1997

Name :	Mr. Bo Lennart Nilson
Designation :	Director
Address :	Fjallbruden 136, Angered, Gothenburg-42450, Sweden
Date of Birth/Age :	28.06.1955
Date of Appointment :	27.11.2007a

Name :	Mr. Glorgio Paris
Designation :	Director
Address :	Via Varses 40,21047, Saronna Va, Italy
Date of Birth/Age :	15.10.1967
Date of Appointment :	13.04.2006

Name :	Mr. Rolf Bertil Agren
Designation :	Director
Address :	East Gate International Apartment, 19/39, Dongzohong Street, Bejjing-100027, China
Date of Birth/Age :	06.05.1950
Date of Appointment :	17.07.2009

Name :	Mr. Harald Jens Wsergeland
Designation :	Director
Address :	Kullavikas Angsvag 10, Kullavik, Sweden
Date of Birth/Age :	21.03.1963
Date of Appointment :	17.07.2009

Name :	Mr. Jonasl Fogelberg
Designation :	Director
Address :	Onsala Pilvag, 5B, Halland, Sweden
Date of Birth/Age :	02.10.1962
Date of Appointment :	17.07.2009

Name :	Mr. Lars Lidman
Designation :	Director
Address :	Corta Sawdelswagatan 412 73, Gothenburg, Sweden
Date of Birth/Age :	17.09.1954
Date of Appointment :	04.08.1998

Name :	Mr. Ake Niklasson
Designation :	Director
Address :	Bokskogsbacken 66, S – 42256, Hisings Backa, Sweden
Date of Birth/Age :	12.05.1953
Date of Appointment :	14.03.2005
Date of Ceasing:	21.10.2008

Name :	Mr. Bo Vilhelm Gustavsson
Designation :	Director
Address :	Kutterspaansgatan, 20 416 80, Gothenburg, Sweden
Date of Birth/Age :	08.10.1952
Date of Appointment :	13.03.2002
Date of Ceasing:	04.08.1998

KEY EXECUTIVES

Name :	Mr. Laxminarayan Hegde
Designation :	Company Secretary

Name :	Mr. Indranil Chowdhury
Designation :	Vice President – Finance

Name :	Mr. Charence D’souza
Designation :	Vice President- HR and Administration

Name :	Mr. Somnath Bhlatltachrjee
Designation :	Vice President – Sales

Name :	Mr. Prabhakaran S
Designation :	Vice President (Volvo Penta)

Name :	Mr. Vishwanath C R
Designation :	DGM ( 3P Design)

Name :	Mr. Jonass Andeers Olsson
Designation :	Coordinator – Offshore Delivery VIT

Name :	Mr. Dong Jin Parkl
Designation :	Technicla Supportl Manager

Name :	Mr. Kjell Luindmark
Designation :	General Manager – Product Support

Name :	Mr. Michael Melin
Designation :	Project Manager

Name :	Mr. Jean Francois Hilico
Designation :	General Manager – 3P

Name :	Mr. Guglielmo Jean Frangois
Designation :	Chief Engineering – Cab Engineering

Name :	Mr. Per Arne Jillesjo
Designation :	General Manager – Volvo Parts

Name :	Mr. Glenvile Da Silva
Designation :	Vice President and General Manager

Name :	Mr. Ram Purohit
Designation :	General Manager – Volvo IT

Name :	Mr. Atanu Sengupta
Designation :	General Manager – Human Resources

Name :	Mr. Chidamber Datta
Designation :	General Manager – Volvo IT

Name :	Mr. Sabine Krummel
Designation :	Manager – Human Resources

Name :	Mr. Boman Niklas
Designation :	General Manager – Volvo Aero

Name :	Mr. Fabien Leroux
Designation :	EMS Project India Leader

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 17.07.2009

Names of Shareholders		No. of Shares
Volvo Truck Corporation, Sweden		10466883
Volvo Holding Sverige AB		1
Total		10466884

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2009

Category		Percentage of Holding
Foreign Holding (Foreign institutional investors Foreign companies(S), foreign financial institution, Non- resident(s) or Overseas corporate bodies		100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Tractors, Tippers, Trailers, Bus Chassis.

Products :

"VOLVO"

Product Description	ITC Code
Tractors	8701
Tippers	8704
Trailers	8716
Bus Chassis	8706

Imports :

Countries :

Sweden
France

Terms :

Selling :

Advance against Bookings terms

Purchasing :

Credit up to 90 days + Documents thru’ Banks

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Tractors	500 Nos.	347 Nos.
Trailers	500 Nos.	101 Nos.

GENERAL INFORMATION

Suppliers :

Volvo Truck Corporation, Sweden
Sundaram Clayton Limited, Chennai, Tamil Nadu, India
Radials International Limited, New Delhi, India
Brakes (India) Limited, Chennai, Tamil Nadu, India
Z. F. Steering Gears Limited, New Delhi, India
ELF Atochem, France
ELF Lubricants, France

Customers :

Transport Corporation of India Limited, Secunderabad, Andhra Pradesh, India
ACT India Limited, Chennai, Tamil Nadu, India
Kondapallai Transports Private Limited, Hyderabad, Andhra Pradesh, India
Mittal Road Carriers Private Limited, Mumbai, Maharashtra, India
Karnataka State Road Transport Corporation Limited, Bangalore, Karnataka, India

No. of Employees :

210

Bankers :

Vysya Bank, Overseas Branch, Bangalore – 560 001, Karnataka, India
Standard Chartered Grindlays Bank, M. G. Bangalore, Karnataka, India
ANZ Grindlays Bankl, Plc, Bangalore Branch, Raheja Towers, M.G. Road, Bangalore-560018, Karnataka, India

Facilities :

Secured Loan

As on 31.03.2009

Rs. (in Millions)

From a Company

(Represents principal portion of minimum lease payments payable for assets acquired on finance lease.)

0.106

Total

0.106


Banking Relations :	Good

Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	5^th Floor, Tower D, The Millenia, 1 and 2 Murphy Road, UIsoor, Bangalore-560008, Karnataka, India

Memberships :	Confederation of Indian Industry

Holding Company :	Volvo Truck Corporation, S-40508, Goteborg, Sweden

Ultimate Holding Company	AB Volvo, Sweden

Associates/Subsidiaries :	Volvo Truck India Private Limited Volvo Bus India Private Limited Volvo Car India Private Limited Volvo Penta India Private Limited PSC Electronics India Private Limited Volvo Truck Australia Private Limited, Australia Volvo De, Brazil Volvo Motor Graders Limited, Canada Volvo Information Technology GB Limited, Great Britian Volvo Construction Equipment, Korea Volvo Information Technology , East Asia, Malaysia Volvo Trucks North America Incorporation, USA Volvo Construction Equipment, Brussels Volvo East Asia Pte Limited, Singapore Volvo Parts Corporation, Sweden Volvo Bus Corporation, Sweden Volvo Information Technology, Sweden Celero Support AB, Sweden Volvo Wheel Loaders AB, Sweden Volvo Logistics AB Sweden Volvo Penta Corporation, Sweden Volvo Powertrain Corporation, Sweden Volvo Europa Truck NV, Belgium Renault Vehicules Industries, France Carrus OY, Finland Volvo IT North America, USA Volvo Parts North America Incorporation , USA Volvo East Asia Sdn. Bhd. Malaysia Carrus OY, Finland Volvo Construction Equipment, Belgium Volvo Bus Body Building Technologies India Private Limited Strongco Equipments (SE) Volvo Group Korea Company Limited (VGK) Marc Truck Incorporation (MT) Volvo CE AB- Hauler and Loader Division (VCEAB) Volvo China Investment Company Limited Volvo Truck Production, Austrlia Volvo Shipensburg, USA Volvo Polska Volvo ABG, Germany Volvo Wuxi, China Volvo Shanghai, China Volvo Bus India Limited (VBBT) Volvo Road Machinery Incorporation Volvo Eicher Commercial Vehiclels Limited (VECV)

CAPITAL STRUCTURE

AS ON 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- Each	Rs. 150.000 Millions
35000000	Redeemable Preference Shares (Note)	Rs.10/- each	Rs. 350.000 Millions
	Total		Rs. 500.000 Millions

Note:

At the option of the allotted, the preference shares are converted into equity shares at par or redeemable at par after 5 year but within 20 years form the dated of issue.

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10466884	Equity Shares	Rs.10/-each	Rs. 104.669 Millions

Note:

Of the above equity shares 10466883 (2008: 10466883) shares are held by Volvo Truck Corporation, Sweden, The holding Company.

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		104.669	104.669
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		5464.145	5366.570
4] (Accumulated Losses)		0.000	0.000
NETWORTH		5568.814	5471.239
LOAN FUNDS
1] Secured Loans		0.106	1.750
2] Unsecured Loans		489.053	19.345
TOTAL BORROWING		489.159	21.095
DEFERRED TAX LIABILITIES		0.000	0.000

TOTAL		6057.973	5492.334

APPLICATION OF FUNDS		0.000	0.000

FIXED ASSETS [Net Block]		2519.269	2674.848
Capital work-in-progress		126.674	58.630

INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		259.491	123.749

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3764.626	3259.509
	Sundry Debtors	1986.668	2639.576
	Cash & Bank Balances	133.614	2638.944
	Other Current Assets	162.080	116.628
	Loans & Advances	841.376	456.037
Total Current Assets		6888.364	9110.694
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2850.529	5000.761
	Provisions	885.296	1474.826
Total Current Liabilities		3735.825	6475.587
Net Current Assets		3152.539	2635.107

MISCELLANEOUS EXPENSES		0.000	0.000

TOTAL		6057.973	5492.334

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2009	31.03.2008
Sales Turnover		19493.000	22914.000
Other Income		216.000	280.000
Total Income		19709.000	23194.000

Profit/(Loss) Before Tax		1948.000	3599.000
Provision for Taxation		650.000	1177.000
Profit/(Loss) After Tax		1298.000	2422.000

Earnings in Foreign Currency :
	FOB Value of Exports	2513.925	1912.041
	Software Services	196.370	164.382
	Product Design Services	571.923	366.695
Total Earnings		3282.218	2443.118

Imports :
	Components / Kits	5723.166	5104.105
	Capital Goods	50.816	25.390
	Traded Items	3364.353	4542.556
	Spare Parts (Traded)	1367.403	1174.668
Total Imports		10505.738	10846.719

Expenditures :
	Cost of Materials	13613.000	14926.000
	Manufacturing Expenses	2706.000	2998.000
	Interest	16.000	26.000
	Depreciation & Amortization	317.000	375.000
	Other Expenditure	1109.000	4270.000
Total Expenditure		17761.000	19595.000

Earnings Per Share (Rs.)		124.01	--

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008
PAT / Total Income	(%)	6.59	10.44

Net Profit Margin (PBT/Sales)	(%)	9.99	15.71

Return on Total Assets (PBT/Total Assets}	(%)	20.71	30.54

Return on Investment (ROI) (PBT/Networth)		0.35	0.66

Debt Equity Ratio (Total Liability/Networth)		0.76	1.19
Current Ratio (Current Asset/Current Liability)		1.84	1.41

LOCAL AGENCY FURTHER INFORMATION

Operations:

The company has successfully completed its twelfth year of operations. The sales and other income of the company have decreased by 15% (12 months) compared to previous year (15 months). On an annualized basis revenue has grown by 5%. The reduction of operating income is due to sharing of distribution margin with VE Commercial Vehicles Limited. The operations have resulted in a margin with VE Commercial Vehicles Limited. The operations has resulted in a Profit before Tax of Rs. 1948.000 Millions for the years (12 Months) as against a profit before tax of Rs. 3599.000 Millions during the previous year (15 Months)

Joint Venture with Eicher Motors Limited in India

The directors informed that a Joint venture had been set up in India between AB Volvo (Parent Company of Volvo India Private Limited) and Eicher Motors Limited and Formed a company called VE Commercial Vechicles Limited.

As part of this joint venture agreement, the Distribution Undertaking comprising of sales and distribution of trucks and after sales services of trucks and buses including company owned dealership has been transferred to VE Commercial Vehicles Limited under a scheme of arrangement. The Scheme of arrangement has been duly approved by the High courts of Karnataka and New Delhi during January and February 2009 respectively. Accordingly the legal separation is effective April, 1 2009. However, the business and all the assets and liabilities pertaining to Distribution undertaking has been transferred to VE Commercial Vehicles Limited effective 1^st July 2008 i.e. appointed date as per the scheme of arrangement. The existing business of Truck manufacturing facilities at Hosskote will remain in the company.

Now the board is pleased to inform to the shareholder that the VE Commercial Vehicles Limited, a Joint Venture Company set up in India between AB Volvo (Parent Company of Volvo India Private Limited) and Eicher Motors Limited is operating successfully.

In view of the demerger of truck commercial business, VE Commercial Vehicles Limited issued and allotted to the shareholders of Volvo India Private Limited i.e. Volvo Truck Corporation, Sweden 1090300 fully paid up equity shares of Rs. 10/- each.

The Volvo products will continue to be branded as they are today. This Joint Venture has given the best possible platform to the company to grow the Volvo Truck business in India and support growth at most cost efficient operations.

Contingent Liabilities:

Particulars	31.03.2009 Rs. In Millions
Bank Guarantee	145.588
Excise Duty matters disputed by the Company	3.859
Service Tax Matters disputed by the Company	7.109
Transfer Pricing matters disputed by the company	423.418
Central Sales Tax and VAT matters disputed by the company	282.403
Bonds issued by the company in favour of customs authorities, pending assessment	8808.322

Bankers Charges Report as per Registry

Name of the company	M/s. Volvo India Private Limited
Presented By	The Vysya Bank Limited. M.G. Road, Branch, M.G. Road, Bangalore-560 001.& M/s. Volvo India Limited
1) Date and description of instrument creating the change	15.05.2002 Deed of assignment of receivables.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.82.088 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Charge by way of Assignments of Receivables belonging to the Company and Receivables from Persons as detailed in Schedule I to the Agreement.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest and Other Terms and Conditions as Specified by the Bank. Assignor will be holding all such Original documents and Materials for the Benefits of the Assignee in trust.
5) Name and Address and description of the person entitled to the charge.	The Vysya Bank Limited M.G. road Branch, M.G. Road, Bangalore-50 001. (A Banking Company)

Name of the company	VOLVO INDIA PRIVATE LIMITED
Presented By	ANZ Grindlays Bankl, Plc, Bangalore Branch, Raheja Towers, M.G. Road, Bangalore-560018, Karnataka, India
1) Date and description of instrument creating the change	23.08.1999 Hypothecation of Goods to secure advances and other indebtedness and hypothecation of book debts to secure overdraft / WCDL/ Inland bill Discounting / Packing Credit/ Export Bill Discounting/ Guarantees and Letter of Credit
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 75.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of the whole of the present and future stocks, book debts, raw materials, work in process finished goods such as Trucks, Vehicles etc. belonging to the company.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest and Margin as applicable from time to time Repayable on demand
5) Name and Address and description of the person entitled to the charge.	ANZ Grindlays Bankl, Plc, Bangalore Branch, Raheja Towers, M.G. Road, Bangalore-560018, Karnataka, India
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

Fixed Assets:

Land
Land Development
Buildings
Plant & Machinery
Free Hold Land
Leasehold Improvement
Furniture & Fixtures
Technical Know-How

Press release:

Bilaspur team for Volvo Adventure Global Finals Volvo in India has announced the finalists of the Volvo Adventure competition (http://www.volvoadventure.org 2007 for youngsters in India. Prehari Team, of Bharat Mata School, Bilaspur has won the first prize this year in a closely held competition among 55 schools all over the Country. Their project ‘Dissolution of Traffic Chaos’ secured the highest scores amongst all the Indian Projects and received accolades from the judges for their analysis, planning, action and the successful Outcome. Commenting on the project, Prof Madhav Gadgil mentions, “This is a very good practical Project”. This team will represent the country for the Global Finals in Sweden.

The winning team from Prehari School undertook a study to find a solution to the everyday traffic chaos in front of their school building, which was creating problems not only for them but also for the commuters who was using the road to go to the nearby railway and bus stations. After a lot of discussion and analysis, they provided a solution to regulate traffic. The result was very encouraging. There was no need to deploy police personnel at the point, unwanted crossing was eliminated, and VIP movements can be arranged without creating hassle to the commuters. Cycle-rickshaw and auto-rickshaw drivers started parking their vehicle in a regulated manner.

“Volvo initiated this Global environmental award to encourage young people to proactively participate in environmental education programs and gain International recognition through their local initiatives. It helps us reiterate our commitment to the environment and brings us closer to our vision of approaching problems in a co-operative manner between industry, society and various associations. This year’s winner focus on a common problem of traffic chaos in our cities and are proving that simple, but well-co-coordinated planning, can go a long way in streamlining traffic – which in turn has a profound impact on our environment and of course safety on the road too. I would like to congratulate the students from Prehari School and wish them luck at the global finals,” said Eric Leblanc, Managing Director and Volvo India.

Runners Up

Following the winning team, there are two joint runners up teams – ‘Waves’ from Cheriazheekal, Kerala and Team SLAM (Boston Matric School) from Chennai. Waves carried out a project involving water auditing of the area, an awareness campaign, setting up of a model, holding of Children's Parliament for Water and lobbying with the local self government and revival of the traditional vessel. Team SLAM project relates to inexpensive technology & methods utilized to recycle waste water discharged from various places such as hotels, canteens, slum areas etc. into which is readily usable - despite the scarcity for water in our city. The runners up will get a cash award each in support of their projects.

The Volvo Adventure Project

The finalists have been selected by eminent judges of global standing in the field of environment including Prof Madhav Gadgil in India, also a winner of Volvo Environment Prize.

The national winners get an all expenses paid trip to attend Volvo Adventure Conference in Sweden, present their environmental project and practical action to a jury of International experts, show their project to the world by publishing it on the Volvo Adventure Project/ Website and win a $10,000, $6,000 or $4,000 prize to fund the environmental project.

India contributed 55 projects this year for the competition.

The projects have been rated on four criteria: fact-finding and local research, planning of practical environmental action, describe vision and target for environmental improvement and involvement of youngsters in the project.

The Volvo Adventure Programme started back in 2002 and is now running for the sixth consecutive year. It is a joint project run by the Volvo Group, Volvo Car Corporation and United Nations Environment Programme (UNEP) to recognize and reward practical environmental action being taken by young people in their local community. Volvo Adventure is open to young people around the world aged between 13 and 16 years. Teams must constitute between two to five young people with one adult as supervisor. The Volvo Adventure Competition culminates with the Volvo Young Environmentalists Awards.

Earlier winners from India

In 2006, the finalist from India TVS HSS School, Madurai won the third prize in the final competition for their project ‘Wastage of drinking water’.

In 2002 & 2003, the Volvo Young Environmentalists Award was bagged by the Indian Team. This is remarkable, considering that there were over 30 contesting teams from around the world, on both occasions. In 2002, the team representing India–Team Little Eco-Friends from St. Josephs Indian High School, Bangalore went on to win the Award and a grant of US$10,000 for their thoughtful and effective project on reducing the usage of poly-bags.

In 2004, a team representing National Public school won the award with an innovative project aimed at reducing pollution caused by burning leaves.

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 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.44.34
UK Pound	1	Rs.73.69
Euro	1	Rs.65.75

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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		72

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.