MIRA INFORM REPORT

Report Date :

20.08.2012

IDENTIFICATION DETAILS

Name :	FIAT INDIA AUTOMOBILES LIMITED (w.e.f. 05.11.2008)
Formerly Known As :	FIAT INDIA AUTOMOBILES PRIVATE LIMITED
Registered Office :	Plot No. B – 19, MIDC, Rajangaon Industrial Area, Ranjangaon, Taluka Shirur, Pune – 412 210, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.01.1997
Com. Reg. No.:	11-130940
Capital Investment / Paid-up Capital :	Rs. 18349.280 Millions
CIN No.: [Company Identification No.]	U28900PN1997PLC130940
TAN No.: [Tax Deduction & Collection Account No.]	MUMF02175F
PAN No.: [Permanent Account No.]	AAACF1716D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Automobiles
No. of Employees :	2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 36000000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a 50-50 Joint venture between Tata Motors, India and Fiat Automobiles, Italy. There appears some losses being incurred by the Indian operations. However trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In view of strong promoters the company can be considered for small to mediocre 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Long Term Rating	CRISIL BBB +
Rating Explanation	Moderate credit risk
Date	May 14, 2012

Rating Agency Name	CRISIL
Short Term Rating	CRISIL A2
Rating Explanation	Strong degree of safety and low credit risk
Date	May 14, 2012

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.

INFORMATION PARTED BY (General Details)

Name :	Mr. Bhushan
Designation :	Sales Executive
Contact No.:	91-2138-672701
Date :	17.08.2012

LOCATIONS

Registered Office/ Factory :	Plot No. B – 19, MIDC, Rajangaon Industrial Area, Ranjangaon, Taluka Shirur, Pune – 412 210, Maharashtra, India
Tel. No.:	91-2138-672701 / 672700 / 232144/ 5/ 6/ 7
Fax No.:	91-2138-232143 / 672895
E-Mail :	bhushan.tawate@fiapl.com anil.joshi@fiat.com anil.joshi@fiapl.com
Website :	www.fiat-india.com
Location :	Owned
Corporate (Mumbai) Office:	Corporate Park II, 5^th Floor, Sion Trombay Road, Chembur, Mumbai- 400071, Maharashtra, India
Tel. No.:	91-22-67293800

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Carl Peter Edmund Moritz Forster
Designation :	Director
Address :	Karl Theodor, STR 25, Munchen 80803
Date of Birth/Age :	09.05.1954
Date of Appointment :	09.06.2010
DIN No.:	02986480
Name :	Mr. Chandrasekaran Ramakrishnan
Designation :	Director
Address :	322, Samudra Mahal, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	27.06.1955
Date of Appointment :	28.12.2007
DIN No.:	00020076
Name :	Mr. Prakash Manjanath Telang
Designation :	Director
Address :	313, 13^th Floor, Samudra Mahal, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	21.06.1947
Date of Appointment :	19.03.2008
DIN No.:	00012562
Name :	Mr. Ramakrishnan Ramanathan
Designation :	Director
Address :	103/104, X Wing, 1^st Floor, Callalily, Nahar Amrit Shakti, R2 Sector, Chandivali, Mumbai – 400 072, Maharashtra, India
Date of Birth/Age :	17.10.1963
Date of Appointment :	24.01.2011
DIN No.:	03394401
Name :	Giovanni Sella
Designation :	Alternate director
Address :	SDA Pietra D Gallo, 15 Pino Torinese, Torino, 10025 Italy
Date of Birth/Age :	20.05.1952
Date of Appointment :	25.05.2011
DIN No.:	03192226
Name :	Mr. Alfredo Altavilla
Designation :	Director
Address :	Vialle Delle Acacie, 16/5 – 10024, Moncalieri, Torino, Italy
Date of Birth/Age :	02.08.1963
Date of Appointment :	05.09.2004
DIN No.:	00366224
Name :	Mr. Stefan Ketter
Designation :	Director
Address :	Strada Val Pattonera, N 163, INT 26, Torino Italy
Date of Birth/Age :	31.07.1959
Date of Appointment :	26.09.2008
DIN No.:	01937182
Name :	Mr. Girish Arun Wagh
Designation :	Director
Address :	Flat No.3, Pradnya Kiran Apartments, Pradnya Park, Mahatma Housing Society, Kothrud, Pune – 411029, Maharashtra, India
Date of Birth/Age :	02.12.1976
Date of Appointment :	06.07.2010
DIN No.:	03119361
Name :	Lorenzo Sistino
Designation :	Director
Address :	Via Dela Rocca, 45 Scala A, Torino, 10123, Italy
Date of Birth/Age :	12.05.1962
Date of Appointment :	19.10.2010
DIN No.:	03288954
Name :	Gianni Coda
Designation :	Director
Address :	Strada Val, S. Martino, Sup. N. 285, Torino 10131, Italy
Date of Birth/Age :	24.10.1946
Date of Appointment :	25.05.2011
DIN No.:	03524409
Name :	Alessandro Gianni Baldi
Designation :	Director
Address :	Moncalieri, Strada Giorgio Devalle, 94 Torini 10024, Italy
Date of Birth/Age :	29.08.1952
Date of Appointment :	25.05.2011
DIN No.:	03527188
Name :	Silvia Vernetti Blina
Designation :	Alternate director
Address :	Strada Del Bellardo, N. 54, CGT Trojan, Torino, 10132 Italy
Date of Birth/Age :	06.06.1965
Date of Appointment :	25.05.2011
DIN No.:	03521955
Name :	Mr. Alfredo Altavilla
Designation :	Director
Address :	Vialle Delle Acacie, 16/5 – 10024, Moncalieri, Torino, Italy
Date of Birth/Age :	02.08.1963
Date of Appointments :	05.09.2004
DIN No.:	00366224
Name :	Mr. Stefan Ketter
Designation :	Director
Address :	Strada Val Pattonera, N 163, INT 26, Torino Italy
Date of Birth/Age :	31.07.1959
Date of Appointments :	26.09.2008
DIN No.:	01937182

KEY EXECUTIVES

Name :	Mr. Anil Ishwar Joshi
Designation :	Company Secretary
Address :	2/2, Telec, Plot No.30, Sector 17, Vashi Navi Mumbai – 400703, Maharashtra, India
Date of Birth/Age :	21.12.1961
Qualification :	M.Com, LLB, ACA, ACS
Experience :	23 years
Date of Appointments :	01.07.2005
PAN No.:	AAFPJ6792D
Name :	Mr. Rama Krishshna
Designation :	Finance Manager
Name :	Mr. Rajeev Kapoor
Designation :	Chief Executive Officer
Date of Birth/Age :	28.08.1952
Qualification :	B.E. (Mechanical)
Experience :	33 years
Name :	Mr. Jayanta K. Deb
Designation :	Head – Engineering and Design
Date of Birth/Age :	58 years
Qualification :	B.E. M. Tech (Mechanical)
Experience :	32 years
Name :	Mr. R. Sivanesan
Designation :	Head – Quality
Date of Birth/Age :	50 years
Qualification :	B. Tech
Experience :	27 years
Name :	Mr. Mr. Sudhakar Panda
Designation :	Head – Human Resources
Date of Birth/Age :	56 years
Qualification :	B.E. M. Tech (Production)
Experience :	31 years
Name :	Mr. Ravi B. Gogia
Designation :	Head – Car Division
Date of Birth/Age :	43 years
Qualification :	B.E. PGDMM
Experience :	19 years
Name :	Mr. Ravi G. Bhatia
Designation :	Head – Commercial
Date of Birth/Age :	51 years
Qualification :	B.E.
Experience :	32 years
Name :	Mr. Luca Spataro
Designation :	Product Engineer
Date of Birth/Age :	36 years
Qualification :	M.E. (Mechanical)
Experience :	12 years
Name :	Mr. Bhushan
Designation :	Sales Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Fiat Group Automobiles SPA, Italy	95996392
Alberto Sibille (As a nominee of Fiat Group Automobiles SPA, Italy)	1
Tata Motors Limited, India	95996392
Tata Motors Limited Jointly with Chandrasekaran Ramakrishnan	1
Tata Motors Limited Jointly with Hoshang Sethna	1
Fiat Group Automobiles SPA Jointly with Stefano Reganzani	1
Tata Motors Limited Jointly with Puri A. S.	1
Fiat Group Automobiles SPA, Italy Jointly with Andrea Faina	1
Total	191992790

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Automobiles

Products :

Product Description	Item Code No.
Car	87032291 and 87033191
Engines and Powertrains	84073410 and 84082020
Spares and other components	87089900

Exports :

Products :

Automobiles

Countries :

· Sri Lanka

· Nepal

Imports :

Products :

Raw Material

Countries :

· China

· Italy

Terms :

Selling :

Depends

Purchasing :

Depends

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Car	Nos.	Not Applicable	200000	68952
Power Train*	Nos.	Not Applicable	350000	100952

* Includes 59569 nos. (Previous year 41134 nos.) consumed internally

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

2000 (Approximately)

Bankers :

· State Bank of India,

Corporate Accounts Group, Voltas House, 23, J.N. Herredia Marg, Ballard Estate, Mumbai-400001, Maharashtra, India

Facilities :

Secured Loan	31.03.2011	31.03.2010
	Rs. In Millions
Rupee Term Loans Banks	8889.000	10000.000
Other External Commercial Borrowing	7137.290	6995.260
Working Capital Loan Bank	999.940	2888.430
Interest Accrued Due Other Debts	0.000	66.880
Total	17026.230	19950.570
Unsecured Loan	31.03.2011	31.03.2010
	Rs. In Millions
Rupee Term Loan	2650.000	2650.000
Other External Commercial Borrowing	2484.470	2374.280
Working Capital Loan	0.000	1000.000
Finance Lease Obligation Long – Term	0.000	127.120
Other Debts	850.000	850.000
Interests Accrued Due Others	43.500	43.500
Total	6027.970	7044.900

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai 400018, Maharashtra, India
Tel. No.:	91-22-66679000
Fax No.:	91-22-66679025/ 65679100
Income-tax PAN of auditor or auditor's firm :	AACFD4815A
Joint Venture :	· Fiat Group Automobiles S.P.A. · Tata Motors Limited

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400000000	Equity Shares	Rs.100/- each	Rs.40000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
191992790	Equity Shares	Rs.100/- each	Rs.19199.279 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400000000	Equity Shares	Rs.100/- each	Rs.40000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
183492800	Equity Shares	Rs.100/- each	Rs.18349.280 Millions

NOTE:

(A) Actual number of shares issued are 183492790 but due to rounding of difference it is taken as 183492800

(B) Actual number of shares subscribed are 183492790 but due to rounding of difference it is taken as 183492800

(C) Actual number of shares paid-up are 183492790 but due to rounding of difference it is taken as 183492800

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		18349.280	14349.280	8749.280
2] Share Application Money		0.000	0.000	3000.000
3] Reserves & Surplus		2014.260	2014.260	1660.650
4] (Accumulated Losses)		(11272.750)	(9002.280)	(6112.590)
NETWORTH		9090.790	7361.260	7297.340
LOAN FUNDS
1] Secured Loans		17026.230	19950.570	0.000
2] Unsecured Loans		6027.970	7044.900	15418.490
TOTAL BORROWING		23054.200	26995.470	15418.490
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		32144.990	34356.730	22715.830
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32958.920	34636.130	30574.310
Capital work-in-progress		76.360	750.650	2312.680
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2872.610	4803.370	6314.150
	Sundry Debtors	886.840	2729.000	1610.630
	Cash & Bank Balances	4982.410	2911.580	2163.300
	Other Current Assets	51.810	5.350	0.910
	Loans & Advances	3822.480	5514.660	4760.580
Total Current Assets		12616.150	15963.960	14849.570
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12015.710	16057.250	24297.840
	Other Current Liabilities	1265.050	766.210	672.650
	Provisions	225.680	170.550	50.240
Total Current Liabilities		13506.440	16994.010	25020.730
Net Current Assets		(890.290)	(1030.050)	(10171.160)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		32144.990	34356.730	22715.830

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	34296.490	27666.670	7033.120
		Other Income	4755.550	5699.140	887.080
		TOTAL (A)	39052.040	33365.810	7920.200
Less	EXPENSES
		Consumption Materials Changed Inventories	29964.670	25351.520
		Manufacturing Services Cost	1481.240	1525.870
		Employee Related Expenses	988.180	889.340	12004.170
		Administrative, Selling and Other expenses	2717.760	2663.280
		TOTAL (B)	35151.850	30430.010	12004.170
Less	PROFIT/ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3900.190	2935.800	(4083.970)
Less	FINANCIAL EXPENSES (D)		2961.200	3009.600	1387.090
	PROFIT/ LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		938.990	(73.800)	(5471.060)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3209.460	2815.890	1191.170
Less	TRASFERRED TO EXPENDITURE DURING COSTRUCTION PERIOD		0.000	0.000	(580.440)
	PROFIT/ LOSS BEFORE TAX (E-F) (G)		(2270.470)	(2889.690)	(6081.790)
Less	TAX (H)		0.000	0.000	30.800
	PROFIT/ LOSS AFTER TAX (G-H) (I)		(2270.470)	(2889.690)	(6112.590)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(6112.590)	0.000
	BALANCE CARRIED TO THE B/S		NA	(9002.280)	(6112.590)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1053.240	2342.830	23.600
	TOTAL EARNINGS		1053.240	2342.830	23.600
	IMPORTS
		Raw Materials	2677.750	6587.860	8062.130
		Traded Goods	0.000	1.300	85.190
		Capital Goods	139.150	770.570	6545.370
	TOTAL IMPORTS		2816.900	7359.730	14692.69
	Earnings Per Share (Rs.)		(14.42)	(24.42)	(77.49)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(5.81)	(8.66)	(77.18)
Net Profit Margin (PBT/Sales)	(%)	(6.62)	(10.45)	(86.47)
Return on Total Assets (PBT/Total Assets}	(%)	(4.98)	(5.71)	(13.42)
Return on Investment (ROI) (PBT/Networth)		(0.25)	(0.39)	(0.83)
Debt Equity Ratio (Total Liability/Networth)		4.02	6.46	5.54
Current Ratio (Current Asset/Current Liability)		0.93	0.94	0.59

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- Creditors due small micro enterprises	6.380	44.710	100.730
- Creditors due Others	12009.330	16012.540	24197.110
Total	12015.710	16057.250	24297.840

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	Yes
9]	Name of person contacted	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
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
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

NOTE:

The Registered office of the company has been shifted from Lalbahadur Shastri Marg, Kurla [West], Mumbai 400070, Maharashtra, India to Plot No. B – 19, MIDC, Rajangaon Industrial Area, Ranjangaon, Taluka Shirur, Pune 412210, Maharashtra, India, to the present address w. e. f. 07.12.2006.

OPERATIONS OVERVIEW:

During the year car production at 68,949 numbers represented an increase of about 37% over last year although engine production saw a drop of about 6% at 98,748 numbers due to product mix. Transmission Production at 96,226 numbers represented an increase of about 20% over last year. The year concluded with improvement in the Company’s bottom line and in the Company’s products with the Linea being ranked 2nd (Second) with 113 pp in its segment and the Grande Punto 4th (Fourth) with 153 pp in its highly competitive segment in the syndicated study conducted by J D Power essentially because of the Company’s intrinsic strengths. The Company successfully launched the Grande Punto 90 HP diesel variant and the Linea T-Jet during the year to offer more powerful variants to the Indian customers and added 17 new variants (vehicle code level) and 9 new variants (PWT code level) during the year. The Company’s first of its kind comprehensive customer care program providing a 360° approach to customer service has set standards of customer service for the industry as a result of which the Company moved up from Ninth position in 2009 with a score of 727 to the Second with a score of 801 in the Customer Satisfaction Study conducted by J D Power. In a national customer satisfaction survey conducted by HT-MARS, the Linea and Grande Punto customers were the most satisfied among all competitive owners in their respective price segments. With a view to further improve the reach and accessibility of the Company’s products and services to its customers, the Company’s distributor expanded its network from 100 dealers and 110 Points of Sale (PoS) in April 2010 to 170 dealers and 180 PoS in March 2011. The Company undertook a successful refresh of the Tata Indigo Manza and the Tata Indica in the first quarter of 2011.

FUTURE OUTLOOK:

The Company expects to further improve product quality and safety based on market needs and regulatory compulsions. The Company’s commitment to regulatory and corporate demands will enhance continuous product improvement and new initiatives to address desired consumer market segments under a process of consolidation. With Tata Motors Limited continuing to effectively distribute the Company’s products, The Directors continue to be hopeful, barring unforeseen circumstances, of achieving better results in the current financial year. The Company is exploring opportunities for production of vehicles for Left Hand Drive markets against positive enquiries and for improving product mix and volumes of Tata branded vehicles. The Company is also exploring possible opportunities for supply of engines / powertrains to other automobile manufacturers in India and abroad. Your Company will continue to strive towards improving its all round performance by effective working capital management. The Company plans to establish Fiat Image Points in the nature of Brand Boutiques that will lend greater visibility to the Fiat Brand and it is expected that greater market penetration will be possible with focused customer approach.

CONTINGENT LIABILITY:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Service tax/ Excise duty claims disputed by the company relating to the issues of inappropriate availment of cenvat credit on invoices of service provider	62.190	62.810
Income tax/ TDS claims in respect of which the Company is in appeal	67.57	--
Claims against the Company not acknowledged as debts	20.84	--

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28900PN1997PLC130940
Name of the company	FIAT INDIA AUTOMOBILES LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. B – 19, MIDC, Rajangaon Industrial Area, Ranjangaon, Taluka Shirur, Pune 412210, Maharashtra, India E-mail : anil.joshi@fiapl.com
This form is for	Creation of Charge
Type of charge	· Immovable Share Capital · Any interest in immovable property · Book Debts · Movable Property · Floating Charge · Goodwill · Patent, License under a patent · Trademark · Copyright or license under a copyright · Others: Present and Future Rights in Proj. Docs, Agr. Ins
Particular of charge holder	State Bank of India, Corporate Accounts Group, Voltas House, 23, J.N. Herredia Marg, Ballard Estate, Mumbai-400001, Maharashtra, India E- mail : george.cheriyan@sbi.co.in
Nature of instrument creating charge	Indenture of Mortgage dated July 29, 2009 between Fiat India Automobiles Limited and State Bank of India
Date of instrument Creating the charge	29.07.2009
Amount secured by the charge	Rs. 6000.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Terms of Repayment On demand Margin 1. SBI: (i) Raw Materials (Domestic/ Imported):25% (ii) SIP/FG/Stores and Spares:25% (iii) Book/ Debts (cover period-90 days):35% (iv) Margin for Non-Fund Based Facilities: Nil 2. IDBI Bank (i) Stock:20% (ii) Receivables:20%(upto 90 days) (iii) Margin for Non-Fund based Facilities:15% Extent and Operation of the charge: Mortgaged and charge for the benefit of the INR Facility Lenders.

FIXED ASSETS:

· Lease hold Land

· Building

· Plant and Machinery

· Furniture, Fitting and Office Equipment

· Vehicles

· Computer Software

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. 55.70
UK Pound	1	Rs. 87.55
Euro	1	Rs. 68.85

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		34

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

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.