MIRA INFORM REPORT

Report Date :

16.08.2012

IDENTIFICATION DETAILS

Name :	SIGMA FREUDENBERG NOK PRIVATE LIMITED
Registered Office :	R 561, Shankar Road, New Rajinder Nagar, Delhi – 110060, New Delhi
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.09.2000
Com. Reg. No.:	55-107504
Capital Investment / Paid-up Capital :	Rs.150.000 Millions
CIN No.: [Company Identification No.]	U11202DL2000PTC107504
TAN No.: [Tax Deduction & Collection Account No.]	DELS14533B
PAN No.: [Permanent Account No.]	BMBPS1799A
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturing and Trading in Oil Seals
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 2600000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. It has recorded a better increase in its sales turnover and profitability during 2011. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	LA- (Long term Bank Facilities)
Rating Explanation	Low credit risk
Date	Dec, 2010

Rating Agency Name	ICRA
Rating	A1 (Short term Bank Facilities)
Rating Explanation	Very Strong degree of safety and lowest credit risk
Date	Dec, 2010

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	R 561, Shankar Road, New Rajinder Nagar, Delhi – 110060, New Delhi
Tel. No.:	91-11-42411600
Mobile No.:	Not Available
Fax No.:	91-11-42411605
E-Mail :	anjali.jain@sfnindia.com rkpandey@sfindia.com
Website:	www.sfindia.com
Head Office/ Factory :	B-70, INDUSTRIAL AREA, SECTOR – 71 (PHASE VII), MOHALI - 160055, INDIA
Tel. No.:	91-172-2237771 (72)
Fax No.:	91-172-5093876
E-Mail :	plant@sfnindia.com
Sales Offices:	Located at : · Gurgaon Address: Plot No. -12, Udyog Vihar, Phase-IV, Gurgaon - 122015, Haryana (India) Tel. No.: 91-124-4007960, 4007993, 4018228, 4018338,4018448 Fax No.: 91-124-4018668 E-Mail : sales@sfnindia.com · Pune Address: B-11, Radhakrishnagari, Anand Nagar, Sinhagad Road, Pune - 411051 (India) Fax No.: 91-20-4353905 E-Mail : m.v.kadkol@sfnindia.com · Chennai Address: New No. 29, Old No. 7, 2nd Street, Shanti Nagar, Adambakkam, Chennai - 600088, Tamil Nadu, (India) Fax No.: 91-44-22604136 / 22603136 E-Mail : jaiganesh@sfnindia.com · Bangalore Address: 36/11, Bapu Cottage, 2^nd Floor, Kanakpura Road, Basavangudi Bangalore - 560 004 (India) Mob No.: 91 9900214793 E-Mail : natrajan@sfnindia.com

DIRECTORS

As on 23.09.2011

Name :

Mr. Kabir Singh Chadha

Designation :

Alternate director (President)

Address :

A-9/13C, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

16.09.1974

Qualification :

MBA (U.S.A), PGDBF

Experience :

13 Years

Date of Appointment :

29.08.2011

DIN No.:

00022529

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1994PLC058667	SIGMA INDUSTRIES LIMITED	Director	28/04/1994	28/04/1994	-	Active	NO
2	U74899DL1995PLC068007	SIGMA CORPORATION (INDIA) LIMITED	Director	28/04/1995	28/04/1995	-	Active	NO
3	U34300DL1997PTC090067	SIGMA VIBRACOUSTIC (INDIA) PRIVATE LIMITED	Managing director	30/10/2006	10/07/1998	-	Active	NO
4	U74899DL2001PTC109514	SIGMA MOULDS AND STAMPINGS PRIVATE LIMITED	Director	15/11/2002	15/11/2002	18/03/2009	Active	NO
5	U11202DL2000PTC107504	SIGMA FREUDENBERG NOK PVT LTD	Alternate director	29/08/2011	28/09/2005	-	Active	NO
6	U45400DL2007PTC165700	TYRO PROPBUILD PRIVATE LIMITED	Director	30/09/2008	20/10/2007	20/01/2011	Active	NO

Name :

Mr. Jagdip Singh

Designation :

Director

Address :

A-9/13C, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

05.11.1944

Date of Appointment :

04.09.2000

DIN No.:

00022579

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1986PTC023869	SIGMA BROS MOTOR CAR COMPANY PRIVATE LIMITED	Director	08/04/1986	08/04/1986	-	Active	NO
2	U74899DL1994PLC058667	SIGMA INDUSTRIES LIMITED	Director	28/04/1994	28/04/1994	-	Active	NO
3	U74899DL1995PLC068007	SIGMA CORPORATION (INDIA) LIMITED	Director	28/04/1995	28/04/1995	-	Active	NO
4	U34300DL1997PTC090067	SIGMA VIBRACOUSTIC (INDIA) PRIVATE LIMITED	Director	08/10/1997	08/10/1997	-	Active	NO
5	U11202DL2000PTC107504	SIGMA FREUDENBERG NOK PVT LTD	Director	04/09/2000	04/09/2000	-	Active	NO
6	U74899DL2001PTC109514	SIGMA MOULDS AND STAMPINGS PRIVATE LIMITED	Director	06/02/2001	06/02/2001	18/03/2009	Active	NO
7	U34300DL2004PTC130589	SIGMA AUTOMOTIVE MATERIALS PRIVATE LIMITED	Director	17/11/2004	17/11/2004	-	Active	NO
8	U74899DL1992PTC051481	AVTAR AGENCIES PRIVATE LIMITED	Director	03/03/2005	03/03/2005	-	Active	NO
9	U34300DL1996PLC081210	CONTINENTAL ENGINES LIMITED	Director	20/09/2010	29/03/2010	26/03/2012	Active	NO

Name :

Mr. Taranjit Singh

Designation :

Director

Address :

A-9/13C, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

13.04.1947

Date of Appointment :

04.09.2000

DIN No.:

00022623

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1986PTC023869	SIGMA BROS MOTOR CAR COMPANY PRIVATE LIMITED	Director	08/04/1986	08/04/1986	-	Active	NO
2	U74899DL1994PLC058667	SIGMA INDUSTRIES LIMITED	Director	28/04/1994	28/04/1994	-	Active	NO
3	U74899DL1995PLC068007	SIGMA CORPORATION (INDIA) LIMITED	Managing director	28/04/1995	28/04/1995	-	Active	NO
4	U34300DL1997PTC090067	SIGMA VIBRACOUSTIC (INDIA) PRIVATE LIMITED	Director	08/10/1997	08/10/1997	-	Active	NO
5	U11202DL2000PTC107504	SIGMA FREUDENBERG NOK PVT LTD	Director	04/09/2000	04/09/2000	-	Active	NO
6	U74899DL2001PTC109514	SIGMA MOULDS AND STAMPINGS PRIVATE LIMITED	Director	06/02/2001	06/02/2001	18/03/2009	Active	NO
7	U34300DL2004PTC130589	SIGMA AUTOMOTIVE MATERIALS PRIVATE LIMITED	Director	17/11/2004	17/11/2004	-	Active	NO
8	U74899DL1992PTC051481	AVTAR AGENCIES PRIVATE LIMITED	Director	03/03/2005	03/03/2005	-	Active	NO

Name :

Jiro Iida

Designation :

Nominee director

Address :

6-28-20, Wadatanakam, Achi Takasi – Shi, Gunma-Ken – 3700844, Japan

Date of Birth/Age :

09.04.1955

Date of Appointment :

27.06.2003

DIN No.:

00084839

Name :

Claus Dieter Moehlenkamp

Designation :

Director

Address :

Weinstr, 602, Neustadt – 67434, Germany

Date of Birth/Age :

15.10.1965

Date of Appointment :

13.05.2008

DIN No.:

02875299

KEY EXECUTIVES

Name :	Ms. Anjali Jain
Designation :	Secretary
Address :	299, Sector – 19, Faridabad, Haryana – 121002, India
Date of Birth/Age :	30.08.1979
Date of Appointment :	02.04.2012
PAN No.:	AASPK8351Q
Name :	Mr. Rajesh Kumar Pandey
Designation :	Secretary
Date of Appointment :	24.09.2009
PAN No.:	ARUPP2371A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.09.2011

Names of Shareholders	No. of Equity Shares
Jagdip Singh	270000
Taranjit Singh	270000
NOK Freudenberg Asia Holding Company Pte Limited, Singapore	6750000
Sigma Corporation Limited, India	1710000
Sigma Industries Limited, Singapore	4500000
Total	13500000

Names of Shareholders	No. of Preference Shares
Nok Freudenberg Asia Holding Company Pte Limited, Singapore	1500000
Total	1500000

Equity Share Break up (Percentage of Total Equity)

As on 23.09.2011

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	46.00
Directors or relatives of Directors	4.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Trading in Oil Seals

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Oil Seals	Nos.	90.000	66.614

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, Sector 17C, SC No 117-119, Chandigarh – 160017, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	24.944	51.975
Working capital loans banks secured	315.501	220.580
Loans taken for fixed assets secured	0.283	2.452
Interest accrued due other debt secured	0.220	0.000
Total	340.948	275.007
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Other debt unsecured	6.870	6.459
Total	6.870	6.459

Banking Relations :	-
Auditors :
Name :	B.S. Sawhney and Associates Chartered Accountant
Address :	F-249(GF), New Rajinder Nagar, New Delhi, India
PAN No:	AADFB4610H
Associates and Joint Ventures :	· Freudenberg Iberica SA Spain · Freudenberg O-Ring KG, Germany · Freudenberg Simmerringe KG, Germany · Freudenberg Simrit LP, Germany · Freudenberg Technical Products, UK · Corcos Industrial SPA, Italy · Corcos Simrit SAS-Italy · Freudenberg SAS, France · Merkel Freudenberg Fluidtechnic GMBH, Germany · NOK Asia Company Private Limited · Freudenberg Dichtungs-und schwingungstechnikGmbh,Germany · Freudenberg NOK General Partnership, USA · Freudenberg Stanz Und Unformtechnik, Germany · Freudenberg Forchungsdienste, Germany · Sigma Moulds & Stampings Private Limited · Sigma Vibracoustic India Private Limited · Corteco Asia Company Pte. Limited., Singapore · Dichtomatic GMbh, Germany · Iberica SAS Freu. SAS ENC · Freudenberg Meillor SAS · Fapam S.R.L · NOK Corporation · Freudenberg Spezialdichtungs · Freudenberg Schwingungstechnik · Freudenberg Vliesstoffe KG, Germany · Right Guard Rubber Private Limited · Freudenberg Analgen - UND- Werrkzeugtechnik KG, Germany · Corteco SRL Italy · Freudenberg Simrit KG- Germany · Corteco U.K - · Corteco - France · Simrit - Spence · Freudenberg SAS Langers · Thai Nok Company Limited · Freudenberg ESPA · Corteco Meilor Sas · Integral Accumulator,Germany · Burgmann Sealing Materials Company. · Merkel NOK Freudenberg Company Limited, China · P.O.S. Korea · Toa Equipment, Singapore · Freudenberg-NOK- Componentes, Brasil · Freudenberg Dichtungs · Freudenberg Meillor S.A.S · Freudenberg Simrit GmbH and Co.kg · Simrit Spencer · Corteco Millior · Freudenberg S.A.S. · Freudenberg ESPA · Burgmann Packings Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
13500000	Equity Shares	Rs.10/- Each	Rs.135.000 Millions
1500000	Preference Shares	Rs.10/- Each	Rs.15.000 Millions
	TOTAL		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13500000	Equity Shares	Rs.10/- Each	Rs.135.000 Millions
1500000	Preference Shares	Rs.10/- Each	Rs.15.000 Millions
	TOTAL		Rs.150.000 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		150.000	150.000	150.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		523.358	350.561	249.497
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		673.358	500.561	399.497
LOAN FUNDS
1] Secured Loans		340.948	275.008	300.505
2] Unsecured Loans		6.870	6.459	5.510
TOTAL BORROWING		347.818	281.467	306.015
DEFERRED TAX LIABILITIES		45.378	40.398	39.669
TOTAL		1066.554	822.426	745.181
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		502.295	406.792	383.183
Capital work-in-progress		3.304	24.113	4.767
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	263.897	210.768	213.704
	Sundry Debtors	377.618	302.644	222.650
	Cash & Bank Balances	19.350	12.122	10.600
	Other Current Assets	0.017	0.000	0.000
	Loans & Advances	180.620	113.635	89.466
Total Current Assets		841.502	639.169	536.420
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	152.505	157.960
	Other Current Liabilities	33.347	22.935
	Provisions	94.695	66.753
Total Current Liabilities		280.547	247.648	179.209
Net Current Assets		560.955	391.521	357.211
MISCELLANEOUS EXPENSES		0.000	0.000	0.020
TOTAL		1066.554	822.426	781.181

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1649.400	1164.350	974.040
		Other Income	37.360	35.020	30.810
		TOTAL	1686.760	1199.370	1004.850
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	1430.050	1049.180	875.150
	PROFIT BEFORE TAX		256.710	150.190	129.700
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB	183.676	160.296
		Commission	6.071	1.198
	TOTAL EARNINGS		189.747	161.494	182.490
	IMPORTS
		Raw Materials	287.134	174.642
		Trading	246.531	208.700
		Components and spare parts	7.453	4.179
		Capital Goods	105.542	55.853
	TOTAL IMPORTS		646.66	443.374	N.A

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	15.56	12.90	13.31
Return on Total Assets (PBT/Total Assets}	(%)	24.07	14.36	14.10
Return on Investment (ROI) (PBT/Networth)		0.38	0.30	0.32
Debt Equity Ratio (Total Liability/Networth)		0.93	1.06	1.21
Current Ratio (Current Asset/Current Liability)		3.00	2.58	2.99

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
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	No
20]	Export / Import details (if applicable)	No
21]	Market information	-------
22]	Litigations that the firm / promoter involved in	-------
23]	Banking Details	Yes
24]	Banking facility details	No
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U11202DL2000PTC107504
Name of the company	SIGMA FREUDENBERG NOK PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	R 561, Shankar Road, New Rajinder Nagar, Delhi – 110060, New Delhi, India Email: rkpandey@sfnindia.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90049462
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Canara Bank, Sector 17C, SC No 117-119, Chandigarh – 160017, India Email: salinagoyal@canbank.co.in
Nature of instrument creating charge	Letter of renewal dated 15-04-2011
Date of instrument Creating the charge	15.04.2011
Amount secured by the charge	Rs.100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate + 1.50% = 11% P.A. (Floating) Terms of Repayment Repayable on demand Margin 5% on BG/FLC(DA/DP) Buyer's Credit Extent and Operation of the charge 100%
Short particulars of the property or asset(s) charged (including complete address and location of the property)	1st Pari Passu Charge on Stock and Book Debts as primary security 2nd Pari Passu Charge on entire fixed assets of the Company as collateral security
Date of instrument modifying the charge	22.04.2010
Particulars of the present modification	Limit renewed vide letter of renewal dated 15-04-2011

PERFORMANCE REVIEW OF THE COMPANY:

Auto Component Industry is gathering speed as it has direct bearing to automobile sector. Robust automobile sales should translate into strong order inflows for auto component manufacturers. In the year 2010-11 Auto component Industry has registered encouraging results and growth, which augur well for the year ahead. The company recorded an impressive growth of 41.66% per cent in value. In brief, all customers of the Company are on growth path and Company is confident to meet their increased demand.

Financial Year 2010-2011 your Company has shown a tremendous growth of 41.66% in overall sales after Economic Slowdown. Trading Sales showed growth of 36.63%, Export Sales showed a growth of 14.62% and Domestic Sales showed tremendous growth of 52.06%.

Since expansion activities in the area of Rubber Mixing Unit and Plant Expansion your Company has posted better results by achieving new heights of Growth.

CONTINGENT LIABILITIES:

· The Company has given Bank Guarantee of Rs.0.300 Million (Previous year Rs.0.300 Million) for Sales Tax.

· The Company has opened account in Punjab National Bank for custom duty payment. For better utilization of funds, Company has placed FDR of Rs.2.000 Million with bank and taken overdraft facility of Rs.1.850 Millions against the said FDR.

· Rs.26.720 Millions (Previous Year Rs.70.270 Millions) is not provided for on account of capital commitment, which is remaining to be executed as on 31^st March, 2011.

· FLC Rs.22.744 Millions (Previous Year (Rs.3.210 Millions)

· Bill Discounting (Clean) Rs.87.927 Millions (Previous Year Rs.32.124 Millions )

· Bill Discounting (LC Discounting) Rs.12.620 Millions (Previous Year Rs Nil )

TRADING:

The company has taken various steps to increase the Trading sales. Company has taken one Expat on full time basis from JV Partner NOK and also hired one trained Engineer from Merkel on full time basis. As a result of which the Trading Sales has showed a growth of 36.63%. Company hopes that it will add new customers, and to do increased sales with the existing Customers, in the Current Financial Year also.

MANUFACTURING:

The Company is taking active steps to increase the production, New Rubber Mixing Unit has been installed and Plant Expansion is in pipeline. During the year manufacturing sales has showed tremendous growth of 52.06%

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 exist 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.55.64
UK Pound	1	Rs.87.31
Euro	1	Rs.68.81

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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		44

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.