MIRA INFORM REPORT

Report Date :

02.04.2012

IDENTIFICATION DETAILS

Name :	SERVOMAX INDIA LIMITED (w.e.f. 06.01.2005)
Formerly Known As :	SERVO MAX PRECIOUS ELECTRONIC PRIVATE LIMITED
Registered Office :	Plot No. 16, 17 and 18, IDA, Phase II, Cherlapally, Hyderabad – 500051, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.09.2000
Com. Reg. No.:	01-035239
Capital Investment / Paid-up Capital :	Rs.227.400 Millions
CIN No.: [Company Identification No.]	u29309ap2000plc035239
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	manufacturer of Transformers, Voltage stabilizers, Energy Saving Equipment and Isolation Transformers
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 1570000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered 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 :	Plot No. 16, 17 and 18, IDA, Phase II, Cherlapally, Hyderabad – 500051, Andhra Pradesh, India
Tel. No.:	91 - 40 - 2726 0620 / 2726 0621
Fax No.:	91 - 40 – 2726 0580 / 2726 0581
E-Mail :	admin@servomax.net ceo@servomax.net cco@servomax.net ekambareswararao@gmail.com coo@servomax.net mm@servomax.net overseas@servomax.net esd@servomax.net km_servomax@yahoo.com purchase@servomax.net accounts@servomax.net
Website :	http://www.servomax.net
Factory :	Plot No. 38, Electronic Complex, Extn, ECIL Post, Hyderabad – 500 062, Andhra Pradesh, India
Tel. No.:	91-40-27123927/27123279/27143064/27143096
Fax No.:	91-40-27125386
Email:	ceo@servomax.net mm@servomax.net overseas@servomax.net
Branches :	Bangalore Kolkata Chennai Mumbai Coimbatore New Delhi Pune Kolhapur Peenya

DIRECTORS

As on 12.12.2011

Name :

Mr. Venkateswara Rao Avasarala

Designation :

Managing director

Address :

Plot No. 16, Anupuram Colony, ECIL Post, Hyderabad – 500 062, Andhra Pradesh, India

Date of Birth/Age :

20.05.1962

Date of Appointment :

12.09.2000

DIN No.:

00487242

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	U52334AP1996PLC024290	SNIGDHA MARKETING LIMITED	Director	7/06/1996	7/06/1996	26/03/2010	Active	NO
2	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Managing director	1/04/2009	12/09/2000	-	Active	NO
3	U29308AP2008PTC058350	SERVOMAX TRANSFORMERS PRIVATE LIMITED	Director	27/03/2008	27/03/2008	-	Active	NO
4	U74900AP2008PTC061571	FIRST ESCO INDIA PRIVATE LIMITED	Director	24/10/2008	24/10/2008	-	Active	NO
5	U31200AP2008PLC060773	ALTAIR ELECTRONICS LIMITED	Director	22/10/2009	22/10/2009	10/02/2010	Active	NO
6	U45209PN2010PTC138055	SERVOMAX INFRASTRUCTURE PRIVATE LIMITED	Director	22/12/2010	22/12/2010	-	Active	NO
7	U32100AP1997PLC026971	SERWEL ELECTRONICS LIMITED	Director	30/09/2011	25/01/2011	-	Active	NO
8	U31900AP2011PTC074147	SERVOMAX MARKETING PRIVATE LIMITED	Director	28/04/2011	28/04/2011	-	Active	NO
9	U64200DL2011PTC218835	SERVOMAX TELECOM SERVICES PRIVATE LIMITED	Director	9/05/2011	9/05/2011	-	Active	NO

Name :

Mr. Chandra Sekar Reddy Poreddy

Designation :

Whole-time director

Address :

Plot No. 14 Anupuram Colony, ECIL Post, Hyderabad – 500 062, Andhra Pradesh, India

Date of Birth/Age :

01.06.1960

Date of Appointment :

01.02.2006

DIN No.:

00543734

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	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Whole-time director	1/10/2009	1/02/2006	-	Active	NO
2	U32100AP1997PLC026971	SERWEL ELECTRONICS LIMITED	Director	30/04/2007	30/04/2007	1/10/2010	Active	NO
3	U52334AP1996PLC024290	SNIGDHA MARKETING LIMITED	Director	1/05/2007	1/05/2007	26/03/2010	Active	NO
4	U29308AP2008PTC058350	SERVOMAX TRANSFORMERS PRIVATE LIMITED	Director	27/03/2008	27/03/2008	-	Active	NO
5	U45209PN2010PTC138055	SERVOMAX INFRASTRUCTURE PRIVATE LIMITED	Director	22/12/2010	22/12/2010	-	Active	NO
6	U31900AP2011PTC074147	SERVOMAX MARKETING PRIVATE LIMITED	Director	28/04/2011	28/04/2011	-	Active	NO

Name :

Mr. Ashok Gopalrao Kalmankar

Designation :

Director

Address :

H. No. 3-5-874/13/13A, Flat No. 201, Aasra Apartments, Hyderguda, Hyderabad – 500 029, Andhra Pradesh, India

Date of Birth/Age :

02.02.1946

Date of Appointment :

30.12.2009

DIN No.:

01557687

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	L24230AP1993PLC016155	EXENSYS SOFTWARE SOLUTIONS LIMITED	Director	25/09/2007	29/04/2007	31/10/2008	Active	NO
2	U45200AP1997PLC028322	TOTEM INFRASTRUCTURE LIMITED	Director	29/09/2009	15/01/2009	30/11/2011	Active	NO
3	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Director	29/09/2010	30/12/2009	-	Active	NO
4	U93000AP2007PTC056377	SPYN FINANCIAL SERVICES PRIVATE LIMITED	Director	1/04/2010	1/04/2010	-	Active	NO

Name :

Mr. Venkata Chandra Sekhar Ravulapati

Designation :

Whole-time director

Address :

1-9-635, II-E. Aishwarya Apartments, Vidya Nagar, Hyderabad – 500044, Andhra Pradesh, India

Date of Birth/Age :

03.12.1964

Date of Appointment :

30.12.2009

DIN No.:

01871093

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	U21011AP1999PTC032726	TRILLIUM ENGINEERS PRIVATE LIMITED	Whole-time director	21/10/1999	21/10/1999	-	Active	NO
2	U52334AP1996PLC024290	SNIGDHA MARKETING LIMITED	Director	1/04/2007	1/04/2007	30/09/2009	Active	NO
3	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Whole-time director	29/09/2010	30/12/2009	-	Active	NO

Name :

Mr. Sirish Bommakanti Narasimha

Designation :

Director

Address :

6-3-865/11, Imperial, Mannor, F. No. 107, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India

Date of Birth/Age :

13.09.1963

Date of Appointment :

30.12.2009

DIN No.:

02023568

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	U74999AP2007PLC052227	PCH RETAIL LIMITED	Director	4/01/2007	4/01/2007	10/01/2012	Active	NO
2	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Director	29/09/2010	30/12/2009	-	Active	NO

Name :

Mr. Ramaraghavulu Pujari

Designation :

Director

Address :

6-3-1246, Flat No. 204, Marvel Residency, Hyderabad – 500082, Andhra Pradesh, India

Date of Birth/Age :

01.07.1954

Date of Appointment :

02.03.2009

DIN No.:

00018994

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	U45200AP1991PTC013453	ROSHNI DEVELOPERS PRIVATE LIMITED	Director	26/07/2005	26/07/2005	3/07/2007	Active	NO
2	U45200AP2001PLC038175	INDU PROJECTS LIMITED	Whole-time director	27/09/2005	27/09/2005	3/07/2007	Active	NO
3	U45200AP2006PTC048968	INDU TECHZONE PRIVATE LIMITED	Director	1/02/2006	1/02/2006	3/07/2007	Active	NO
4	U00095PN2006PTC022236	INDU CONCEPT INFRA VENTURES PRIVATE LIMITED	Director	28/03/2006	28/03/2006	3/07/2007	Active	NO
5	U70102AP2006PTC049678	INDU FINELANDS PRIVATE LIMITED	Director	31/03/2006	31/03/2006	3/07/2007	Active	NO
6	U45200TN2006PTC085149	INDU NAVAYUGA INFRA PROJECTS PRIVATE LIMITED	Director	4/04/2006	4/04/2006	3/07/2007	Active	NO
7	U45200AP2006PTC049849	INDU ROYAL HOMES PRIVATE LIMITED	Director	13/04/2006	13/04/2006	3/07/2007	Active	NO
8	U45200AP2006PTC049848	INDU EASTERN PROVINCE PROJECTS PRIVATE LIMITED	Director	13/04/2006	13/04/2006	3/07/2007	Active	NO
9	U45200AP1997PLC028322	TOTEM INFRASTRUCTURE LIMITED	Whole-time director	8/12/2008	8/12/2008	31/01/2010	Active	NO
10	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Director	25/09/2009	2/03/2009	-	Active	NO
11	U45200AP2004PLC043015	GKC PROJECTS LIMITED	Director	27/06/2009	27/05/2009	-	Active	NO
12	U74999AP2009PLC064124	TOTEM INTERNATIONAL LIMITED	Director	24/06/2009	24/06/2009	7/09/2009	Active	NO
13	U40106AP2007PTC055617	TF SOLARPOWER PRIVATE LIMITED	Director	31/05/2010	14/04/2010	-	Active	NO
14	U40109AP2008PTC060822	HYPERION GREEN ENERGY INDIA PRIVATE LIMITED	Director	15/09/2010	15/09/2010	-	Active	NO
15	U72200AP2010PTC070850	VELOCITY NETWORKS PRIVATE LIMITED	Director	21/04/2011	21/04/2011	-	Active	NO
16	L25209AP1987PLC007550	RAJ PACKAGING INDUSTRIES LIMITED	Additional director	7/11/2011	7/11/2011	-	Active	NO
17	U92400AP2010PTC071272	CELEBRITY CRICKET LEAGUE PRIVATE LIMITED	Nominee director	30/11/2011	30/11/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 12.12.2011

Names of Shareholders	No. of Equity Shares
A.Venkateswara Rao	7144530
R Narayan Rao	3937
P Chandra Sekar Roddy	147035
A L Anuradha	121660
P Akila	12863
P Hymavathi	35700
P Nikitha	18375
A.R. Prasad	7500
V Satyanarayana	2625
V Santosh Kumar	2625
V Srinivasa Rao	2625
Sharada	2625
A Mohan Rao	2625
A Satya Teja	2625
Manikyamma	15750
Ravi Teja	7875
A Snigdha	7875
Avcndus Capitals Private Limited	68750
Connect Advisory Services Private Limited	58750
Pothuri Pavana Kumara	2000
Ekambareswara Rao	2000
T.S.Krishna Mohan	2000
Nagaraju	2000
R. V.Chandra Sekhar	50000

Names of Shareholders	No. of Preference Shares
A Venkateswara Rao	1499990
Total	1499990

As on 30.12.2011

Names of Allottees	No. of Shares
A. Venkateswara Roa	795000
T. Pradeep	100000
Total	895000

Equity Share Break up (Percentage of Total Equity)

As on 12.12.2011

Category	Percentage
Bodies corporate	1.65
Directors or relatives of Directors	98.34
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :	manufacturer of Transformers, Voltage stabilizers, Energy Saving Equipment and Isolation Transformers
Products :	· Intelligent PMP Unit · Electronic Voltage Stabilizers · Stabilizers · Auto Transformer · Automatic Power Factor · Controller Panel · Linear / Vertical Variac · Distribution Transformer · LT Pannel Boards · Electro Plating Rectifier · Energy Saver

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Actual Production
Power Conditioning equipments	Nos	8708
Power Saving equipments	Nos	80

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of Hyderabad, Moulali Branch, Hyderabad – 500 001, Andhra Pradesh, India

Facilities :

Secured Loans :	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
a) From Banks
Cash Credit Facilities	453.555	242.036
Vehicle Loans	4.582	1.873
b) Other
Vehicle Loans	0.019	0.078
Total	458.156	243.987

Notes:

1. Cash Credit Loan is secured by hypothecation of all movable assets of the company including raw material, finished goods, work-in-process, tools and spares both present and future, book debts and Land and Building situated at Cherlapally, Bangalore and Kakinada. Also secured by personal guarantee of certain Directors and certain personal properties held by the Managing Director and Executive Director

2. Vehicle Loans are secured by hypothecation of the Vehicles

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	1-8-384 and 385, 3^rd Floor, Gowra Grand, S. P. Road, Begumpet, Secunderabad – 500003, Andhra Pradesh, India
Tel. No.:	91-40-40312600
Fax No.:	91-40-40312714
PAN.:	AACCD4805B
Other Entities under the control of Key Management Personnel and their relatives :	· Precious Metal Converters · SLG Electronics · Serwel Electronics Limited · Snigdha Marketing and Services Limited

CAPITAL STRUCTURE

After 12.12.2011

Authorised Capital : Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.236.350 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
1500000	Preference Shares	Rs.100/- each	Rs.150.000 Millions
	TOTAL		Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7740100	Equity Shares	Rs.10/- each	Rs.77.401 Millions
1499990	0.1% Participative Cumulative Compulsory Convertible Preference Shares	Rs.100/- each	Rs.149.999 Millions
	TOTAL		Rs.227.400 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		227.400	227.400	227.400
2] Share Application Money		39.501	0.000	0.000
3] Reserves & Surplus		126.195	65.345	32.980
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		393.096	292.745	260.380
LOAN FUNDS
1] Secured Loans		458.156	243.987	171.639
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		458.156	243.987	171.639
DEFERRED TAX LIABILITIES		4.680	3.042	2.824
TOTAL		855.932	539.774	434.843
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		116.517	60.823	55.177
Capital work-in-progress		1.492	15.233	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	192.507	144.740	111.586
	Sundry Debtors	577.191	314.916	214.602
	Cash & Bank Balances	48.720	28.679	120.366
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	100.394	76.043	18.992
Total Current Assets		918.812	564.378	465.546
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	140.710	52.835
	Other Current Liabilities	29.207	41.605	77.753
	Provisions	10.972	6.220	8.140
Total Current Liabilities		180.889	100.660	85.893
Net Current Assets		737.923	463.718	379.653
MISCELLANEOUS EXPENSES		0.000	0.000	0.013
TOTAL		855.932	539.774	434.843

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1615.917	889.889	518.099
		Other Income	5.632	3.202	0.527
		TOTAL (A)	1621.549	893.091	518.626
Less	EXPENSES
		Cost of Material Consumed	1247.637	724.734	372.955
		Decrease / (Increase) in Stocks	40.313	(63.336)	(30.568)
		Employee Costs	81.228	64.113	38.091
		Manufacturing and Other Expenses	104.780	92.539	68.957
		TOTAL (B)	1473.958	818.050	449.435
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		147.591	75.041	69.191
Less	FINANCIAL EXPENSES (D)		48.984	20.798	15.694
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		98.607	54.243	53.497
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.705	2.931	2.098
	PROFIT BEFORE TAX (E-F) (G)		93.902	51.312	51.399
Less	TAX (H)		32.877	18.772	19.495
	PROFIT AFTER TAX (G-H) (I)		61.025	32.540	31.904
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		64.373	32.008	20.998
	UTILIZED FOR THE ISSUE OF BONUS SHARES		0.000	0.000	(20.878)
Less	APPROPRIATIONS
		Preference Dividend	0.150	0.150	0.014
		Dividend Tax on Proposed Dividend	0.025	0.025	0.002
	BALANCE CARRIED TO THE B/S		125.223	64.373	32.008
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	10.651	10.272	4.935
	TOTAL EARNINGS		10.651	10.272	4.935
	Earnings Per Share (Rs.)
	Basic		7.86	4.18	5.06
	Diluted		6.85	3.66	4.96

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.76	3.64	6.15
Net Profit Margin (PBT/Sales)	(%)	5.81	5.77	9.92
Return on Total Assets (PBT/Total Assets}	(%)	9.07	8.21	9.87
Return on Investment (ROI) (PBT/Networth)		0.24	0.18	0.20
Debt Equity Ratio (Total Liability/Networth)		1.63	1.18	0.99
Current Ratio (Current Asset/Current Liability)		5.08	5.61	5.42

LOCAL AGENCY FURTHER INFORMATION

Performance Review

The revenue for the year stood at Rs.1616 millions recording a growth of 82% to the revenues for FY 2008-09.

Considering the immense competition in the market place this achievement in sales is highly credit worthy. During the year, the company has expanded its presence into newer areas and has made concerted efforts to face the competition with high quality, prompt service and high energy market penetration policies.

Profit after tax of 3.8% compares well with the industry.

Future Prospects

The company has entered newer fields as a matter deliberate policy to encash emerging market opportunities average market presence and create new markets through strategic alliances and innovative approaches. As part of this strategy, the company has mode forays into infrastructure domain as relates to its core area. Those initiatives include creation of project division to take up EPC/BOP works of power projects. a telecom division to capitalize on opportunities in the area and creation of trading arm to sell GE products in South India with a view to eventually setting up a manufacturing base for GE and other consumer white goods.

The company has taken the work of equipping each of these new divisions with the wherewithal including right personnel, equipment, contract and other business inputs. The results of these efforts have so far been quite encouraging.

Contingent Liabilities (As on 31.03.2010)

Letters of Credit – Rs.299.454 Millions

Counter Guarantees Given to Banks Towards

- Bank Guarantees Issued – Rs.65.132 Millions

Fixed Assets:-

· Land

· Building

· Plant and Machinery and Office Equipments etc.

· Furniture and Fixtures

· Vehicles

· Computers

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.51.16
UK Pound	1	Rs.81.80
Euro	1	Rs.68.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	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	-

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.