MIRA INFORM REPORT

Report Date :

31.05.2011

IDENTIFICATION DETAILS

Name :	AUTOMOTIVES STAMPINGS AND ASSEMBLIES LIMITED (w.e.f.01.08.2003)
Formerly Known As :	A TATA ENTERPRISES
Registered Office :	G 71/2, MIDC Industrial Area, Pune -411026, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.03.1990
Com. Reg. No.:	25-016314
Capital Investment / Paid-up Capital :	Rs.191.985 Millions
CIN No.: [Company Identification No.]	L28932PN1990PLC016314
TAN No.: [Tax Deduction & Collection Account No.]	PNEA04989F
Legal Form :	A public limited liability company. The Company’s shares are listed on the stock exchanges.
Line of Business :	Manufacturer of Components, Assemblies and Sub Assemblies
No. of Employees :	578 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1900000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealing at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	G 71/2, MIDC Industrial Area, Pune -411026, Maharashtra, India
Tel. No.:	91-20-27121500/27121677/66314000
Fax No.:	91-20-27123147
E-Mail :	cs@autostampings.com
Website :	www.autostampings.com
Corporate Office :	Gate No.427, Juna Chakan, Medankarwadi, Pune- 410 501, Maharashtra, India
Tel. No.:	91-2135-261181/261150/261100/261179/261180
Mobile No. :	91-9881729697
Fax No.:	91-2135-261151
E-Mail :	corporate@autostampings.com
Website :	www.autostampings.com
Works :	Bhosari Works: G-71/2, MIDC Industrial Area, Bhosari, Pune-411 026, Maharashtra, India Chakan Works: Gat No. 427, Medankarwadi, Chakan, Taluka Khed, Pune-410 501, Maharashtra, India Halol Works: Survey No. 173, Village- Khakharia, Taluka Savali, Near GIDC, Halol-389 350, Gujarat, India Pantnagar Works: Plot No. 71, Sector 11, IIE Pantnagar Industrial Estate, Udham Singh Nagar 263 153, Uttarakhand, India

DIRECTORS

As On : 28.04.2010

Name :	Mr. R.A. Savoor
Designation :	Director
Name :	Mr. L Lakshman
Designation :	Director
Name :	Mr. R. S. Thakur
Designation :	Director
Name :	Mr. Alberto Moreno
Designation :	Director
Name :	Mr. Amitabha Mukhopadhyayl
Designation :	Director
Name :	Mr. Francisco J. R. Mera
Designation :	Director
Name :	Mr. Pradeep Mallick
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Shailendra Dindore
Designation :	Secretary
Name :	Mr. Vijay Bijlani
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2011

Category of Shareholder	Total No. of Shares	% of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	7,648,906	75.00
Sub Total	7,648,906	75.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7,648,906	75.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	300	-
Financial Institutions / Banks	300	-
Foreign Institutional Investors	309,635	3.04
Any Others (Specify)	120	-
Foreign Mutual Fund	120	-
Sub Total	310,355	3.04
(2) Non-Institutions
Bodies Corporate	412,213	4.04
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1,242,717	12.19
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	538,475	5.28
Any Others (Specify)	45,875	0.45
Non Resident Indians	16,360	0.16
Clearing Members	28,565	0.28
Trusts	950	0.01
Sub Total	2,239,280	21.96
Total Public shareholding (B)	2,549,635	25.00
Total (A)+(B)	10,198,541	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	10,198,541	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Components, Assemblies and Sub Assemblies

Products :

• Skin parts of car
• Body in White Components
• Under Body members
• Chassis and Suspension parts
• Wheel Housing
• Oil Sumps
• Fuel Tanks

Product	Item Code No.
Sheet Metal Componennts Assemblies and Sub Assemblies	8708
Tools, Dies, and Moulds for Automobiles Industry	8462

Agencies Held :

MCS Limited

1^st Floor, 116-118, Akshay Complex, Off Dhole Patil Road, Near Ganesh Mandir, Pune-411001

Tel No. 91-20-30906685

Fax No.91-20-26129597

PRODUCTION STATUS (31.03.2010)

Particulars	Installed Capacity @	Actual Production (Nos.)
Product
Components, Assemblies and Sub-assemblies	89720 MT	15896660
Tools, Dies and Moulds	N.A.	41

GENERAL INFORMATION

Customers :

Ø Tata Motors

Ø Fiat India Private Limited

Ø Mahindra and Mahindra Tractor Division

Ø General Motors India Limited

Ø Piaggio India Limited

Ø John Deere Private Limited, USA

Ø FORD, Europe.

Ø Gujrat Setco Limited

Ø Trelleborg Germany.

No. of Employees :

578 (Approximately)

Bankers :

• HDFC Bank Limited
• State Bank of India
• Bank of India

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Term Loan from Banks( Refer Note 1 below)	513.580	662.500
(Payable within one year Rs.0.180 Million Previous year Rs.0.170 Million)
Working capital loans from Banks	0.000	30.000
Total	513.580	692.500

Notes:

1. Term Loans of Rs.362.500 Millions and of Rs.300.000 Millions from Banks are secured by way of first charge on the existing and future fixed assets of the Company's Chakan and Pantnagar Plants respectively.

2. Working capital loans are secured by hypothecation of current assets and second charge on the fixed assets of Chakan Plant of the Company.

Unsecured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Interest free sales tax loan	11.386	14.985
(Payable within one year Rs.3.608 Millions Previous year Rs.3.609 Millions)
Total	11.386	14.985

Banking Relations :	--
Auditors :
Name :	Statutory Auditors Price Waterhouse Chartered Accountant Internal Auditors B.K. Khare and Company Chartered Accountant Secretarial Auditors S.V. Deulkar and Company Company Secretaries Cost Audit (Internal) Dhananjay V. Joshi and Associates Cost Accountants

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20,000,000	Equity Shares	Rs.10/- Each	Rs.200.000 Millions
16,000,000	Preference Shares	Rs.10/- Each	Rs160.000 Millions
	Total		Rs.360.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,198,541	Equity Shares	Rs.10/- Each	Rs.101.985 Millions
9,000,000	12% Cumulative Redeemable Preference Shares	Rs.10/- Each	Rs.90.000 Millions
	Total		Rs.191.985 Millions

Note:

(Redeemable at par on June 30, 2010 with an option to redeem before maturity).

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		191.985	191.985	191.985
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		305.200	284.183	327.020
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		497.185	476.168	519.005
LOAN FUNDS
1] Secured Loans		513.580	692.500	605.010
2] Unsecured Loans		11.386	14.985	18.594
TOTAL BORROWING		524.966	707.485	623.604
DEFERRED TAX LIABILITIES		51.283	25.283	34.883
TOTAL		1073.434	1208.936	1177.492
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1005.239	1096.193	693.351
Capital work-in-progress		19.156	8.654	394.342
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	235.265	269.006	313.151
	Sundry Debtors	213.627	255.381	205.638
	Cash & Bank Balances	122.369	73.766	20.237
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	89.496	147.952	149.436
Total Current Assets		660.757	746.105	688.462
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	327.501	341.256	288.986
	Other Current Liabilities	229.435	258.909	263.773
	Provisions	54.782	41.851	45.904
Total Current Liabilities		611.718	642.016	598.663
Net Current Assets		49.039	104.089	89.799
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1073.434	1208.936	1177.492

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4143.697	3456.224	3009.871
		Other Income	29.008	29.336	15.018
		TOTAL (A)	4172.705	3485.560	3024.889
Less	EXPENSES
		Manufacturing Expenses	3890.652	3301.038	2819.916
		TOTAL (B)	3890.652	3301.038	2819.916
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		282.053	184.522	204.973
Less	FINANCIAL EXPENSES (D)		69.357	82.532	23.793
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		212.696	101.990	181.180
Less/ Add	DEPRECIATION/ AMORTISATION (F)		135.021	135.326	115.354
	PROFIT BEFORE TAX (E-F) (G)		77.675	(33.336)	65.826
Less	TAX (H)		26.225	(9.100)	22.866
	PROFIT AFTER TAX (G-H) (I)		51.450	(24.236)	42.960
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		34.909	77.746	72.819
Less	APPROPRIATIONS
		Transfer to General Reserve	5.000	0.000	7.500
		Proposed Preference Dividend	10.800	10.800	10.800
		Proposed Equity Dividend	15.298	5.099	15.298
		Tax on Dividend	4.335	2.702	4.435
	BALANCE CARRIED TO THE B/S		50.926	34.909	77.746
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	21.451	25.998	27.730
	TOTAL EARNINGS		21.451	25.998	53.728
	IMPORTS
		Raw Materials	36.718	100.759	59.917
		Stores & Spares	0.000	0.128	0.988
		Capital Goods	0.808	12.609	257.358
	TOTAL IMPORTS		37.526	113.496	318.263
	Earnings Per Share (Rs.)		3.81	(3.62)	2.97

QUARTERLY RESULTS (Rs In Millions)

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	1285.230	1347.090	1269.810	1415.810
Total Expenditure	1212.730	1275.840	1181.550	1308.860
PBIDT (Excl OI)	72.500	71.250	88.260	106.950
Other Income	0.500	0.280	0.110	0.160
Operating Profit	73.000	71.530	88.370	107.110
Interest	14.010	16.340	13.970	15.480
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	58.990	55.190	74.400	91.630
Depreciation	31.980	32.330	32.550	32.820
Profit Before Tax	27.010	22.860	41.850	58.810
Tax	8.950	7.600	14.070	18.200
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	18.060	15.260	27.780	40.610
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	18.060	15.260	27.780	40.610

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.23	(0.70)	1.42
Net Profit Margin (PBT/Sales)	(%)	1.87	(0.96)	2.19
Return on Total Assets (PBT/Total Assets}	(%)	7.29	(1.81)	4.76
Return on Investment (ROI) (PBT/Networth)		0.16	(0.07)	0.13
Debt Equity Ratio (Total Liability/Networth)		2.39	2.83	2.36
Current Ratio (Current Asset/Current Liability)		1.08	1.16	1.14

LOCAL AGENCY FURTHER INFORMATION

INCOME

Net Sales

The net sales increased by 19.89% during the year on the back of an increase in volumes of customer programmes being handled by the Company.

Other Income

The other income mainly consists of income from investments in mutual fund schemes, cash discount received, miscellaneous receipts and write back of provisions no longer required. Other income marginally decreased by 1.12%.

Expenditure

Raw Material Consumed (including Change in Stock)

Raw material consumed (including change in stock) as a percentage to sales reduced by 1.23% mainly because of lower tooling sales where the material content is high.

Payments to and provisions for employees

Employee cost increased by 6.50% due to full year impact of wage revisions effected in the previous year as well as year-on-year salary hikes.

Manufacturing, Selling & Other Expenses

Manufacturing, Selling & Other Expenses have increased by 25.14% as a result of increase in sales and also administrative expenses.

Profit before Interest, Depreciation and Tax

The Profit before Interest, Depreciation and Taxation increased from Rs. 184.520 millions to Rs. 282.050 millions.

Interest and Finance Charges

Interest and finance charges have decreased by 15.96% mainly on account of repayment of loans.

Depreciation and Amortization

The Depreciation is in line with the previous year in spite of additions to fixed assets which have been neutralized by some of the assets being fully depreciated in the current year.

Net Profit / (Loss)

The Profit after tax of Rs. 51.450 millions as against a Loss after tax of Rs. 24.240 millions in previous year is as a result of higher sales, write back of provisions no longer required and reduction in interest and finance charges.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The automotive industry globally is one of the largest industries and is a key driver of the economy. A sound transportation system plays a pivotal role in the country’s robust economic and industrial development. The automotive industry comprising the automobile and the auto component sectors has made rapid strides since the de-licensing and deregulation of the sector to Foreign Direct Investment in 1991. The fortunes of the auto components industry are closely linked to that of the automobile industry. The Indian auto components industry is linked with other engineering and manufacturing divisions in the country through both forward and backward integration. The industry has grown from being a relatively small domestic industry to one that supplies high value and critical components to global automotive giants. Today, India has the potential to manufacture a range of automotive components (about 20,000 in numbers) - from fasteners to engine parts. The Industry is highly fragmented with around 500 organized players. The unorganized players are mainly replacement market players or tier three and four component manufacturers.

OPPORTUNITIES AND THREATS

India is emerging as a global manufacturing hub for auto component manufacture. India is among the most competitive manufacturers globally of auto components especially, (a) Metal Intensive components: Forgings, Stampings and Castings; (b) Skilled Labour -intensive components: Machining, wiring-harness and other electrical components; and (c) Hi-tech components: Electronic Fuel Injectors. Apart from the growing demand from the global markets, the domestic automobile market boosted by the surge in domestic demand, is also contributing to the growth of the auto components industry. The Indian automobile is making inroads into the rural middle class after spreading itself amongst the urban and rural rich markets. It offers differentiated products to suit requirements of different class segments of customers. Rising steel prices and withdrawal of incentives by the Government which were provided during the economic slowdown could impact the growth of the industry.

SEGMENT-WISE PERFORMANCE

The Company’s sales are primarily to Domestic Automobile Component Segment. However, the Company also has a share in the export segment. During the year under review, the Company achieved domestic sales of Rs. 4,117.770 million as against Rs. 3,424.880 million in the previous year and export sales of Rs. 25.930 million as against Rs. 31.340 million in the previous year.

FUTURE OUTLOOK

With investments around US$ 15 billion slated for the sector over the next few years, the prospects for India’s auto market are bright. The auto component domestic market reflects corresponding promise. With increased outsourcing in an integrated supply chain model followed by the automotive industry, the medium term outlook for the auto component industry is positive. The indigenous demand for auto components is estimated to reach US$ 20 billion in next ten years. The Indian Passenger Car market offers ample opportunity for volume growth since the per capita Car penetration is only 7 per 1000 as compared to 500 in Germany. Analysts estimate domestic Car production to touch 3 million p.a. in the next three years. With liberalized policies of the Indian Government, the automobile production in the sub-continent is poised for steady growth. Steel will remain the dominant material for auto component due to its versatility. It is providing a wide range of properties through the choice of appropriate combination of composition and processing. Further, high recycling ability will always favour steel as a choice for use in auto component manufacturing.

FIXED ASSETS

• Land – Freehold
• Land – Leasehold
• Factory Building
• Office Building
• Plant and Machinery
• Tools, Jigs and Fixtures
• Furniture and Fixtures
• Office Equipments
• Vehicles

Intangible Assets

• Computer Software

AUDITED FINANCIAL RESULTS FOR YEAR ENDED 31.03.2011

(Rs. in millions)

SR. No.		Particulars	Quarter Ended	Year Ended
			31.03.2011	31.03.2011
			(Un-audited)	(Audited)
1.	(a)	Sales / Income from Operations	1544.251	5908.431
	(b)	Less : Excise Duty & Other Taxes	132.577	613.321
	(c)	Net Sales / Income from Operations {1(a)-1(b)}	1411.674	5295.110
	(d)	Other Operating Income	4.137	22.839
		Total Revenue {1(c)+1(d)}	1415.811	5317.949
2.		Total Expenditure
	(a)	(Increase) /Decrease in Stocks	(2.063)	(41.417)
	(b)	Consumption of Raw Materials	1091.186	4194.641
	(c)	Purchases of Goods	0.000	0.000
	(d)	Employees Cost	96.717	372.183
	(e)	Depreciation	32.823	129.680
	(f)	Other Expenditure	123.019	453.581
	(g)	Total {2(a) to 2(f)}	1341.682	5108.668
3.		Net Profit (+) / Loss (-) before Other Income, Interest,	74.129	209.281
		Extra Ordinary Items and Taxes (1-2)
4.		Other Income	0.163	1.055
5.		Net Profit (+) / Loss (-) before Interest, Extra Ordinary Items and Taxes (3+4)	74.292	210.336
6.		Interest	15.482	59.798
7.		Net Profit(+) / Loss (-) after Interest but before Extra Ordinary Items and Taxes (5-6)	58.810	150.538
8.		Extra Ordinary Income (+)/ Expenses (-) (Net)	--	--
		Others
9.		Profit(+) / Loss (-) before Tax (7-8)	58.810	150.538
10.		Provision for Taxation	18.200	48.815
11.		Net Profit (+) / Loss (-) (9-10)	40.610	101.723
12.		Paid-up Equity Share Capital
		(Face Value per Share ` 10/-Each )
		Equity	101.985	101.985
		Preference	90.000	90.000
13.		Reserves excluding Revaluation Reserves		370.665
14.		EPS (` per share):
		Basic	3.68	8.74
15		Public Shareholding
		- No. of Shares	2549635	2549635
		- Percentage of Shareholding	25.00	25.00
16		Promoter's and Promoter Group Shareholding:
	(a)	Non-encumbered
		- No. of Shares	7648906	7648906
		- Percentage of Shares(as % of the Total Shareholding of the Promoter's and Promoter Group)	100.00	100.00
		- Percentage of Shares(as % of the Total Share Capital of the Company)	75.00	75.00

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.10
UK Pound	1	Rs.74.27
Euro	1	Rs.64.35

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.