MIRA INFORM REPORT

Report Date :

10.04.2012

IDENTIFICATION DETAILS

Name :	INDIA JAPAN LIGHTING PRIVATE LIMITED
Registered Office :	Aalim Centre, 82, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.12.1996
Com. Reg. No.:	18-37208
Capital Investment / Paid-up Capital :	Rs.700.000 millions
CIN No.: [Company Identification No.]	U40109TN1996PTC037208
TAN No.: [Tax Deduction & Collection Account No.]	CHEI04150G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Head Lamps, Tail Lamps, Rear Lamps, Licence Plate Lamps, Front Turn Signal Lamps, Dome Lamps, Head Lamps with Bliners and Automotive Lighting Equipments.
No. of Employees:	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 1517892
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. Profitability of the company is under severe pressure. There appears to be some accumulated losses recorded by the company. However trade relations are reported as fair. Business is active. Payments are reported to be slow. Company can be considered for business dealings with some caution.

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 :	Aalim Centre, 82, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, Tamilnadu, India
Tel. No.:	91-44-28110063 / 28110074
Fax No.:	91-44-28115624
E-Mail :	tvvenkat@ijl.co.in
Factory :	No. 1, Puduchathram, (Via) Tirumazhisai, Thiruvellore High Road, Chennai – 601107, India.

DIRECTORS

AS ON 28.06.2011

Name :	Mr. Tirumala Kumara Balaji
Designation :	Director
Address :	34, Poes Garden, Chennai – 600 086, Tamilnadu, India
Date of Birth/Age :	12.07.1948
Date of Appointment :	27.12.1996

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	U35999TN1961PLC004678	LUCAS TVS LIMITED	Managing director	24/08/2009	24/08/1979	-	Active	NO
2	U34101TN1929PLC002973	T.V. SUNDRAM IYENGAR & SONS LIMITED	Director	31/08/1979	31/08/1979	-	Active	NO
3	U35999TN1930PLC005705	LUCAS INDIAN SERVICE LIMITED	Director	15/10/1979	15/10/1979	-	Active	NO
4	U24117TN1952PLC005704	DELPHI-TVS DIESEL SYSTEMS LIMITED	Managing director	01/04/2007	15/10/1979	-	Active	NO
5	L35999TN1962PLC004792	SUNDARAM –CLAYTON LIMITED	Director	28/11/1984	28/11/1984	-	Active	NO
6	L74999TZ1984PLC001456	TITAN INDUSTRIES LIMITED	Director	01/03/1986	01/03/1986	-	Active	NO
7	L31901TN1984PLC011021	INDIA NIPPON ELECTRICALS LIMITED	Director	28/07/1986	28/07/1986	-	Active	NO
8	U40109TN1996PTC037208	INDIA JAPAN LIGHTING PRIVATE LIMITED	Director	27/12/1996	27/12/1996	-	Active	NO
9	U30007TN1997PTC038151	HARITA ELECTRONICS PRIVATE LIMITED	Director	09/05/1997	09/05/1997	-	Active	NO
10	L35921TN1992PLC022845	TVS MOTOR COMPANY LIMITED	Director	15/02/2000	15/02/2000	14/08/2008	Active	NO
11	U93090TN1983NPL010185	PUNARVASU SWASTHI PRIVATE LIMITED	Director	16/03/2000	16/03/2000	-	Active	NO
12	U93090TN1983NPL010186	HASTHAM SWASTHI PRIVATE LIMITED	Director	16/03/2000	16/03/2000	-	Active	NO
13	L85110TN1979PLC008035	APOLLO HOSPITALS ENTERPRISE LIMITED	Director	17/09/2001	17/09/2001	-	Active	NO
14	L30007TN1995PLC032941	TVS ELECTRONICS LIMITED	Director	18/07/2003	18/07/2003	04/08/2008	Active	NO
15	U50101TN2005PLC057476	TVS AUTOMOTIVE SYSTEMS LIMITED	Director	14/09/2005	14/09/2005	-	Active	NO
16	U65191TN1994PLC028851	TVS INVESTMENTS LIMITED	Director	14/09/2009	28/08/2008	-	Active	NO
17	U65920TN2008PLC069758	TVS Credit Services Limited	Director	23/06/2010	03/05/2010	-	Active

Name :	Mr. Krishnavilasam Raghavan Anandakumaran Nair
Designation :	Director
Address :	7, Stone Link Avenue, Raja Annamalaipuram, Chennai – 600 028, Tamilnadu, India
Date of Birth/Age :	01.12.1939
Date of Appointment :	27.12.1996

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	U40109TN1996PTC037208	INDIA JAPAN LIGHTING PRIVATE LIMITED	Director	27/12/1996	27/12/1996	-	Active	NO
2	L31901TN1984PLC011021	INDIA NIPPON ELECTRICALS LIMITED	Director	01/04/1999	01/04/1999	26/03/2009	Active	NO

Name :	Mr. Arvind Balaji
Designation :	Director
Address :	34, Poes Garden, Chennai – 600 086, Tamilnadu, India
Date of Birth/Age :	08.12.1974
Date of Appointment :	16.06.2006

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	U35999TN1930PLC005705	LUCAS INDIAN SERVICE LIMITED	Director	22/09/2010	10/05/2004	-	Active	NO
2	U50101TN2005PLC057476	TVS AUTOMOTIVE SYSTEMS LIMITED	Director	14/09/2005	14/09/2005	-	Active	NO
3	U93090TN1983NPL010185	PUNARVASU SWASTHI PRIVATE LIMITED	Director	15/02/2006	15/02/2006	-	Active	NO
4	U93090TN1983NPL010186	HASTHAM SWASTHI PRIVATE LIMITED	Director	15/02/2006	15/02/2006	-	Active	NO
5	U40109TN1996PTC037208	INDIA JAPAN LIGHTING PRIVATE LIMITED	Director	16/06/2006	16/06/2006	-	Active	NO
6	U70101TN2007PTC063926	PROSPERTREE ESTATES PRIVATE LIMITED	Director	12/06/2007	12/06/2007	07/09/2011	Active	NO
7	U65993TN1995PLC030884	SYNERGY SHAKTHI RENEWABLE ENERGY LIMITED	Director	27/08/2008	06/08/2007	-	Active	NO
8	U35999TN1961PLC004678	LUCAS TVS LIMITED	Managing director	18/04/2008	13/12/2007	-	Active	NO
9	L31901TN1984PLC011021	INDIA NIPPON ELECTRICALS LIMITED	Director appointed in casual vacancy	25/10/2008	25/10/2008	26/03/2009	Active	NO
10	U01400TN2009PTC070420	HARITA GREENS PRIVATE LIMITED	Director	09/01/2009	09/01/2009	-	Active	NO
11	U40104TN2009PTC070419	HARITA ARVIND ENERGY PRIVATE LIMITED	Director	09/01/2009	09/01/2009	-	Active	NO
12	U50404TN2009PLC071075	TVS MOTOR SERVICES LIMITED	Director	30/07/2010	22/04/2009	-	Active	NO
13	U24117TN1952PLC005704	DELPHI-TVS DIESEL SYSTEMS LIMITED	Director appointed in casual vacancy	16/06/2009	16/06/2009	-	Active	NO
14	U99999DL1959PLC176013	AUTOMOTIVE COMPONENT MANUFACTURERS ASSOCIATION OF INDIA	Director	03/09/2009	03/09/2009	-	Active

Name :	Mr. Hiroshi Mihara
Designation :	Director
Address :	2-2-9, Kitamgome Ohtaku, Tokyo, Japan – 1430021
Date of Birth/Age :	19.02.1955
Date of Appointment :	10.09.2005

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	U40109TN1996PTC037208	INDIA JAPAN LIGHTING PRIVATE LIMITED	Director	10/09/2005	10/09/2005	-	Active	NO

Name :	Mr. K Yamamoto
Designation :	Director
Address :	108-01, Kikkawa, Shimizu-ku, Shiazuoka-Shi, Japan – 4240055
Date of Birth/Age :	30.06.1967
Date of Appointment :	26.03.2007

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	U40109TN1996PTC037208	INDIA JAPAN LIGHTING PRIVATE LIMITED	Whole-time director	30/06/2009	18/09/2006	-	Active	NO

Name :	Mr. Takanori Suzuki
Designation :	Director
Address :	B3, Ceebros Malikai Apartments, Pycrofts Garden Road, Chennai – 600 034, Tamilnadu, India
Date of Birth/Age :	09.01.1951
Date of Appointment :	01.10.2007

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	U40109TN1996PTC037208	INDIA JAPAN LIGHTING PRIVATE LIMITED	Director	01/10/2007	01/10/2007	28/12/2010	Active	NO

Name :	Mr. Yutaka Mikami
Designation :	Whole Time Director
Address :	Flat No. B-122, Pilot Court, Essel Tower, M G Road, Gurgaon – 122 002, Haryana, India
Date of Birth/Age :	28.09.1961
Date of Appointment :	30.06.2009

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	U40109TN1996PTC037208	INDIA JAPAN LIGHTING PRIVATE LIMITED	Alternate director	02/06/2010	02/06/2010	28/12/2010	Active	NO

Name :	Mr. Y Sugiyama
Designation :	Director
Address :	4-8-3, Takanawa, Minato – Ku, Japan
Date of Birth/Age :	18.03.1951
Date of Appointment :	02.06.2010
Date of Ceasing :	28.12.2010
Name :	Mr. K Morita
Designation :	Director
Address :	Flat No.1B, 1^st Floor, Ashok Shrishti Apartment, Door No.14, New No.12, Ganapathy Colony, First Street, Gopalapuram, Chennai – 600086, Tamilnadu, India
Date of Birth/Age :	19.11.1958
Date of Appointment :	28.12.2010

KEY EXECUTIVES

Name :	Mr. T V Venkataramanan
Designation :	Secretary
Address :	New No. 27 (Old No. 10) Vyasar Street, East Tambaram, Chennai – 600 059, Tamilnadu, India
Date of Birth/Age :	25.05.1968
Date of Appointment :	10.07.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.06.2011

Names of Shareholders	No. of Shares
Koito Manufacturing Company Limited, Japan	35000000
Lucas TVS Limited, Chennai	35000000
Total	70000000

Equity share breakup (percentage of total equity)

AS ON 28.06.2011

Category	Percentage
Foreign holdings (foreign institutional investor(s), Foreign companie(s), Foreign financial institution(s), Non resident Indian(s) or Overseas corporate bodies or others	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Head Lamps, Tail Lamps, Rear Lamps, Licence Plate Lamps, Front Turn Signal Lamps, Dome Lamps, Head Lamps with Bliners and Automotive Lighting Equipments.

Products :

Product Description	ITC Code
Head Lamps	851220.01
Tail Lamps	851220.01
Head Lamp with Blinkers	851220.01
Automotive Lighting Equipments	851220.02

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity @	Actual Production
Automotive Lighting Products	Nos.	3900000	3870000	1861288
Others **	Nos.	363137	253841	--

@ As certified by management and relied upon by the auditors being technical matter.

*excluding bought out items.

GENERAL INFORMATION

Bankers :

Bank of Baroda, IF Branch, 252 A, TTK Road, Alwarpet, Chennai – 600 018, Tamilnadu, India

Facilities :

Secured Loans	As on 31.03.2011 Rs. In millions	As on 31.03.2010 Rs. In millions
From Banks
Rupee term loans banks secured	490.000	656.500
Working capital loans banks secured	78.179	54.905
Total	568.179	711.405

Term Loans secured by hypothecation of Plant and Machinery, Cash Credit secured by hypothecation of Stocks and Book Debts

Unsecured Loans	As on 31.03.2011 Rs. In millions	As on 31.03.2010 Rs. In millions
Rupee term loans banks unsecured	186.830	60.000
Other debt unsecured	48.480	161.387
Total	235.310	221.387

Amounts Repayable within one year –Rs.90.248

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	ASV Ramana Towers, No. 52, Venkatnarayan Road, T Nagar, Chennai – 600 017, Tamilnadu, India
Holding Company :	· Koito Manufacturing Company Limited, Japan · Lucas TVS Limited, Chennai

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/- each	Rs.750.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
70000000	Equity Shares	Rs.10/- each	Rs.700.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		700.000	700.000	700.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(320.527)	(334.486)	(354.783)
NETWORTH		379.473	365.514	345.217
LOAN FUNDS
1] Secured Loans		568.179	711.405	875.787
2] Unsecured Loans		235.310	221.387	249.875
TOTAL BORROWING		803.489	932.792	1125.662
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1182.962	1298.306	1470.879
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1155.697	1323.128	1440.780
Capital work-in-progress		56.507	9.437	3.186
INVESTMENT		2.100	2.100	2.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	144.785	124.095	136.536
	Sundry Debtors	222.453	125.974	145.223
	Cash & Bank Balances	2.484	52.611	107.434
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	175.241	130.563	112.979
Total Current Assets		544.963	433.243	502.172
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	479.634	274.640	291.596
	Other Current Liabilities	63.754	129.556	183.263
	Provisions	32.918	35.702	2.500
Total Current Liabilities		576.306	439.898	477.359
Net Current Assets		(31.343)	(36.359)	24.813
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1182.962	1298.306	1470.879

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income			1424.230
		Other Income	2223.500	2207.900	32.013
		TOTAL (A)	2223.500	2207.900	1456.243
Less	EXPENSES
		Material Consumed	NA	NA	891.221
		Employee Cost	NA	NA	152.849
		Manufacturing and Other Expenses	NA	NA	221.247
		Selling Expenses	NA	NA	61.620
		TOTAL (B)	NA	NA	1326.937
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		284.000	322.300	129.306
Less/ Add	DEPRECIATION/ AMORTISATION		182.900	194.000	158.278
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		101.100	128.300	(28.972)
Less	FINANCIAL EXPENSES		87.200	108.000	121.746
	PROFIT BEFORE TAX		13.900	20.300	(150.718)
Less	TAX		0.000	0.000	2.537
	PROFIT AFTER TAX		13.900	20.300	(153.255)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(339.200)	(359.500)	(206.263)
	BALANCE CARRIED TO THE B/S		(325.300)	(339.200)	(359.508)
	Earnings Per Share (Rs.)		0.20	0.29	(3.80)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.63	0.91	(10.52)
Net Profit Margin (PBT/Sales)	(%)	NA	NA	(10.58)
Return on Total Assets (PBT/Total Assets}	(%)	0.82	1.17	(7.76)
Return on Investment (ROI) (PBT/Networth)		0.04	0.05	(0.44)
Debt Equity Ratio (Total Liability/Networth)		3.55	3.75	4.64
Current Ratio (Current Asset/Current Liability)		0.95	0.91	1.05

LOCAL AGENCY FURTHER INFORMATION

INDIAN AUTOMOTIVE INDUSTRY

During the financial year 2010-11, the automobile sector registered an overall growth of 27 % compared to 2009-10. The Passenger and Utility vehicles segment grew by 26% while the commercial vehicles segment grew by 38%. The two wheeler market recorded a growth of 27%.

However, the market for export of passenger cars was flat during the year, due to withdrawal of Government incentives in Europe.

PERFORMANCE REVIEW

The company, which currently operates in the passenger car domain, recorded lower product sales compared to last year due to loss of facelift business for an existing model. However, addition of other new businesses and revenues from development activities associated with new products enabled the company to register a marginal increase in sales during the year. Spare sales to OEMs during the year increased by 31%.

Chennai plant sales increased 20% during the year. While the Chennai plant capacity utilisation during the year improved to 80%, the Bawal plant operated at about 50% level. This led to lower operating margins. It is expected that with increase in sales from new products, the company would improve its profitability in the ensuing year.

BUSINESS DEVELOPMENT AND NEW PRODUCTS

The company has started supplying for Toyotas Etios Model launched in December 2010.As mentioned in the last years report, the development work has neared completion for 10 new models across various segments due for launch in the ensuing year and is in progress for new businesses to be launched in the financial year 2012-13.

The company has secured business from an OE manufacturer for supply of headlamps to their new generation vehicles in commercial segment.

The Company is actively pursuing business opportunities with other OEM vehicle manufacturers, to increase the capacity utilisation of both the plants.

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	--
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

Form No. 8

Corporate identity number of the company	U40109TN1996PTC037208
Name of the company	INDIA JAPAN LIGHTING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Aalim Centre, 82, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, Tamilnadu, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Maruti Suzuki India Limited 11^th Floor, Jeevan Prakash, 25 Kasturba Gandhi Marg, New Delhi – 110 001, India
Nature of instrument creating charge	Deed of Hypothecation
Date of instrument Creating the charge	14.10.2008
Amount secured by the charge	Rs.39.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest 12.25% per annum · Terms of repayment As per repayment schedule determined by Maruti Suzuki India Limited · Margin Nil · Extent and Operation of the charge As mentioned in the deed of hypothecation
Particulars of the property charged	Model YC5 Type B – Body Mould, Lens Mould, Extension Mould, Gauges and Fixtures, Test Stands India Japan Lighting Private Limited, Plot No. 22 to 25, Sector VI, HSIDC Growth centre, Bawal Industrial Area, Rewari District, Haryana – 123 501.

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.51.27
UK Pound	1	Rs.81.38
Euro	1	Rs.67.01

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	--
--CREDIT LINES	1~10	4
--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		26

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.