MIRA INFORM REPORT

Report Date :

24.08.2012

IDENTIFICATION DETAILS

Name :	HALDEX INDIA LIMITED
Registered Office :	B -17, MIDC, Ambad, Nasik – 422010, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.10.1998
Com. Reg. No.:	11–118876
Capital Investment / Paid-up Capital :	Rs.30.000 Millions
CIN No.: [Company Identification No.]	U99999MH1998PLC118876
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Manual and Automatic slack adjusters and automotive components.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 340000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Haldex AB, Sweden. It is an established company having satisfactory track. It has achieved a better increase in its sales turnover and profitability during 2011. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitments. 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.

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. S. Binu
Designation :	General Manager
Contact No.:	91-253-2380091
Date :	23.08.2012

LOCATIONS

Registered Office / Factory 1 :	B-71, MIDC, Ambad, Nasik – 422010, Maharashtra, India
Tel. No.:	91-253-2380091 / 93
Mobile No.:	91-9922335899 (Mr. S. Binu)
Fax No.:	91-253-2380729
E-Mail :	binu.sivanathan@haldex.com a.budhia@haldexindialtd.com vijay.dhanrao@haldex.com amol.borse@haldex.com anand.budhia@haldex.com vishal.shishodia@haldex.com
Website :	http://www.haldexindia.in
Area :	10000 sq. ft.
Location :	Owned
Factory 2 :	B-8, MIDC, Ambad, Nasik – 422010, Maharashtra, India

DIRECTORS

As on 02.07.2011

Name :	Mr. Sunil Prem Nath Kaul
Designation :	Director
Address :	House No. 8. Atul Excellency, Sr. No. 2071'2, Kaspate Vast! Wakad, Pune - 411027, Maharashtra, India
Date of Birth/Age :	13.08.1850
Date of Appointment :	01.04.2010
DIN No.:	00110549
Name :	Mr. Jay C. Longbottom
Designation :	Director
Address :	1525, National Avenue. Rockford IL, Rockford – 61103, United States of America
Date of Birth/Age :	12.07.1953
Date of Appointment :	29.03.2007
DIN No.:	01450311
Name :	Mr. Mahendra Kumar Goyal
Designation :	Director
Address :	18, Anand Farm, 25.3 Km Palam Gurgaon Road, Shri Krishna Chowk, Sector – 22, Gurgaon – 122016,  Haryana, India
Date of Birth/Age :	11.01.1969
Date of Appointment :	30.09.2009
DIN No.:	02605616
Name :	Mr. Andreas Hans Ekberg
Designation :	Director
Address :	Olivias Street, 16, Bjarred – 23742, Sweden
Date of Birth/Age :	28.101969
Date of Appointment :	30.09.2009
DIN No.:	03147223
Name :	Mr. Sandeep Balooja
Designation :	Director appointed in casual vacancy
Address :	S. No.32/2, Rakshak Society, Pimole Nilakh, Pune – 411027, Maharashtra, India
Date of Birth/Age :	09.05.1957
Date of Appointment :	30.09.2009
DIN No.:	02940730
Name :	Mr. Wim Goossens
Designation :	Director appointed in casual vacancy
Address :	140 RTE Dela, Wantinau, Strasbourg – 67009, France
Date of Birth/Age :	24.05.1975
Date of Appointment :	29.03.2007
DIN No.:	03358698

KEY EXECUTIVES

Name :	Mr. S. Binu
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 02.07.2011

Names of Shareholders	No. of Shares
Ansysco Limited, India	1199995
Jagdeep Singh Oberoi	1
Deepak Chopra	1
Ramni Sood	1
Mahendra Kumar Goyal	1
A B Haldex, Sweden	1800000
K.K. Jaggi	1
Total	3000000

As on 02.07.2011

Equity Share Break up (Percentage of Total Equity)

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	60.00
Bodies corporate	4.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Manual and Automatic slack adjusters and automotive components.

Products :

Item Code No. (ITC Code)	Product Description
870839	Slack Adjusters / Self Automated Brake / Consep

· Shock Absorbers 

· Struts Front Forks 

· Water Technologies  

· Piston Rings Casting 

· Gaskets 

· Automotive Filters 

· Industrial Filters 

· Axles 

· Propellor Shafts 

· Exhaust Systems 

· Climate Control 

· Hydraulic Brakes 

· Air Brakes Components 

· Friction Material 

· Machine Building

· Vibration Monitoring Services 

· Sealants 

· Safety Products 

· Adhesives 

· Coatings 

Exports :

Products :

Manual and Automatic slack adjusters and automotive components.

Countries :

· Germany

· Korea

· France

· UK

Imports :

Products :

Spare Parts

Countries :

· Denmark

· China

Terms :

Selling :

Cash / Credit

Purchasing :

Cash / Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Slack Adjusters	Nos	600000	274631
SABA	Nos	600000	486662
CONSEP	Nos	275000	105871

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

· Hyundai

· General Motors

· Fiat

· Maruti-Suzuki

· Mahindra Renault

· Tata Motors

· Ford

· Honda

· Toyota

· Hindustan Motors

No. of Employees :

250 (Approximately)

Bankers :

Kotak Mahindra Bank Limited, 15-16 UGF, Ambadeep Buidling, K G Marg, Connaught Place, New Delhi – 110001, Delhi, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Vehicle loan from banks (repayable within one year Rs. 1.555 Millions (previous year Rs. 1.838 Millions)	1.555	3.422
Term Loan from Bank (repayable within one year Rs. 31.617 Millions (previous year Rs. 25.000 Millions)	39.520	62.500
Working capital facilities	0.000	34.332
Total	41.075	100.254
Securities against Working Capital facilities: The Working Capital facilities are secured by hypothecation of the Company's inventories and receivables. Securities against Term loan from Bank: The Term loan from Bank is secured by an exclusive charge on all piece and parcel of land bearing Plot No B 71 and Plot No D 8 situated in additional Nasik Industrial Area, Taluka Ambad, District Nasik. Vehicle Loans from Banks are secured by hypothecation of assets financed by them. (Rs. In Millions)
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Term loan from Haldex AB, Sweden (includes interest accrued and due Rs.0.572 million (previous year Rs. 2.138 millions) [Repayable within one year Rs.22.318 millions (Pervious Rs.22.570 millions]	22.890	24.708
Total	22.890	24.708

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	Mutha Towers, 5th Floor, Suite No. 8, Opposite Airport Road, Yerwada, Pune – 411 006, Maharashtra, India
PAN.:	AADFP9359C
Holding Company :	Haldex AB, Sweden
Fellow Subsidiaries :	Haldex Limited, United Kingdom Haldex Brake Products AB – Sweden Haldex Brake Products GmbH – Germany Haldex Inc. – USA Haldex Do Brasil Industria e Commercio Limited – Brazil Haldex Europe SAS – France Haldex Hungary KFT – Hungary Haldex Korea Limited – Korea Haldex Vehicle Products (Suzhou) Company Limited – China
Group Companies :	· Anand Automotive Systems Limited · Perfect Cicle India Limited · Victor Gasket India Limited
Investing Company in relation to which the Company is a Joint Venture :	Asia Investment Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- Each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- Each	Rs.30.000 Millions

NOTE:

*Of the above 1,800,000 equity shares are held by Haldex AB, Sweden, the holding company

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		30.000	30.000	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		55.355	61.443	55.751
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		85.355	91.443	85.751
LOAN FUNDS
1] Secured Loans		41.075	100.254	180.379
2] Unsecured Loans		22.890	24.708	26.346
TOTAL BORROWING		63.965	124.962	206.725
DEFERRED TAX LIABILITIES		0.000	5.571	0.000
TOTAL		149.320	221.976	292.476
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		139.797	153.617	159.345
Capital work-in-progress		12.053	9.945	16.152
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		1.256	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	102.686	95.362	135.494
	Sundry Debtors	89.758	50.386	48.832
	Cash & Bank Balances	34.409	23.783	5.053
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	23.324	59.932	66.030
Total Current Assets		250.177	229.463	255.409
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	138.361	108.347	100.497
	Current Liabilities	6.212	3.782	2.865
	Provisions	109.390	58.920	35.068
Total Current Liabilities		253.963	171.049	138.430
Net Current Assets		(3.786)	58.414	116.979
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		149.320	221.976	292.476

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	902.367	600.443	458.312
		Other Income	15.258	8.374	8.471
		TOTAL (A)	917.625	608.817	466.783
Less	EXPENSES
		Cost of Materials	552.075	408.052	315.573
		Personnel Expenses	34.069	30.464	35.609
		Other Expenses	159.168	94.106	106.090
		Prior Period Items	4.324	4.359	0.000
		TOTAL (B)	749.636	536.981	457.272
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		167.989	71.837	9.511
Less	FINANCIAL EXPENSES (D)		8.775	22.533	20.853
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		159.214	49.304	(11.342)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		33.023	13.468	12.914
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		126.191	35.836	(24.256)
Less	TAX (H)		27.564	5.575	(3.816)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		98.627	30.261	(20.440)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		44.775	42.109	62.549
Less	APPROPRIATIONS
		Transfer to General Reserve	9.863	3.026	0.000
		Interim Dividend	30.000	0.000	0.000
		Tax on Interim Dividend	4.983	0.000	0.000
		Proposed Dividend	60.000	21.000	0.000
		Tax on Proposed Dividend	9.733	3.568	0.000
	BALANCE CARRIED TO THE B/S		28.823	44.775	42.109
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	287.771	200.637	190.702
		Commission	1.575	2.100	2.100
		Services	0.357	0.721	0.000
	TOTAL EARNINGS		289.703	203.458	192.802
	IMPORTS
		CIF value of Imports	244.251	192.906	136.355
		Capital Goods	1.717	0.629	1.146
	TOTAL IMPORTS		245.968	193.535	137.501
	Earnings / (Loss) Per Share (Rs.)		32.88	10.09	(6.81)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.45	4.97	(4.38)
Net Profit Margin (PBT/Sales)	(%)	13.98	5.96	(5.29)
Return on Total Assets (PBT/Total Assets}	(%)	32.36	9.35	(5.85)
Return on Investment (ROI) (PBT/Networth)		1.48	0.39	(0.28)
Debt Equity Ratio (Total Liability/Networth)		3.72	3.23	4.03
Current Ratio (Current Asset/Current Liability)		0.99	1.34	1.85

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Total Outstanding dues of creditors others than Micro and small Enterprises	138.361	108.347	100.497
Total	138.361	108.347	100.497

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	Yes
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	Yes
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	No

PERFORMANCE AND OPERATIONS:

The Indian Economy showed strong recovery from the uncertainties and economic slowdown in previous year. Indian Economy (GDP) grew at 8.6% over the year, as against 7.1% in the previous year. During the year 20102011 the sales of medium and Heavy commercial vehicles registered a positive growth of 33% over the previous year 2009-2010 and the sale of light commercial vehicles registered a positive growth of 28% during the same period. Overall, the commercial vehicle industry ended with a positive growth of 30% over the previous year. In 2010-11, production of Passenger Vehicles segment and Two Wheelers segment recorded sound growth with the growth rates being 29 percent and 26 percent, respectively. Three Wheelers segment registered a marginal growth in production at 20 percent over the previous financial year.

Production of Commercial Vehicles grew by 30 percent during the financial year 2010-11 over same period last year. Medium and Heavy Commercial Vehicles grew by 33 percent and Light Commercial Vehicles recorded a growth of 28 percent over the previous financial year. During the financial year, Sales volume were contributed by Self Setting Automatic Brake Adjuster (S-ABA), Condensor-cum-Scparator (Consep), Manual Brake Adjuster and. Worm Wheel. The Company performed well in all product portfolios.

Sales turnover for the financial year ended March 31, 2011 was Rs. 902.00 millions, as compared to Rs. 600.000 millions In the previous financial year, thus reflecting a growth of 31%, as compared to previous financial year and the Profit before Depreciation, Interest and Taxes (PBDIT) was Rs.167.900 millions as compared to Rs. 71.800 millions in the previous year. Net Profit (PAT) for the financial year ended March 31, 2011 was Rs. 98.600 millions, as against Rs. 30.300 millions In the previous financial year. The turnaround in profitability was contributed mainly by reduction of Raw Material cost by way of localization and price reduction: The Company also made effort to bring down the Fixed costs by implementing various cost control measures.

Major thrust of the Company in the near future is to consolidate the market share in domestic market, besides exports to overseas customers and to substantially reduce input cost and overheads. Expansion of Product portfolio and dynamic strategy to tap after market potential will also boost organic growth of the Company.

During the financial year, the Company exported products worth Rs. 287.700 millions, as against Rs. 200.600 millions in the previous financial year, showing a robust growth of 40%. The Company exports its products mainly to its Collaborators and their affiliates.

BUSINESS OUTLOOK:

Determined to consolidate the market position, the Company has made strides to become a-significant player in its product category in Indian market. The rising metal prices and frequent price reductions by the competitors has been a concern for the Company. The Company is taking effective measures by localization of imported matenal and cost control measures to maintain its profitability.

CONTINGENT LIABILITIES IN RESPECT OF:

Rs. In Millions

Particulars	31.03.2011	31.03.2010
Demand/ Show cause notice issued by Joint Director of Foreign Trade in respect of DEPB licenses*	43.958	43.958
Service Tax matters*	3.008	2.281
Bills Discounted with Bank	21.126	137.402
Income Tax matters*	0.461	0.461

* The timing and amount of cash flow will be determined upon settlement of respective cases.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U99999MH1998PLC118876
Name of the company	HALDEX INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	B -71, MIDC, Ambad, Nasik – 422010, Maharashtra, India vishal.shishodia@haldex.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10220467
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Others (Current Assets, Movable and Fixed Assets)
Particular of charge holder	Kotak Mahindra Bank Limited, 15-16 UGF, Ambadeep Buidling, K G Marg, Connaught Place, New Delhi – 110001, Delhi, India rohan.kapoor@kotak.com
Nature of instrument creating charge	Memorandum of deposit of title deeds dated 23.02.2011 Memorandum of constructive delivery of title deeds dated 23.02.2011
Date of instrument Creating the charge	23.02.2011
Amount secured by the charge	Rs.93.300 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction letter /such other rate as may be prescribed by the bank from time to time. Terms of Repayment As per sanctioned terms of the facilities in the Sanction Letters. Margin The Company shall maintain such margin as may be specified by the bank from time to time. Extent and Operation of the charge As per the Supplemental Deed of Hypothecation dated 10.09.2010
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First Charge on the Current and Movable Fixed Assets of the borrower both present and future. Exclusive charge on all that piece and parcel of land bearing plot No. D-8 admeasuring 3320 square meters in additional Nashik Industrial Area situated at Ambad, within the limits of Nashik Municipal corporation, together with all buildings, structures and plant and machinery, if any, affixed to the earth or permanently affixed to something attached to the earth.
Date of instrument modifying the charge	30.10.2010
Particulars of the present modification	Credit Facilities of Rs. 93.300 Millions is now secured by Exclusive charge on All that piece and parcel of land bearing Plot No. B-71 admeasuring 2946 square meters situated in additional Nashik Industrial Area, Taluka Ambad, District Nashik and Plot No. D-8 admeasuring 3320 square meters in additional Nashik Industrial Area situated at Ambad, within the limits of Nashik Municipal Corporation.

FIXED ASSETS:

• Leasehold Land
• Buildings – Factory
• Plant and Machinery
• Furniture and Fixtures
• Vehicles
• Computer (Software)
• Technical Fees

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.55.19
UK Pound	1	Rs.87.65
Euro	1	Rs.69.16

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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		47

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.