MIRA INFORM REPORT

Report Date :

17.10.2011

IDENTIFICATION DETAILS

Name :	MISTRAL SOLUTIONS PRIVATE LIMITED w.e.f 29.10.2007
Formerly Known As :	MISTRAL SOFTWARE PRIVATE LIMITED
Registered Office :	#60, Adarsh Regent, 100 Feet Ring Road, Domlur, Bangalore – 560071, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.05.1999
Com. Reg. No.:	08-025232
Capital Investment / Paid-up Capital :	Rs. 22.263 Millions
CIN No.: [Company Identification No.]	U72200KA1999PTC025232
Legal Form :	Private Limited Liability Company
Line of Business :	Providing professional services and IP/PDT (PS and IP) segment is in the business of hardware reference designs, driver development, board support packages, codes and system integration and developing IN and Products.
No. of Employees :	Not Available

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 1760000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears to be some dip in the turnover and profitability of the company due to recession. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. 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 / Headquarters :	60, Adarsh Regent, 100 Feet Ring Road, Domlur, Bangalore – 560071, Karnataka, India
Tel. No.:	91-80-30912600
Fax No.:	91-80-25356440
E-Mail :	bala@mistralsolutions.com info@mistralsolutions.com
Website :	www.mistralsolutiions.com
USA Headquarters :	4633, Old Ironsides Drive, Suite 410, Santa Clara, CA – 95054
Tel. No.:	+1-408-705-2240/987-9660
Fax No.:	+1-408-987-9665
E-Mail :	Us_west@mistralsolutions.com
Regional Office – Hyderabad :	12-13-668/4, Plot No.9, Nagarjuna Nagar, Tarnaka, Hyderabad- 500017, India
Tel. No.:	91-40-42006419/40210834/40210835/42203552
Fax No.:	91-40-42203552
E-Mail :	hyd@mistralsolutions.com
Regional Office - Delhi :	412, E Block, International Trade Towers, Nehru Place, New Delhi 110019, India
Tel. No.:	91-11-41637132
Fax No.:	91-11-41637131
E-Mail :	delhi@mistralsolutions.com

DIRECTORS

As on 01.07.2007

Name :

Mr. Syed Moktar Ahmed

Designation :

Managing Director

Address :

No.52/1, Bangiappa Garden, 3^rd Cross, Shanti Nagar, Bangalore – 560027, Karnataka, India

Date of Birth/Age :

10.02.1967

Date of Appointment :

25.05.1999

DIN No.:

00225648

Other Directorship:

S.No.	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
1	U72200KA1997PTC022685	Mistral Solutions Private Limited	Managing director	22-08-97	22-08-97	-	Amalgamated	NO
2	U72200KA1999PTC025232	Mistral Solutions Private Limited	Managing director	25-05-99	25-05-99	-	Active	NO
3	U72900KA2008PTC046595	Exora Technologies Private Limited	Director	29-05-08	29-05-08	26-07-10	Active	NO
4	U72211KA2010PTC056180	Aero Electronics Private Limited	Director	08-12-10	08-12-10	-	Active	NO

Name :

Mr. Rajeev Ramchandra

Designation :

Whole Time Director

Address :

No.3373, A 7 B ll Stage, 13^th A Main, 8^th Cross, Indiranagar, Bangalore – 560038, Karnataka , India

Date of Birth/Age :

31.05.1967

Date of Appointment :

25.05.1999

DIN No.:

00178796

Other Directorship:

S.No.	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
1	U72200KA1997PTC022685	Mistral Solutions Private Limited	Whole-time director	22-08-97	22-08-97	-	Amalgamated	NO
2	U72200KA1999PTC025232	Mistral Solutions Private Limited	Whole-time director	25-05-99	25-05-99	-	Active	NO
3	U72211KA2010PTC056180	Aero Electronics Private Limited	Director	08-12-10	08-12-10	-	Active	NO

Name :

Mr. Mujahid Mokhtar Alam

Designation :

Director

Address :

No. 56, 12^th Main BTM 1^st Stage, Bangalore – 560029, Karnataka , India

Date of Birth/Age :

11.12.1972

Date of Appointment :

15.04.2009

DIN No.:

02651595

Name :

Mr. Sandeep Shiamsunder Singhal

Designation :

Additional Director

Address :

Flat No. 16, Konark Express, Dr. E. Moses Road, Worli, Mumbai – 400018, Maharasahtra, India

Experience :

21.10.1966

Date of Appointment :

19.01.2010

DIN No.:

0422796

Other Directorship:

S.No.	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
1	U73900MH1998PTC116053	Netmagic Solutions Private Limited	Director	09-07-01	09-07-01	-	Active	NO
2	U72300MH2000PTC124984	Systime Global Solutions Private Limited	Director	27-07-01	27-07-01	01-12-08	Active	NO
3	U72200MH1999PTC123007	Eventures India Private Limited	Director	27-07-01	27-07-01	-	Active	NO
4	U74300MH2000PTC126354	Ignitee Digital Solutions Private Limited	Additional director	30-09-10	13-08-01	24-01-11	Active	NO
5	U74300MH1999PTC120140	Contests2win Com India Private Limited	Nominee director	29-09-01	29-09-01	-	Active	NO
6	U74140MH2001PTC133168	Medusind Solutions India Private Limited	Director	27-09-06	20-04-06	-	Active	NO
7	U51395MH2003PTC142173	MOBILE2WIN INDIA PRIVATE LIMITED	Director	23-06-06	23-06-06	-	Active	NO
8	U65999MH2007PTC167234	Nexus India Capital Advisors Private Limited	Managing director	12-08-08	24-01-07	-	Active	NO
9	U51220MH2004PTC145857	Suminter India Organics Private Limited	Director	04-12-07	04-12-07	-	Active	NO
10	U74300MH2005PTC150598	Media2win India Private Limited	Nominee director	30-06-08	30-06-08	-	Active	NO
11	U72200MH2006PTC160596	Games2win India Private Limited	Nominee director	30-06-08	30-06-08	-	Active	NO
12	U72200KA2004PTC034432	Eka Software Solutions Private Limited	Director	17-03-09	17-03-09	-	Active	NO
13	U72200AP1996PTC024351	Deccan Health Care Private Limited	Director	29-09-09	10-07-09	-	Active	NO
14	U72200KA1999PTC025232	Mistral Solutions Private Limited	Director	26-08-10	19-01-10	-	Active	NO
15	U74999DL2003PTC122939	North End Foods Marketing Private Limited	Director	19-05-10	19-05-10	-	Active	NO
16	U93090DL2009PTC193172	Sohan Lal Commodity Management Private Limited	Director	19-05-10	19-05-10	-	Active	NO
17	U41000MH2010FTC208464	Jaldhara Technologies Private Limited	Director	30-09-10	30-09-10	-	Active	NO
18	U29253MH2007PTC172479	Sedemac Mechatronics Private Limited	Additional director	10-06-11	10-06-11	-	Active	NO
19	U36109GJ2011PTC063731	Kribha Handicrafts Private Limited	Director	05-08-11	05-08-11	-	Active	NO
20	U65993TN1980PTC008184	Bee Pee Jain Finance & Investments Private Limited	Additional director	13-08-11	13-08-11	-	Active	NO
21	U93000DL2011PTC219498	Lapis Marketing Services Private Limited	Nominee director	23-08-11	23-08-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Govinda Neerchalu Bhat
Designation :	Secretary
Address :	No. 367, Ishavasya, 7^th Cross, Chowdeshwari Nagar, Hebbal Dasarahalli, Bangalore – 560024, Karnataka
Date of Birth/Age :	17.07.1964
Date of Appointment :	03.03.2008
Name :	Mr. Sanjay Virnave
Designation :	Advisor and Chief Executive Officer
Name :	MR. Arun Sinha
Designation :	Advisor
Name :	Anees Ahmed
Designation :	Chief Executive Officer and President
Date of Birth/Age :	43 Years
Qualification :	B.Tech
Experience :	21 Years
Name :	Mr. Venkatakrishna
Designation :	VP – HW
Date of Birth/Age :	40 Years
Qualification :	B.Tech
Experience :	21 Years
Name :	Ms Supriya Vaishnavi
Designation :	Country Manager Sales
Date of Birth/Age :	38 Years
Qualification :	BSc, MBA
Experience :	14 Years
Name :	Mr. Govinda Bhat
Designation :	CFO and CS
Address :
Date of Birth/Age :	45 Years
Qualification :	CA, ASC
Experience :	18 Years
Name :	Mr. Selvaraj Kaliyappan
Designation :	General Manager – HW
Date of Birth/Age :	41 Years
Qualification :	B.Tech
Experience :	17 Years
Name :	Mr. Ashish Singh
Designation :	General Manager – sales
Date of Birth/Age :	48 Years
Qualification :	B.Tech
Experience :	20 Years
Name :	Mr. Srinivas P. R
Designation :	General Manager – sales
Date of Birth/Age :	38 Years
Qualification :	B.Tech
Experience :	15 Years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.08.2010

Names of Shareholders ( Equity Shares)	No. of Shares
S.M Ahmed	720002
Rajeev Ramchandra	718688
Narayanan BKP	259344
Athif Allam	20400
Sel Varaj K	26900
Sharath M.N	16000
Venkatakrishna	47400
Girish N	6000
Mujahid Alam	29100
Nagesh R.	24800
Pawan Kumar Vashisht	27400
Srinivas P.R	26400
Zubair Ahmed	10500
Anuradha A	8000

Names of Shareholders ( Preference Shares)	No. of Shares
Jafco Investment (Asia Pacific) Limited, Singapore	237772
Nexus India Capital Advisors Private Limited , India	277400
TOTAL	515172

As on 03.05.2011

Names of Allottee ( Equity Shares)	No. of Shares Allotted
Mujahid Alam	10000
Surendar G	300
Siddalinga Prasad	300
Deepa Kannan	200
TOTAL	10800

Equity Share Break up (Percentage of Total Equity) 31.03.2010

Category	Percentage
Venture Capital	30.22
Directors or relatives of Directors	32.31
Other top fifty shareholders	37.47
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing professional services and IP/PDT (PS and IP) segment is in the business of hardware reference designs, driver development, board support packages, codes and system integration and developing IN and Products.

Products / Services :

Product/ Services Descriptions	Item Code No.
Computer Hardware/ Software Development	852490

PRODUCTION STATUS 31.03.2010

Particulars	Unit	Actual Production
Class of Goods
Or44P EVM Full Kit	Nos	1468
VME Cards	Nos	70
E1, 11 PCI and Base Card	Nos	4
Others	Nos	0

NOTES:

1 here is no opening or closing stock (excluding stock in transit).

2 the entire production is on contract basis and hence no installed capacity details are furnished. phis is certified by the management and relied upon by the auditors.

3 Items none of which individually exceeds 10.7 of total turnover were included under 'Others': hence, quantitative details not furnished.

4 Figures in brackets relate to previous year

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

ING Vysya Bank Limited, 2006, 100 Feet Road, Hal ll Stage, Indiranagar, Bangalore – 560038, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Banks: Term Loan (Repayable within one year Rs. 0.880 Million)	1.033	2.432
Cash Credit and Packing Credit	18.321	26.535
Interest Accrued and due thereon	0.169	0.000
From Financial Solutions: Term Loan (Repayable within one year Rs. 0.424 Million)	1.031	0.318
Total	20.554	29.285
Notes: 1) Secured by hypothecation of fixed assets purchased out of the term loan 2) Secured by hypothecation of stock, book debts and collateral security of fixed deposits

Banking Relations :
Auditors :
Name :	Prica Waterhouse and Company Chartered Accountant
Address :	5^th Floor, Tower D, 1 and 2 Murphy Road, Ulsoor, Bangalore – 560008, Karnataka , India
PAN.:	AADFP9359C
Subsidiaries :	Mistral Software Inc, USA

CAPITAL STRUCTURE

After 26.08.2010

Authorised Capital Rs. 35.000 Millions

Issued, Subscribed and paid up capital Rs. 22.493 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.5/- each	Rs. 30.000 Millions
1000000	Preference Shares	Rs.5/- each	Rs. 5.000 Millions
	TOTAL		Rs. 35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3937366	Equity Shares	Rs.5/- each	Rs. 19.687 Millions
515172	Preference Shares	Rs.5/- each	Rs. 2.576 Millions
	TOTAL		Rs. 22.263 Millions

Notes:

1) 4 Equity Shares of Rs. 10 each fully paid up have been capitalized by splitting into 8 shares of Rs. 5 each fully paid up after amalgamation.

2) 242,000 Equity shares are issued as fully paid up bonus shares by capitalizations of general reserve.

3) 69000 (2009:69000) Equity shares are issued free of cost to employees of the company for services rendered by them.

As on 26.08.2010

Issued, Subscribed & Paid-up Capital of Rs. 22.493 Millions

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		22.263	22.251	21.154
2] Stock Options Outstanding		2.355	2.250	4.538
3] Reserves & Surplus		417.747	408.783	357.042
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		442.365	433.284	382.734
LOAN FUNDS
1] Secured Loans		20.554	29.285	6.808
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		20.554	29.285	6.808
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		462.919	462.569	389.542
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22.600	31.296	36.079
Capital work-in-progress		0.000	0.000	0.330
INVESTMENT		32.711	32.711	47.978
DEFERREX TAX ASSETS		21.558	13.737	2.805
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.830	21.302	0.000
	Sundry Debtors	228.759	347.300	218.603
	Cash & Bank Balances	225.515	208.675	187.085
	Other Current Assets	16.843	23.364	21.150
	Loans & Advances	30.956	16.205	20.053
Total Current Assets		514.903	616.846	446.891
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.138	127.571	66.537
	Other Current Liabilities	77.503	88.117	71.215
	Provisions	21.212	16.335	6.789
Total Current Liabilities		128.853	232.023	144.541
Net Current Assets		386.050	384.825	302.350
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		462.919	462.569	389.542

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	509.963	649.319	510.654
		Other Income
		TOTAL (A)	509.963	649.319	510.654
Less	EXPENSES
		Office Expenses	487.925	582.672	457.492
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	487.925	582.672	457.492
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		22.038	66.647	53.162
Less	INTEREST EXPENSES (D)		2.462	2.646	0.899
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		19.576	64.001	52.263
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.401	14.226	15.126
	PROFIT BEFORE TAX (E-F) (G)		5.175	49.775	37.137
Less	TAX (H)		(3.621)	2.468	6.934
	PROFIT AFTER TAX (G-H) (I)		8.796	47.307	30.213
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		156.337	109.029	78.816
	BALANCE CARRIED TO THE B/S		165.133	156.336	109.029
	EARNINGS IN FOREIGN CURRENCY
		Professional Services and IP Sates	254.489	310.986	Na
		Commission Income	18.321	9.964	NA
		Income from Support Services	4.620	5.618	NA
	TOTAL EARNINGS		277.430	326.568	NA
	IMPORTS
		Components, Hardware and Software	133.363	246.364	Na
		Capital Goods	1.771	1.939	NA
	TOTAL IMPORTS		135.134	248.303	NA
	Earnings Per Share (Rs.)
	Basic		1.98	10.92	NA
	Diluted		1.95	10.77	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.72	7.29	5.92
Return on Total Assets (PBT/Total Assets}	(%)	0.96	9.26	7.69
Return on Investment (ROI) (PBT/Networth)		0.01	0.12	0.10
Debt Equity Ratio (Total Liability/Networth)		0.33	0.60	0.39
Current Ratio (Current Asset/Current Liability)		4.00	2.66	3.09

LOCAL AGENCY FURTHER INFORMATION

BUSINESS PERFORMANCE

Business performance of the Company was impacted by the recessionary operating environment during the year. Total Revenues decreased to Rs. 509.963 millions from Rs. 649.319 millions in the previous year – a decline of 21.46%. The Company made all efforts to keep the costs under control. As a result of this and other prudent measures adopted the operating profit of Rs. 22.038 millions (4.32% of total revenues) was achieved. As a result of lower operating profits the Profit after Tax decreased to Rs. 8.796 millions (1.73% of total revenues) from Rs. 47.307 millions (7.28% of total revenues) in the previous year. The Directors will make all the efforts to improve the business performance of the Company during the current financial year

CONTINGENT LIABILITY:

(Rs. in millions)

Particulars	2010	2009
Bank Guarantee (excluding Performance Guarantee)	1.373	0.624
Income Tax Matters in Dispute	2.139	1.783
Customs Duty Matters in dispute	0.333	0.333

Notes:

1) Relates to disallowance of teleconurunr (ation and travel expenses by the Income Tax department, which is disputed by the Company and an appeal has been filed with the Commissioner of Income tax (Appeals), Bangalore.

3) Relates to demand from Customs authorities tc wards misinterpretation of prices of imported items, which is disputed by the Company and an appeal, has been filed with the Commissioner of Customs (Appeals). Bangalore.

FORM 8:

Corporate identity number of the company	U72200KA1999PTC025232
Name of the company	MISTRAL SOLUTIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	60, Adarsh Regent, 100 Feet Ring Road, Domlur, Bangalore – 560071, Karnataka, India Email : Bala@mistralsolutions.com
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	80044889
Type of charge	Book Debts Movable Property(not being pledge)
Particular of charge holder	ING Vysya Bank Limited, 2006, 100 Feet Road, Hal ll Stage, Indiranagar, Bangalore – 560038, Karnataka, India Email : cms@companiesinn.com
Nature of instrument creating charge	Supplemental Deed of Hypothecation Letter of Renewal
Date of instrument Creating the charge	27.07.2010
Amount secured by the charge	Rs. 140.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : OD-BD : IVBR+5% PCL : IVBR+3% BG : Commission 1.50% LC : Commission-As per bank norms Terms of Repayment: OD-BD : On Demand PCL : On Demand BG : On Demand LC : On Demand Margin: D-BD: 40% on Book Debts. PCL : 25% BG: Cash Margin-By way of 10% in the form of deposits. LC : Cash margin-10% Extent and Operation of the charge: First charge on book debts of the company both present and future. First charge on fixed assets i.e Computers and accessories, furniture and fixtures, Plant and Machinery and Office equipment, having value of INR 20.174 millions as per BS of 31.03.2010 both present and future of the company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All the book debts of the company both present and future. All the fixed assets ie, Computers and accessories, Furniture and fixtures, Plant and Machinery and Office equipment of the company both present and future.
Particulars of the present modification	The total limit has been modified to Rs.140.000 millions as OD-BD of Rs.15.000 millions PCL of Rs.15.000 millions BG of Rs.100.000 millions and LC of Rs.10.000 millions. All other terms and conditions remain same.

FIXED ASSETS:

Intangible Assets:

• Product Development Cost
• Computer Software

Tangible Assets:

• Leasehold Improvement
• Computer Systems
• Plant and Machinery
• Office Equipment
• Furniture and Fixture
• Motor Vehicles

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.49.07
UK Pound	1	Rs.77.42
Euro	1	Rs.67.73

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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--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.