MIRA INFORM REPORT

Report Date :

25.10.2011

IDENTIFICATION DETAILS

Name :	SKODA AUTO INDIA PRIVATE LIMITED
Registered Office :	Plot No.A-1/1, Shendra, Five Star Industrial Area, MIDC, Aurangabad – 431 201, Maharashtra
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	23.12.1999
Com. Reg. No.:	11-123254
Capital Investment / Paid-up Capital :	Rs.2352.372 millions
CIN No.: [Company Identification No.]	U34100MH1999PTC123254
TAN No.: [Tax Deduction & Collection Account No.]	NSKS05815F
PAN No.: [Permanent Account No.]	AAECS3749M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Automobiles
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 7100000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of Volkswagen Group, a well established and a reputed group worldwide. Financial position of the company is moderate. However, 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 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.

INFORMATION DECLINED BY

MANAGEMENT NON CO-OPERATIVE

LOCATIONS

Registered Office :	Plot No.A-1/1, Shendra, Five Star Industrial Area, MIDC, Aurangabad – 431 201, Maharashtra, India
Tel. No.:	91-240-6631111 / 222 / 333 / 6631113
Fax No.:	91-240-6631299 / 6631199
E-Mail :	feedback@skoda_auto.co.in trivikram.guda@skoda-auto.co.in rahullohade@rediffmail.com
Website :	http://www.skoda_auto.co.in http:// www.skoda-auto.co.in
Factory :	E-76, MIDC Waluj, Aurangabad – 431 136, Maharashtra, India

DIRECTORS

As on 06.04.2011

Name :	Mr. Gruenberg Oliver
Designation :	Managing Director
Address :	Wolfsburg, Germany 38440
Date of Birth/Age :	31.07.1970
Qualification :	Degree in Physics and Engineering
Experience :	15 Years
Date of Appointment :	06.04.2011
DIN No.:	03134224

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34100MH1999PTC123254	Skoda Auto India Private Limited	Managing director	06-04-11	02-08-10	Active	NO

Name :	Mr. Sanjay Mundade
Designation :	Director
Address :	11, Gunjan Sankul, Vaidya Nagar, Dwaraka, Nashik, Maharashtra, India
Date of Birth/Age :	13.06.1972
Qualification :	ICWAI, B.Com
Experience :	16 Years
Date of Appointment :	25.05.2009
DIN No.:	02659176

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34100MH1999PTC123254	Skoda Auto India Private Limited	Director	03-03-10	25-05-09	Active	NO

Name :	Mr. Makarand Deshpande
Designation :	Director
Address :	P. No. 36, Sahyog Nagar, Garkheda Osmanpura, Aurangabad, Maharashtra, India
Date of Birth/Age :	30.07.1963
Qualification :	MLS Mumbai / MSc Maths / Aurangabad / BSc Aurangabad
Experience :	22 Years
Date of Appointment :	25.05.2009
DIN No.:	02684393

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34100MH1999PTC123254	Skoda Auto India Private Limited	Director	03-03-10	25-05-09	Active	NO

Name :	Mr. Thomas Kuehl
Designation :	Director
Address :	Wolfsburg, Germany
Date of Birth/Age :	27.02.1965
Qualification :	Degree in Economics, Specialisation in OD and Marketing
Experience :	17 Years
Date of Appointment :	27.02.2007
DIN No.:	01938635

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34100MH1999PTC123254	Skoda Auto India Private Limited	Director	28-02-08	01-11-07	Active	NO

Name :	Winfried Ludger Krause
Designation :	Director
Address :	Stadt, Braunschweig, Germany 38110
Date of Birth/Age :	14.01.1962
Date of Appointment :	06.04.2011
DIN No.:	03052438

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34100MH1999PTC123254	Skoda Auto India Private Limited	Director	06-04-11	19-05-10	Active	NO

Name :	Juergen Heinz Heinrich Stackmann
Designation :	Director
Address :	Prague 11000
Date of Birth/Age :	12.09.1961
Date of Appointment :	06.04.2011
DIN No.:	03289105

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34100MH1999PTC123254	Skoda Auto India Private Limited	Director	06-04-11	16-11-10	Active	NO

Name :	Leszek Plonka
Designation :	Director
Address :	Vaclava Klementa 869, MLADA Boleslav 29360
Date of Birth/Age :	28.06.1953
Date of Appointment :	06.04.2011
DIN No.:	03301996

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34100MH1999PTC123254	Skoda Auto India Private Limited	Director	06-04-11	16-11-10	Active	NO

KEY EXECUTIVES

Name :	Mr. Trivikram Guda
Designation :	Company secretary
Address :	16-C/1, N1, Cidco Town Center, Aurangabad – 431 003, Maharashtra, India
Date of Birth/Age :	18.05.1981
Date of Appointment :	04.04.2006
PAN No.:	AIZPG7906Q
Name :	Mr. Shinde
Designation :	Admin Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 06.04.2011

Names of Equity Shareholders	No. of Shares
Skoda Auto a.s., Czech Republic	179037165
Skoda Auto Deutschland G.m.b.H., Germany	1
Total	179037166

Names of Preference Shareholders	No. of Shares
Skoda Auto a.s., Czech Republic	56200000
Total	56200000

As on 06.04.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Automobiles

Products :

Item Code No. (ITC Code)	Product Description
87.03	Motor Car

PRODUCTION STATUS (As on 31.12.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Motor Cars	Nos.	NA	41180	18793

Notes

· Installed Capacity, as certified by the Management and accepted by the auditors without verification, being a technical matter.

· All capacities are set up after July 25, 1991 and no Licenses are required in terms of Notification No. 477(E) under the Industries (Development and Regulation) Act, 1951. A declaration to this effect has been mentioned in the Industrial Entrepreneur’s Memorandum filed in this regard.

GENERAL INFORMATION

No. of Employees :

1000 (Approximately)

Bankers :

· The Hong Kong and Shanghai Bank Corporation Limited

· CITI Bank, Fort Branch

· HSBC Bank, Fort Branch

· Bank of India, M G Road, Mumbai – 400023, Maharashtra, India

· Punjab National Bank

· State Bank of India, Ajmal Khan Road, Bank Street, Karolbagh, Delhi – 110005, India

Facilities :

Unsecured Loans	As on 31.12.2010 Rs. in millions	As on 31.12.2009 Rs. in millions
Deferred Sales Tax Liability (Repayable in seven equal annual installments for every completed year after 18 years from end of tax year of sale. First Installment is repayble on April 2026)	4553.796	2933.984
Total	4553.796	2933.984

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400 028, Maharashtra, India
Ultimate Holding Company :	Porsche Automobil Holding SE
Intermediate Holding Company :	Volkswagen AG, Germany (VWAG)
Holding Company :	Skoda Auto a.s., Czech Republic (Skoda a.s)
Fellow Subsidiary Companies (Enterprises in the Group with whom transactions have taken place during the year)	· Audi AG, Germany (Audi AG) · Volkswagen de Mexico S.A. de C.V., Mexico (VW Mexico) · Volkswagen Group Sales India Private Limited (VWGSIPL) · Volkswagen Group Sales India Private Limited (VWGSIPL)

CAPITAL STRUCTURE

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
190000000	Equity Shares	Rs.10/- each	Rs.1900.000 millions
60000000	7% Non-Convertible, Non-Cumulative, Non-Participative Preference Shares	Rs.10/- each	Rs.600.000 millions
	Total		Rs.2500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
179037166	Equity Shares	Rs.10/- each	Rs.1790.372 millions
56200000	7% Non-Convertible, Non-Cumulative, Non-Participative Preference Shares	Rs.10/- each	Rs.562.000 millions
	Total		Rs.2352.372 millions

Notes

· 179037166 Equity Shares of Rs.10 each, fully paid-up, are held by Skoda Auto a.s., Czech Republic, the Holding Company, a subsidiary of Volkswagen AG and its nominee.

· 56200000 7% Non-Convertible, Non-Cumulative, Non-Participative Preference Shares of Rs.10 each, fully paid-up, were allotted, at par, under the External Commercial Borrowing Scheme of the Reserve Bank of India (Exchange Control Department) to Skoda Auto a.s., Czech Republic, pursuant to a resolution passed by the Board of Directors at their meeting held on December 20, 2007.

The Company received EUR 10 million as proceeds of this issue.

Preference Shares will be redeemed, at par, at any time after three years and before the expiry of twenty years from the date of allotment.

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		2352.372	2352.372	2352.372
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	263.012
4] (Accumulated Losses)		(575.601)	(441.215)	0.000
NETWORTH		1776.771	1911.157	2615.384
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		4553.796	2933.984	4129.569
TOTAL BORROWING		4553.796	2933.984	4129.569
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6330.567	4845.141	6744.953
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2007.844	3023.390	3477.070
Capital work-in-progress		342.067	636.677	742.636
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6102.171	4615.667	6874.768
	Sundry Debtors	2956.955	765.065	531.983
	Cash & Bank Balances	198.881	1273.841	190.804
	Other Current Assets	4.666	0.250	187.393
	Loans & Advances	4575.655	1198.898	1411.041
Total Current Assets		13838.328	7853.721	9195.989
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7589.206	4838.511	4905.775
	Other Current Liabilities	659.882	566.248	870.321
	Provisions	1608.584	1263.888	894.646
Total Current Liabilities		9857.672	6668.647	6670.742
Net Current Assets		3980.656	1185.074	2525.247
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6330.567	4845.141	6744.953

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Net Sales	32750.608	19073.485	15111.562
		Other Income		1884.033	767.483
		TOTAL (A)	32750.608	20957.518	15879.045
Less	EXPENSES
		Consumption of Raw Materials	31194.421	12728.179	15707.797
		Cost of Traded Goods		3236.234	681.373
		(Accretion)/ Decretion to Inventories – Finished / Semi-Finished		2359.689	(2329.609)
		Manufacturing and Other Expenses		1516.924	815.504
		Sales and Distribution Expenses		1094.696	1071.216
		Impairment Loss	882.984	99.324	0.000
		TOTAL (B)	32077.405	21035.046	15946.281
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		673.203	(77.528)	(67.236)
Less	INTEREST (D)		2.867	29.415	18.757
	PROFIT/(LOSS)BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		670.336	(106.943)	(85.993)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		629.722	596.084	381.176
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		40.614	(703.027)	(467.169)
Less	TAX (H)		175.000	1.200	156.329
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(134.386)	(704.227)	(623.498)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	263.012	886.510
	BALANCE CARRIED TO THE B/S		NA	(441.215)	263.012
	EARNINGS IN FOREIGN CURRENCY
		Financial Assistance from Sokda Auto a.s.	1587.468	0.000	0.000
		Reimbursement of Marketing Support	101.473	0.000	0.000
		Interest Income	0.000	0.003	16.963
		Miscellaneous Reimbursement	16.521	0.000	0.000
		Others	0.000	0.000	0.137
	TOTAL EARNINGS		1705.462	0.003	17.100
	IMPORTS
		Raw Materials	19109.875	12047.292	15022.004
		Traded Spares	1356.626	1020.578	664.026
		Capital Goods	117.379	41.099	1733.183
	TOTAL IMPORTS		20583.880	13108.969	17419.213
	Earnings / (Loss) Per Share (Rs.)		(0.75)	(3.93)	(3.48)

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	(0.41)	(3.36)	(3.93)
Net Profit Margin (PBT/Sales)	(%)	NA	(3.69)	(3.09)
Return on Total Assets (PBT/Total Assets}	(%)	0.26	(6.46)	(3.69)
Return on Investment (ROI) (PBT/Networth)		0.02	(0.37)	(0.18)
Debt Equity Ratio (Total Liability/Networth)		8.11	5.02	4.13
Current Ratio (Current Asset/Current Liability)		1.40	1.18	1.38

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.12.2010 Rs. in millions	As on 31.12.2009 Rs. in millions	As on 31.12.2008 Rs. in millions
Total Outstanding dues of Micro Enterprises and Small Enterprises	3.451	2.303	4905.775
Total Outstanding dues of Creditors other than Micro Enterprises and Small Enterprises	7585.755	4836.208
Total	7589.206	4838.511	4905.775

OVERVIEW OF BUSINESS AND OPERATIONS

For company the year 2010 has begun the New Year in style by winning seven coveted awards of the auto industry. To name a few, subject has been honoured with two prestigious 'Golden Steering Wheel Awards 2010'. two 'ET Zigwheels Awards 2009' and one award each from 'The Business Standard Motoring Awards 2010', 'NDTV Car and Bike Awards 2010' and 'Overdrive - CNBC TV18 Awards 2010'.

Subject rolled out the 25000th Fabia that was built in lndia from Volkswagen Group's facility located at Chakan, Pune. The event was even more significant with the presence of Prof. Dr. h.c. Winfried Vahland, Chairman of Board of Directors of SkodaAuto a.s. In his first visit to lndia as the new Chairman of Board, Dr. Vahland's reaffirmed India's status as one of the most important markets in subject's global growth story. The visit also re-iterates the company's commitment to dig deep into this market and realize its full potential. Speaking on India's potential Prof. Dr. Vahland, Chairman of Board of Directors of Skoda Auto as. Said "India has contributed significantly to subject's growth as a global brand. The products have captured the imagination of lndian consumers for years now. They stand by the commitment to the Indian consumers and promise to continuously offer products which will suit their growing lifestyle. Indian market has been earmarked as an integral part of the global growth strategy. They plan to achieve this aggressively by extending product portfolio to get to new segments resulting in profitable growth."

On 26^th November 2010 Subject, had rolled out the 10000 1st car from its plant at Aurangabad. The occasion was graced by H E Mr Miloslav Stasek, the Ambassador of the Czech Republic in lndia, and Mr Juergen Stackmann, the Board Member for Sales and Marketing at SkodaAuto a.s. and Chairman of subject.

Marking the occasion, the Ambassador of the Czech Republic in lndia, H E Mr Miloslav Stasek said, "This, the biggest investment in lndia by a Czech company, Subject has achieved incredible growth. The world class products provided by subject, offering high quality with a human touch, are the strongest pillar of its success."

Also Mr Stackmann, the Board Member for Sales and Marketing at SkodaAuto as. and Chairman of subject, emphasised, "lndia, as a very important future market, was entered by Skoda ten years ago in a great spirit of entrepreneurship. This wouldn't have been possible without the support of the employees, the Indian government, the suppliers, the business partners and, especially, the valuable customers. Over the past decade, subject has reinvented itself as a strong, sensitive and, more importantly, a clever player in the automobile sector. The factory at Aurangabad is the strength and will play an even more important role in the future, as their plans for expansion in the Indian market are ambitious. They at subject are very proud of their current achievements and want to take this opportunity to congratulate all their stakeholders."

In their constant endeavor to bring newness in terms of design, comfort and technology, Subject had launched the new Skoda Fabia 1.6 MPI, 1.2 TDI CR and 1.2 MPI and the Superb 1.8 TSI Manual transmission. The all new Skoda Fabia offers a complete new package boosted with innovative features and engine technology. It caters to larger group of people who want a premium hatchback, with the best of technology, safety and practicality in their car, yet accessible price range with an improved value for money proposition. The best in class Superb 1.8 TSI 6-speed manual gearbox is equipped with the 'Intelligent Gear Change Indicator' takes the driving conditions into consideration and recommends the most suitable gear level to the driver on the Multifunction Display. The response from our customers as well as auto critics has bequeathed the all New Superb with segment leader position and has surpassed many expectations.

The Board of Management once again expresses its commitment of further growth and workforce development to tackle the challenges in the near future. Subject kick starts 2011 with 51 % sales growth for the month of January, 2011. Subject's total sales for January, 2011 stood at 2825 units against 1881 units in January 2010. The credit for the outstanding performance goes to the newly launched Skoda Yeti and the new Skoda Fabia. The Yeti, launched in November 2010 had created tremendous excitement amongst auto enthusiasts. The Board is delighted with the overall response to Yeti, which has won many prestigious awards, so far the most awarded SUV in the country.

AWARDS AND ACHIEVEMENTS

Subject are delighted and humbled by the following awards being bestowed on our vehicles in lndia

2011 - Skoda Yeti

· Bloomberg UTV Autocar Awards 201 1 - 4x4 of the Year

· Economic Times Zigwheels - SUV of the Year

· Economics Times Zigwheels – Design of the Year

· CNBC Overdrive - SUVIUV of the Year

· BBC Top Gear - Car of the Year

· Carlndia – MUV/Crossover of the Year

· NDTV Car and Bike award - Compact SUV of the Year

· NDTV Car and Bike award – Best Integrated Marketing Campaign

· UTVi - Bloomberg Autocar – SUV of the year

· CNBC TV18 Overdrive - SUV of the Year

2010 - Skoda Laura and Skoda Superb

The Golden Steering Wheel Awards - 2010 by AutoBild India

• Best Variant of the Year – Skoda Laura
• Best Sedan of the Year – Skoda Superb

Overdrive - CNBC TV18 Awards – 2010

• Midsize Car of the Year – Skoda Laura

BS Motoring Executive Car of The Year - 2010 Skoda Superb

Bloomberg UN-Autocar Awards -2010

• Best Variant of the Year - Skoda Laura

NDTV Profit - Car lndia and Bike lndia Awards - 2010

• Entry Premium Car of the Year - Skoda Superb

Skoda Superb - Car of the Year - BBC TopGear Awards 2010

Subject, Aurangabad has won "Silver Award" in automobile sector from "Greentech Foundation" for its distinguished and consistent efforts in the area of "Environmental Management".

This award was presented from the hands of Mr. Rakesh Shrivastava, IAS Joint Secretary, Ministry of Shipping, Govt. of lndia and Mr. Kamleshwar Sharan - President of "Greentech Foundation" on 12^th December 2010.

CONTINGENT LIABILITIES

Particulars	As on 31.12.2010 Rs. in millions	As on 31.12.2009 Rs. in millions
Disputes against the Company not acknowledged as debts	227.811	186.777	Pertains to litigations filed against the Company by end customers which are pending with various authorities viz. National Consumers Disputes Redressal Commission, Consumers’ Disputes Forums and Industrial Court (Aurangabad). The Company has been advised by their Legal Counsel that these cases are likely to be decided in the favour of the Company.
Demands raised by tax authorities against which the Company has preferred appeals: - Direct Taxes - Indirect Taxes	88.795 2428.922	287.877 2299.200	Pertains to disputes with the Income Tax, Central Excise and Customs Authorities. The Company is in appeal at various appellate levels.
Demands raised by other authorities against which the Company has preferred appeals	--	5.785	Pertains to disputes with Gram Panchayat pending at Ministry of Rural Development, Mantralaya, Mumbai
Others	2.500	7.200	Pertains to employees related Matters
Total	2748.028	2786.839

FIXED ASSETS

Intangible Assets

· Technical Know-how Fee

· Computer Software

Tangible Assets

· Leasehold Land

· Office Building

· Factory Building

· Residential Building

· Plant and Machinery

· Tools

· Computers

· Furniture and Fixtures

· Office Equipment

· 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 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.49.87
UK Pound	1	Rs.79.73
Euro	1	Rs.69.53

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--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	NO
--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		47

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.