MIRA INFORM REPORT

Report Date :

10.09.2011

IDENTIFICATION DETAILS

Name :	ATC TIRES PRIVATE LIMITED (w.e.f. 26.03.2008)
Formerly Known As :	NM TYRES PRIVATE LIMITED
Registered Office :	105, Creative Industrial Estate, 72, N.M. Joshi Marg, Mumbai – 400011, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.07.2007
Com. Reg. No.:	11-172456
Paid up Capital :	Rs.132.876 Millions
CIN No.: [Company Identification No.]	U25111MH2007PTC172456
TAN No.: [Tax Deduction & Collection Account No.]	MUMN15214D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Off - Highway Tires
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 6000000
Status :	Recently commenced business
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Though the company was incorporated in the year July 2007, the company started its production activities in April, 2010. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution, initially.

NOTES:

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

INFORMATION PARTED BY

Name :	Mr. Damodar
Designation :	Company Secretary
Contact No.:	91-22-61241413
Date :	08.09.2011

LOCATIONS

Registered Office :	105, Creative Industrial Estate, 72, N.M. Joshi Marg, Mumbai – 400011, Maharashtra, India
Tel No.:	91-22-61241400/ 25838451
Fax No.:	91-22-61242444/ 2583 8456
E-Mail :	admin@alliancetire.net drathi@atgtire.com
Website :	www.alliance-tire-group.com
Location :	Owned
Factory :	Plot No. A-39, Road No. 11, Wagle Industrial Estate, MIDC, Thane – 400604, Maharashtra, India
Tel. No.:	91-22-25838451-55
Fax No.:	91-22-25838456
Factory :	Plot No. A2, Sipcot Industrial Growth Centre, Gangaikondan, Tirunelveli – 627352, Tamilnadu, India

DIRECTORS

AS ON 31.03.2010

Name :

Mr. Ashokkumar Purushottamdas Mahansaria

Designation :

Managing Director

Address :

B-202, Anand, Tirupati Apartment, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

12.12.1951

Date of Appointment :

29.08.2007

DIN No.:

00090785

Other Directorships :

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	U51209MH1982PTC027109	Yogesh Agencies And Investments Private Limited	Director	10-05-82	10-05-82	Active	NO
2	U51900MH1985PTC035081	Acumen Trading and Investments Private Limited	Director	04-06-93	04-06-93	Active	NO
3	U17120MH1978PTC020364	Sujata Textile Mills Private Limited	Director	01-08-06	01-08-06	Active	NO
4	U25111MH2007PTC172456	ATC Tires Private Limited	Managing director	29-08-07	29-08-07	Active	NO

Name :

Mr. Yogesh Ashokkumar Mahansaria

Designation :

Director

Address :

B-202, Anand, Tirupati Apartment, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

13.09.1975

Date of Appointment :

29.08.2007

DIN No.:

00090323

Other Directorships :

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	U51900MH1985PTC035081	Acumen Trading And Investments Private Limited	Director	08-07-06	08-07-06	Active	NO
2	U51209MH1982PTC027109	Yogesh Agencies And Investments Private Limited	Director	08-07-06	08-07-06	Active	NO
3	U17120MH1978PTC020364	Sujata Textile Mills Private Limited	Director	01-08-06	01-08-06	Active	NO
4	U25111MH2007PTC172456	ATC Tires Private Limited	Director	29-08-07	29-08-07	Active	NO

Name :

Mr. Niten Malhan

Designation :

Director

Address :

112/122, A Wing, Sarnath Building, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

02.08.1971

Date of Appointment :

29.08.2007

DIN No.:

00614624

Other Directorships :

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	U74899DL1992PTC049022	Lemon Tree Hotels Private Limited	Director	29-09-06	26-07-06	-	Active	NO
2	U55101DL2005PTC138835	Spank Hotels Private Limited	Director	29-09-06	26-07-06	-	Active	NO
3	U55101DL2002PTC118179	Citrus Hotels Private Limited	Director	29-09-06	26-07-06	28-08-09	Active	NO
4	U10102DL1997PLC085837	ACB (India) Limited	Nominee director	30-11-06	30-11-06	-	Active	NO
5	U27102CT2003PTC015761	Aryan Ispat and Power Private Limited	Nominee director	30-11-06	30-11-06	10-05-11	Active	NO
6	U40102DL2001PTC134230	Aryan Energy Private Limited	Nominee director	30-11-06	30-11-06	10-05-11	Active	NO
7	U10200DL2002PTC115155	Kartikay Coal Washeries Private Limited	Nominee director	30-11-06	30-11-06	10-05-11	Active	NO
8	L17110GJ1931PLC000454	Sintex Industries Limited	Director	30-11-06	30-11-06	30-11-07	Active	NO
9	U29199DL2003PTC122193	Aryan Clean Coal Technologies Private Limited.	Nominee director	30-11-06	30-11-06	10-05-11	Active	NO
10	U22210GJ1981PTC047207	Writers and Publishers Private Limited	Nominee director	06-12-06	06-12-06	29-11-07	Active	NO
11	L22210GJ1995PLC047208	DB Corp Limited (Tr. Co. From)	Nominee director	12-12-06	12-12-06	-	Active	NO
12	U74140MH2004PTC145467	Warburg Pincus India Private Limited	Managing director	01-01-07	01-01-07	-	Active	NO
13	U55101DL2006PTC144533	Meringue Hotels Private Limited	Director	26-09-07	26-03-07	28-08-09	Active	NO
14	U10100AP1996PLC054238	Spectrum Coal and Power Limited	Nominee director	13-04-07	13-04-07	10-05-11	Active	NO
15	U25111MH2007PTC172456	ATC Tires Private Limited	Director	29-08-07	29-08-07	-	Active	NO
16	L74899DL1988PLC033314	Punj-Lloyd Limited	Director	28-07-08	31-10-07	-	Active	NO
17	L31900DL1983PLC016304	Havells India Limited	Director	11-07-08	26-11-07	-	Active	NO
18	U40102DL2008PTC177939	Aryan Chhattisgarh Power Generation Private Limited	Director	09-05-08	09-05-08	10-05-11	Active	NO
19	U40102DL2008PTC177940	Aryan M. P. Power Generation Private Limited	Director	09-05-08	09-05-08	10-05-11	Active	NO
20	U73100MH2000PLC192798	Metropolis Healthcare Limited	Nominee director	28-09-10	02-07-10	-	Active	NO
21	U40101DL2010PLC206025	ACB (India) Power Limited	Director	20-07-10	20-07-10	10-05-11	Active	NO
22	U40100MP2010PTC023554	Diligent Power Private Limited	Nominee director	26-04-11	26-04-11	-	Active	NO
23	U40100MP2008PLC020903	DB Power (Madhya Pradesh) Limited	Nominee director	26-04-11	26-04-11	-	Active	NO
24	U40109MP2006PLC019008	D B Power Limited	Nominee director	26-04-11	26-04-11	-	Active	NO

Name :

Mr. Vishal Kashyap Mahadevia

Designation :

Director

Address :

81, landmarkCarmichael Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

19.12.1972

Date of Appointment :

29.08.2007

DIN No.:

01035771

Other Directorships :

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	U51900MH1997PTC112119	Radhakrishna Foodland Carriers Private Limited	Director	18-09-07	22-11-06	12-01-09	Active	NO
2	U51900MH1996PTC096128	Foodland Retail Solutions Private Limited	Director	18-09-07	22-11-06	12-01-09	Active	NO
3	U51900MH1987PTC044894	Radhakrishna Foodland Private Limited	Director	18-09-07	22-11-06	12-01-09	Active	NO
4	U74210MH1999PTC123202	Arksoft Enterprise Private Limited	Director	18-09-07	22-11-06	12-01-09	Active	NO
5	U45209AP2001PLC037861	Gangavaram Port Limited	Director	30-07-07	30-06-07	-	Active	NO
6	U25111MH2007PTC172456	ATC Tires Private Limited	Director	29-08-07	29-08-07	-	Active	NO
7	U74140MH2004PTC145467	Warburg Pincus India Private Limited	Managing director	01-01-09	01-01-09	-	Active	NO
8	U15428WB1935PLC008245	IMC Limited	Nominee director	11-10-10	11-10-10	-	Active	NO
9	U63090MH1997PLC108197	Continental Warehousing Corporation (Nhava Seva) Limited	Nominee director	11-04-11	11-04-11	-	Active	NO

Name :

Mr. Gajendra Singh Kushwaha

Designation :

Director

Address :

Flat No. F-07, Adura Arulagem Apartments, Palayamkottai, Tirunelveli – 627002, Tamilnadu, India

Date of Birth/Age :

05.07.1953

Date of Appointment :

02.09.2009

DIN No.:

02772542

Other Directorships :

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	U25111MH2007PTC172456	ATC Tires Private Limited	Whole-time director	29-09-09	02-09-09	Active	NO

Name :

Mr. Damodar Rathi

Designation :

Director

Address :

C-210, Axita Co-operative Housing Society Limited, RNP Park, Jessal Park Road, Bhayender, Thane - 401105, Maharashtra, India

Date of Birth/Age :

03.01.1989

Date of Appointment :

11.12.2007

Name :

Mr. T. Kannan

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Damodar
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Turgco Limited	13287595
ATC Secretaries Limited	1
Total	13287596

AS ON 31.03.2010

Category	Percentage
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 Off - Highway Tires

Products :

Particulars	ITC Code
Tyres	4011
Tubes	4012
Flaps	4013

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Tyres	Nos.	--	190750

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

200 (Approximately)

Bankers :

· Axis Bank Limited

Central Office, Capital Market Division, Maker Towers, F Wing, 11^th Floor, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India

· Axis Bank Limited

Dhiraj Baugh, LBS Marg, Near Hariniwas Circle, Thane (West) – 400602, Maharashtra, India

Facilities:

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Banks:
Term Loan [Including interests accrued and due Rs.8.352 Millions] (March 31, 2009 Rs.1.260 Millions)	1110.538	341.460
i. Primary security first charge on all movable and immovable assets, both present and future, including land and first charge on all intangible assets including but not limited to the goodwill, undertaking, uncalled Capital and intellectual property rights of the company and second charge on all the current assets, both present and future. ii. Collateral Security: Pledge of 74% shareholding held by WP Holdings II BV, Netherlands in the share capital of Turgco Limited, holding company and pledge of 74% shareholding held by turgco limited in the share capital of the company.
Working Capital Loans	296.142	--
i. Primary security first pari passu charge on all existing and future current assets except balance kept in no lien account and mutual fund units with the company that are purchased out of equity brought for capital expenditure. ii. Collateral Security: Second pari passu charge on all existing and future fixed assets
Total	1406.680	341.460

Banking Relations : :

--

Auditors :

Name :

Price Waterhouse

Chartered Accountant

Address :

252, Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai – 400028, Maharashtra, India

Pan No.:

AAFFP3698A

Ultimate Holding Company :

· Warburg Pincus LLC

Holding Company :

· Turgco Limited, Cyprus

Fellow Subsidiary Company :

· Alliance Tire Company (1992) Limited, Israel

· Alliance Tire American Inc.

· Alliance Tire Europe BV

· Alliance Marketing Israel Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13287596	Equity Share	Rs.10/- Each	Rs.132.876 Millions

NOTE:

Of the above

1. 13,287,595 Equity shares of Rs.10/- each are held by Turgo Limited, Cyprus, the Holding Company.

2. 1 Equity Share is held be ATC Secretaries Limited, Cyprus.

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		132.876	132.876	93.684
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1416.447	1402.481	842.736
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1549.323	1535.357	936.420
LOAN FUNDS
1] Secured Loans		1406.680	341.460	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1406.680	341.460	0.000
DEFERRED TAX LIABILITIES		25.403	0.216	0.000
TOTAL		2981.406	1877.033	936.420
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1761.012	76.865	7.453
Capital work-in-progress		348.132	892.446	138.640
INVESTMENT		330.734	769.797	740.859
DEFERREX TAX ASSETS		0.000	0.000	0.114
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	561.923	0.000	0.000
	Sundry Debtors	183.693	15.130	17.740
	Cash & Bank Balances	11.390	63.180	11.523
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	44.184	16.225	3.676
Total Current Assets		801.190	94.535	32.939
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	234.211	33.353	6.043
	Other Current Liabilities	15.599	3.270	1.653
	Provisions	9.852	5.061	4.343
Total Current Liabilities		259.662	41.684	12.039
Net Current Assets		541.528	52.851	20.900
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
Incidental Expenses Pending Capitalization Allocation		0.000	85.074	28.454
TOTAL		2981.406	1877.033	936.420

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	251.706	0.000	0.000
		Management and Marketing Consultancy Income	68.922	52.937	17.671
		Other Income	90.870	5.154	0.293
		TOTAL (A)	411.498	58.091	17.964
Less	EXPENSES
		Cost of Materials	93.241	0.000	0.000
		Employee Costs	77.635	33.250	10.969
		Operating and other expenses	102.095	7.693	4.835
		TOTAL (B)	272.971	40.943	15.804
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		138.527	17.148	2.160
Less	FINANCIAL EXPENSES (D)		46.855	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		91.672	17.148	2.160
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.910	0.465	0.054
	PROFIT BEFORE TAX (E-F) (G)		41.762	16.683	2.106
Less	TAX (H)		27.795	5.631	1.621
	PROFIT AFTER TAX (G-H) (I)		13.967	11.052	0.485
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11.536	0.484	0.000
	BALANCE CARRIED TO THE B/S		25.503	11.536	0.485
	EARNINGS IN FOREIGN CURRENCY
		Management Consultancy Income	48.540	39.461	17.671
		Marketing Consultancy Income	20.382	13.477	0.000
	TOTAL EARNINGS		68.922	52.938	17.671
	IMPORTS
		Raw Materials	564.861	0.000	NA
		Stores & Spares	2.128	0.000	NA
		Capital Goods	369.946	215.299	NA
	TOTAL IMPORTS		936.935	215.299	NA
	Earnings Per Share (Rs.)		1.05	1.01	0.25

Particulars	31.03.2011
Sales Turnover (Approximately)	2750.000

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.39	19.02	2.69
Net Profit Margin (PBT/Sales)	(%)	16.59	31.51	11.91
Return on Total Assets (PBT/Total Assets}	(%)	1.63	9.73	5.21
Return on Investment (ROI) (PBT/Networth)		0.03	0.01	0.00
Debt Equity Ratio (Total Liability/Networth)		1.08	0.25	0.01
Current Ratio (Current Asset/Current Liability)		3.09	20.27	2.74

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Particulars	31.03.2010	31.03.2010	31.03.2009
	(RS. IN MILLIONS)
Sundry Creditors
- Total Outstanding Dues of Micro and Small enterprises	0.647	0.550	--
- Total Outstanding Dues of Creditors other than Micro and Small enterprises	233.564	32.803	6.043
Total	234.211	33.353	6.043

NOTE

The registered office of the company has been shifted from 5^th Floor, Peninsula Chambers, Peninsula Corp Park, G K Marg, Lower Parel, Mumbai – 400013, Maharashtra, India to the present address w.e.f 17.09.2007

PROJECTS:

The Company has largely completed the first phase of the Project of setting up the “Off- Highway Tyre” (OHT) manufacturing facility at SIPCOT Industrial Park SEZ, in Village Gangaikondan, District Tirunelveli, Tamilnadu. The commercial Production commenced from December 1, 2009.

The Company has now commenced the Second phase of the Project and has already placed orders for the Equipments. The equipments have started arriving at the Plant and the Company expects to complete the installation and commissioning of the Project by May 2011.

OPERATIONS:

The Company operates in the OHT segment. The Company also provides Consultancy Services to Alliance Tires Israel.

During the four months period of commercial operations from December 2009 to March 2010, the Revenue was Rs.251.700 Millions and during the year, the Consultancy income was Rs.68.900 Millions as compared to Rs.52.900 Millions in the previous year.

The Company earned a Profit after tax of Rs.14.000 Millions during the year compared to Rs.11.000 Millions during the previous year.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10136380
Corporate identity number of the company	U25111MH2007PTC172456
Name of the company	ATC TIRES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	105, Creative Industrial Estate, 72, N.M. Joshi Marg, Mumbai - 400092 Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	CIN : L65110GJ1993PLC020769 Axis Bank Limited Dhiraj Baugh, LBS Marg, Near Hariniwas Circle, Thane (West) – 400602, Maharashtra, India E-mail : kulkarni.makarand@axisbank.com
Nature of description of the instrument creating or modifying the charge	No instrument was executed but a mortgage was created by deposit of title deeds with Axis Bank Limited, in its capacity as Security Trustee for the facilities sanctioned to the company aggregating Rs.2564.400 Millions by Axis Bank Limited, Corporation bank, Export Import Bank of India and Karur Vysya Bank.
Date of instrument Creating the charge	24.11.2009
Amount secured by the charge	Rs.3564.400 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 11.75% (Floating) per annum payable monthly Terms of Repayment Term Loan : Loan shall be repayable in 24 unequal quarterly installments with first repayment commencing from June 30, 2011 and last installment on March 31, 2017 Working Capital Loan : On Demand/One Year Margin : Term Loan : 39.09% Working Capital : 25% Extent and Operation of the charge See Attachment
Short particulars of the property charged	Leasehold Land admeasuring 115 acres situate at Plot No. A-2. in SIPCOT’S Industrial Growth Center within the village limits, Tiruneveli, Gangaikondan in the state of Tamilnadu
Date of Last Modification	23.11.2009
Particulars of the present modification	An equitable mortgage on second pari passu charge basis for the working Capital facilities availed by the Company aggregating Rs.1000.000 Millions from Axis Bank, Export Import Bank of India and The Karur Vysya Bank Limited

FIXED ASSETS:

· Leasehold Land

· Buildings

· Plant and Machinery

· Electrical Installation

· Leasehold Improvements

· Computer Hardware

· Computer Software

· Office Equipments

· Furniture and Fixtures

· 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.46.18
UK Pound	1	Rs.73.65
Euro	1	Rs.64.95

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		27

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.