MIRA INFORM REPORT

Report Date :

18.11.2011

IDENTIFICATION DETAILS

Name :	GKN DRIVELINE (INDIA) LIMITED
Formerly Known As :	GKN INVEL TRANSMISSIONS LIMITED
Registered Office :	Plot No. 270, Sector – 24, Faridabad - 121005, Haryana
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	23.11.1998
Com. Reg. No.:	05-034079
Capital Investment / Paid-up Capital :	Rs.127.731 Millions
CIN No.: [Company Identification No.]	U74999HR1998PLC034079
TAN No.: [Tax Deduction & Collection Account No.]	RKTG03318A
PAN No.: [Permanent Account No.]	AAACG4276B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Auto Parts Components.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 11950000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. Directors are reported to be an experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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/ Factory 1 :	Plot No. 270, Sector – 24, Faridabad - 121005, Haryana, India
Tel. No.:	91-129-4091100/ 2232531
Fax No.:	91-129-2230580
E-Mail :	ashish.kumar@gkndriveline.com
Website :	www.gkndriveline.com
Factory 2 :	Plot No. B-13, SIPCOT Industrial Park, Vaipur A and B, Oragadam, Sriperumbadur, Kancheepuram – 602105, Tamilnadu, India
Tel. No.:	91-44-27142380
Fax No.:	91-44-27142300
E-Mail :	info@gkndriveline.com
Factory 3 :	34 and 35, Industrial Area, Dharuhera – 122106, Haryana, India
Tel. No.:	91-1274-398000/ 242579
Fax No.:	91-1274-242581

DIRECTORS

As on 24.06.2011

Name :

Dr. Dharam Vir Kapur

Designation :

Chairman

Address :

405, Aradhana Apartment, Sector XIII, R.K Puram, New Delhi-110066, India

Date of Birth/Age :

09.09.1928

Date of Appointment :

11.09.1987

DIN No.:

00001982

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U27109DL1901PLC022060	Honda Siel Power Products Limited	Director	31/03/1988	31/03/1988	-	Not Available for eFiling	NO
L40103DL2004PLC203950	Honda Siel Power Products Limited	Director	31/03/1988	31/03/1988	-	Active	NO
L29220MH1960PLC011773	Zenith Birla (India) Limited	Director	23/12/1988	23/12/1988	-	Active	NO
L24239MH1939PLC002893	Tata Chemicals Limited	Director	29/09/1989	29/09/1989	27/07/2007	Active	NO
U74899DL1995PLC070604	Drivetech Accessories Limited	Director	7/07/1995	7/07/1995	-	Active	NO
U40100HR1988PLC032877	Eastern India Powertech Limited	Director	17/07/1995	17/07/1995	31/03/2008	Active	NO
L17110MH1973PLC019786	Reliance Industries Limited	Director	28/03/2001	28/03/2001	-	Active	NO
U74999HR1998PLC034079	Gkn Driveline (India) Limited	Director	28/06/2004	28/06/2004	-	Active	NO
L70101HR1963PLC002484	Dlf Limited	Director	29/09/2006	21/04/2006	-	Active	NO
U40101DL2010PTC207559	Sunon Energy Private Limited	Director	26/08/2010	26/08/2010	-	Active	NO
U74999DL2011PTC219906	GSD Automation Private Limited	Director	27/05/2011	27/05/2011	-	Active	NO

Name :

Mr. Mansoor Anwar

Designation :

Director

Address :

29, Leonie Hill, #03-01, Horizon Tower (West Block), Singapore- 408600

Date of Birth/Age :

22.04.1957

Date of Appointment :

01.09.2002

DIN No.:

00467520

Name :

Mr. Dara Phirozeshah Mehta

Designation :

Director

Address :

10, Southlands, 177 Colaba Road, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

1307.1933

Date of Appointment :

28.06.2005

DIN No.:

0041164

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
L23109GA1967PLC000076	Goa Carbon Limited	Director	25/09/1978	25/09/1978	-	Active	NO
L24294MH1958PLC011052	Foseco India Limited	Director	8/11/1994	8/11/1994	22/04/2009	Active	NO
U74999MH1993PTC071079	Emerson Network Power (India) Private Limited	Director	16/03/1995	16/03/1995	-	Active	NO
U72300MH1996PTC103206	Bloomberg Data Services (India) Private Limited	Director	10/10/1996	10/10/1996	-	Active	NO
U21012DL1999PTC102815	Grolier International Private Limited	Director	15/12/1999	15/12/1999	-	Active	NO
U29192PN1993PLC071223	Emerson Climate Technologies (India) Limited	Director	26/02/2002	26/02/2002	-	Active	NO
U74999KA1993PLC046003	Dme (India) Private Limited	Alternate director	17/11/2003	17/11/2003	-	Active	NO
U01120MH1989PLC054377	Global Dolphin Drilling Company Limited	Alternate director	24/09/2004	24/09/2004	-	Active	NO
U74999HR1998PLC034079	Gkn Driveline (India) Limited	Director	28/06/2005	28/06/2005	-	Active	NO
U92120MH2005PTC156063	Bloomberg Television Production Services India Private Limited	Director	15/09/2005	15/09/2005	16/03/2007	Active	NO
L34102UP1988PLC010141	Insilco Limited	Director	31/12/2005	31/12/2005	-	Active	NO
U74899AP1993PTC055249	J T International (India) Private Limited	Alternate director	7/05/2007	7/05/2007	3/04/2008	Active	NO
U11202HR2007FTC041948	Howden Air and Gas India Private Limited	Director	6/06/2007	6/06/2007	18/06/2010	Active	NO
U93000AP2007FTC055977	Project Experts India Private Limited	Director	17/10/2007	17/10/2007	1/08/2009	Active	NO
U17114MH2000PLC126018	Reid and Taylor (India) Limited	Additional director	14/12/2009	14/12/2009	-	Active	NO

Name :

Mr. Ravindra Ojha

Designation :

Managing Director (w.e.f. 01.04.2011)

Address :

C-5/5, Ahiana Floors, Ardee City, Gurgaon-122003, Haryana, India

Date of Birth/Age :

08.07.1960

Date of Appointment :

01.11.2006

DIN No.:

00185324

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U74899DL1995PLC070604	Drivetech Accessories Limited	Director	1/05/2006	1/05/2006	-	Active	NO
U74999HR1998PLC034079	Gkn Driveline (India) Limited	Managing director	1/04/2011	1/11/2006	-	Active	NO

Name :

Mr. Marc Louis Gustave Vuarchex

Designation :

Director

Address :

267, Jalan Kampong Chantek, Singapour -587941, Singapore

Date of Birth/Age :

12.03.1952

Date of Appointment :

23.03.2011

DIN No.:

03487779

KEY EXECUTIVES

Name :	Mr. Ashish Kumar Pandey
Designation :	Secretary
Address :	H. No. A – 68, Ashoka Enclave II, Sector – 37, Faridabad – 121003, Haryana, India
Date of Birth/Age :	23.08.1977
Date of Appointment :	22.06.2010
Income – Tax PAN :	AKXPP2127N
AUDIT COMMITTEE :
Name :	Dr. D. V. Kapur
Designation :	Chairman
Name :	Mr. Mansoor Anwar
Designation :	Member
Name :	Mr. Olaf Steffen Pohle
Designation :	Member (upto 21.07.2010)
Name :	Mr. Javier Tamayo
Designation :	Member (upto 23.03.2011)
Name :	Mr. March Louis Gustave Vuarchex
Designation :	Member (from 23.03.2011)
Name :	Mr. Madan Singh Sisodia
Designation :	Senior Manager – Finance and IS/IT

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.06.2011

Names of Shareholders	No. of Shares
Mahi Pal Singh Dhariwal	121
Ajit Kumar Pal	200
Jagat Pal Khanna	242
Mayur Amin	200
Koulali Sadasiva Rao	121
V Sundara	242
P Prabhakar Rao	100
Vimla Devi Agarwal	120
Mohammed Siraj	200
Jagdish Nath Ahluwalia	242
Freny Shiawak Mistry	242
Ardeshir Ruttonji Wadia	1332
Subodh Bhogilal Shah	600
Marco Philippus Ardeshir Wadia	1211
Sanjnani Waghmare	242
Unit Trust Of India, India	400
Shashi Mital	300
Gaurav Bhatia	1200
Saurabh Narain	606
Anil Bhatia	1050
Kumar Banerjee	1000
Shreevallabh Damani	8000

Equity Share Break up (Percentage of Total Equity)

As on 24.06.2011

Category	Percentage
Nationalised / Other Banks	0.01
Mutual Funds	0.01
Foreign holdings (Foreign institutional investor(s), Foreign comanie(s) foreign financial institution(s), Non –resident indian(s) or Overseas corporate bodies or others	97.12
Bodies corporate	0.05
Other top fifty shareholders	0.48
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Auto Parts Components.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Drive Axles Including Constant Velocity Joints	870850.00

PRODUCTION STATUS AS ON 31.12.2010

Particulars	Unit	Licensed Capacity	Installed Capacity*
Drive Axle Assembly and Components including C. V. Joints	Sets	NA	180000

*Installed capacity is computed on a triple shift basis using a six day week and certified by the management and being a technical matter has been relied upon by the directors.

Particulars	Units	Actual Production
Drive Axle Assembly	Sets	1798081
Others	Nos	279980

GENERAL INFORMATION

No. of Employees :	700 (Approximately)
Bankers :	· HDFC Bank Limited · Canara Bank · Standard Chartered Bank · The Hongkong and Shanghai Banking Corporation Limited · Citibank N.A.

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountant
Address :	Building 8, Tower B, 8^th Floor, DLF Cyber City, Gurgaon-122022, Haryana, India
PAN.:	AAFFP3698A
Technical Collaborators :	GKN Driveline International GmbH, Germany
Group :	GKN Driveline (India) Limited is a part of group of GKN PLC and its affiliates
Ultimate parent Company :	GKN Plc, UK
Holding Company:	GKN Driveline International GmbH, Germany
Fellow Subsidiaries:	· GKN Japan Limited, Japan · GKN Driveline Deutschland GmbH, Germany · GKN Do Brasil Limiteda, Brasl · GKN Driveline Espana, Spain · GKN Driveline Firenzes SPA, Italy · GKN Driveline Sanford, USA · GKN Driveline Zumaia, Spain · GKN Glanzer Spicer, France · DKN Driveline (Malaysia) Sdn Bhd, Malaysia · GKN Francaise D,Achts, France · GKN Driveline Korea Limited, Korea · GKN Driveline (Thailand) Limited, Thailand · GKN Automotive Limited, U.K. · GKN Arya Durex limited, Spain · GKN Service International GmbH, Germany · GKN Group Services Limited, UK · GKN Sinter Metal Limited, Pune · GKN Driveline Birmingham Limited, U.K · GKN Driveline Walsall Limited · Unidrive Pty Limited, Australia · GKN Driveline Singapore Pte Limited, Singapore · GKN Driveline Brunico, SPA, Italy · GKN Driveline Slovenjia, d.o.o, Solvenia · GKN Driveline SA, France · GKN Walterscheid Gmbh, Germany · GKN Automotive AG, Germany · GKN Driveline North America, Inc, USA · GKN Driveline Polska So.Zo.o Poland · GKN Hardy Spicer Limited, UK · GKN Driveline Legazpi SA Spain · GKN Unior-Atras d o o · GKN Freight Services Limited, UK · GKN Driveline Seoul, Korea · GKN Driveline Trier GmbH · GKN Driveline Lazipur SL, Spain · GKN Driveline JTEKT Manufacturing Limited [Formerly GKN Driveline (Toyoda) Manufacturing] · GKN Holding PLC, UK
Joint Venture of GKN Plc, UK, The ultimate parent company :	· JILIN GKN Norinco Driveshafts · Shanghai GKN Driveshaft Company Limited · Transejes Transmisiones Homocienticas de Columbia · Taiway Limited · Univel Transmission (Pte) Limited · GKN JTEKT Limited, Japan
Subsidiaries :	· Drivetech Accessories Limited

CAPITAL STRUCTURE

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12773061	Equity Shares [Of the above 12393808 shares are held by GKN Driveline International Gmbh, Germany the holding company]	Rs.10/- each	Rs.127.731 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		127.731	127.731	127.730
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2861.841	2499.326	2222.941
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2989.572	2627.057	2350.671
LOAN FUNDS
1] Secured Loans		0.000	0.000	23.356
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	23.356
DEFERRED TAX LIABILITIES		84.295	83.691	52.171
TOTAL		3073.867	2710.748	2426.198
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1960.331	1951.270	1743.532
Capital work-in-progress		765.453	56.055	192.526
INVESTMENT		0.502	0.502	0.501
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	715.057	515.513	501.785
	Sundry Debtors	541.719	412.278	325.168
	Cash & Bank Balances	345.394	311.568	275.032
	Other Current Assets	0.304	5.823	6.102
	Loans & Advances	256.012	420.454	195.237
Total Current Assets		1858.486	1665.636	1303.324
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1372.926	852.630	739.693
	Other Current Liabilities	92.016	56.952	19.287
	Provisions	45.963	53.133	54.705
Total Current Liabilities		1510.905	962.715	813.685
Net Current Assets		347.581	702.921	489.639
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3073.867	2710.748	2426.198

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Income	5785.288	4368.047	4217.817
		Other Income	67.310	45.013	47.956
		TOTAL (A)	5852.598	4413.060	4265.773
Less	EXPENSES
		Manufacturing and Other Expenses	5080.406	3717.410	3669.490
		Increase/ Decrease in Finished Goods	(75.745)	31.939	(31.916)
		TOTAL (B)	5004.661	3749.349	3637.574
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		847.937	663.711	628.199
Less	FINANCIAL EXPENSES (D)		0.317	0.342	8.112
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		847.620	663.369	620.087
Less/ Add	DEPRECIATION/ AMORTISATION (F)		300.499	263.894	225.394
	PROFIT BEFORE TAX (E-F) (G)		547.121	399.475	394.693
Less	TAX (H)		184.606	123.090	137.780
	PROFIT AFTER TAX (G-H) (I)		362.515	276.385	256.913
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2135.001	1858.616	1601.703
	BALANCE CARRIED TO THE B/S		2497.516	2135.001	1858.615
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	163.581	161.883	354.037
	TOTAL EARNINGS		163.581	161.883	354.037
	IMPORTS
		Raw Material, Components and spares	1301.372	811.482	706.984
		Capital Goods	169.419	222.618	188.979
	TOTAL IMPORTS		1470.791	1034.100	895.963
	Earnings Per Share (Rs.)		28.38	21.64	20.11

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	6.19	6.26	6.02
Net Profit Margin (PBT/Sales)	(%)	9.46	9.14	9.35
Return on Total Assets (PBT/Total Assets}	(%)	14.32	11.04	12.95
Return on Investment (ROI) (PBT/Networth)		0.18	0.15	0.17
Debt Equity Ratio (Total Liability/Networth)		0.50	0.36	0.38
Current Ratio (Current Asset/Current Liability)		1.23	1.73	1.60

LOCAL AGENCY FURTHER INFORMATION

Operations:

The automotive industry has benefited from a good overall macro-economic environment and this has positive impact on consumer confidence. Car sales grew around 30% in financial year ending on March 31, 2011 as flurry of new models and low interest rates coupled well with the economic boom accelerated demand.

The volume of car sales is likely to close at 1.98 Mn. units in the financial year ending March 31, 2011 against 1.53 Mn. units in financial year ended March 31, 2010. The car production in India has increased by 27% from 1.93 Mn. units in FY 2010 to 2.45 Mn. in FY 2011.

The company has been able to maintain a growth rate of 34% in terms of value and 28% in terms of number of vehicle sets produced.

The company is acquiring industrial land admeasuring 10.87 acres for its West Project in Pune, Maharashtra, for expanding capacity to meet exceeding demand of the customers based in western part of India. The customers are Fiat, Spicer India, Tata Motors, Volkswagen, Mahindra and Mahindra and General Motors.

The in-house forging plant at its existing Chennai Plant is expected to commence production in the current year 2011.

Outlook :

As per the Economic Survey 2010-11, India’s economy will revert to the pre-crisis growth level of 9 per cent in the next year, buoyed by strong fundamentals. With high demand of vehicles, the good run of automotive industry is likely to continue.

According to the annual forecast of the Society of Indian Automobile Manufacturers, the car sale is expected to grow by 16%-18% in FY 2012. However, rising interest rates and possible increase in prices of vehicles due to implementation of Bharat Stage III norm are likely to affect the overall growth prospect of the automotive industry. The Indian economy is poised to achieve the growth rate of around 9 per cent in the next fiscal, despite the risks of global events such as volatility in commodity prices like crude oil exacerbated by political turmoil in the Middle East.

Bankers Charges Report as per Registry

Name of the company	GKN DRIVELINE (INDIA) LIMITED
Presented By	Tushar Dey, Company Secretary
1) Date and description of instrument creating the change	Joint Mortgages Deed Created on dated September 29, 1999 executed by GKN Invel Transmissions Limited (therein and hereinafter referred to as “the company”) in favour of the General Manager, District Industries Centre, Rewari, Haryana (therein and hereinafter referred to as “DIC”)
2) Amount secured by the charge/amount owing on the securities of charge	Sales Tax Deferment Loan of Rs. 188.355 Millions (therein and hereinafter referred to as “the Loan”)
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	The whole of the immovable and movable property of the Company situated at 34 and 35, Industrial Area, Dharuhera, Rewari (Haryana) including the Company’s moveable plant and Machinery, machinery spares, tools ands accessories and other moveable both present and future (save and except book debts)
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of DIC having agreed to provide Sale Tax Deferment Loan of Rs 188.355 Millions for nine years and the repayment of the above said loan with start from 6^th year onward i.e. 1^st April, 2002 and completed in 2014
5) Name and Address and description of the person entitled to the charge.	General Manager, District, Industries Centre, REwari, Haryana
6) Date and brief description of instrument modifying the charge	No instrument was executed but on the 29^th day of September, 1999, a joint Mortgage was created by the company in favour of the DIC (therein and hereinafter referred to as “the Lender”) by deposit of title deed with ICICI, acting on behalf of DIC in respect of Company’s immovable properties situated at 34 and 35, Industrial Area, Dhaurhera, District Rewari (Haryana) in order to create a security thereon as and by way of a Mortgage by deposit of title deeds pursuant to the Resolution passed by the Company on the May 25, 1999
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.	The above mentioned Joint Mortgage Deed is also now secured the Sales Deferment Tax Loan provided by DIC by deposit of title deed in respect of Company’s immovable properties situated at 34 and35s, Industrial Area, Dharuhera, District Rewari (Haryana) in addition to the secured loan provided by ICICI, IDBI, IFCI, LIC and ANZ together with all building and structures, thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Installation

· Mechanical and Testing Equipments

· Furniture and Fixtures

· Office Equipments

· Computers

· Vehicles

PRESS RELEASES

GKN DRIVELINE EXPANDS WITH PRECISION FORGE IN INDIA

Chennai, India, 2^nd November 2011 - GKN Driveline today opened a new precision forging facility at Oragadam near Chennai in Tamil Nadu.

Located 50 kilometers from Chennai, the 5,000-square-metre facility will supply precision forgings to GKN Driveline’s Oragadam CVJ Systems manufacturing plant which annually produces 1.2 million sideshafts for automotive manufacturers in South India. The CVJ Systems plant was opened in 2008 to meet the rapidly growing automotive market in India.

GKN Driveline has invested nearly Rs.480.00 Millions (£6.6m UK) in the new forging facility which will ensure that its CVJ Systems benefit from GKN Driveline’s proprietary forging technologies and quality. It will initially employ 60 people.

“This state-of-the-art forging facility is our first wholly-owned forging facility in the Asia Pacific region and reinforces our commitment to our India-based customers,” said Marc Vuarchex, managing director, GKN Driveline Asia Pacific. “Since the early 1980s, we have viewed India as an extremely important market for us. We now employ over 800 people in the country.”

Ravindra Ojha, managing director of GKN Driveline in India noted, “Our business in India continues to grow at an annual rate of 15 percent, and this investment helps ensure that we will continue to meet our customers growth throughout the region.”

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.50.72
UK Pound	1	Rs.79.88
Euro	1	Rs.68.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		64

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.