MIRA INFORM REPORT

Report Date :

01.02.2012

IDENTIFICATION DETAILS

Name :	MAGNETI MARELLI UM ELECTRONIC SYSTEMS PRIVATE LIMITED
Registered Office :	Suites No. 301-304, Plot No. 9, Copia Corporate Suites, Jasola District Centre, New Delhi-110044
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	31.10.2008
Com. Reg. No.:	55-184578
Capital Investment / Paid-up Capital :	Rs.260.000 Millions
CIN No.: [Company Identification No.]	U32204DL2008PTC184578
TAN No.: [Tax Deduction & Collection Account No.]	DELM16782D
PAN No.: [Permanent Account No.]	AAFCM8906R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and sale of body computers, instrument clusters, electronic equipment and other products including telemactics, navigation etc.
No. of Employees :	Not Available

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 670000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 :	Suites No. 301-304, Plot No. 9, Copia Corporate Suites, Jasola District Centre, New Delhi-110044, India
Tel. No.:	91-11-43131415
Fax No.:	91-11-43131444
E-Mail :	pankaj.gupta@magnetimarelli.com
Corporate Office :	UM House, Plot No. 35 P, Sector 44, Gurgaon-122002, Haryana, India
Tel. No.:	91-124-4326555
Fax No.:	91-124-4326500
E-Mail :	kk.bhambri@the-umgroup.com
Factory:	Plot No. 402, Sector 8, IMT Maneswar, Gurgaon-122051, Haryana, India
Tel No.:	91-124-4780600
Fax No.:	91-124-4780630

DIRECTORS

As on 28.02.2011

Name :

Mr. Virender Kumar Chhbra

Designation :

Director

Address :

60, Prakriti Marg, Mehraula, Gurgaon Road, Delhi-110030, India

Date of Birth/Age :

11.06.1949

Date of Appointment :

29.10.2008

Din No.:

00096937

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	U51211UP1972PTC003620	UNITECH ENGINEERS PRIVATE LIMITED	Director	09-10-72	09-10-72	-	Strike off	NO
2	U34300DL1986PLC023498	UNITECH MACHINES LIMITED	Managing director	01-07-08	28-02-86	-	Active	NO
3	U74899DL1994PTC061511	SAB HOLDINGS INDIA PRIVATE LIMITED	Director	14-09-94	14-09-94	-	Active	NO
4	U72200DL1998PLC096636	UNITECH SOFTWARE SOLUTIONS LIMITED	Director	12-10-98	12-10-98	-	Active	NO
5	L30103HR1983PLC026142	OMAX AUTOS LIMITED	Director	01-03-02	01-03-02	-	Active	NO
6	U92132DL2002PLC116746	UNITECH INDRAPRASTHA TV LIMITED	Director	28-08-02	28-08-02	-	Active	NO
7	U15209DL2003PLC121231	GOOD-DAY FOODS LIMITED	Director	09-07-03	09-07-03	-	Active	NO
8	U51909DL1996PTC075727	TECHNO TREXIM (INDIA) PRIVATE LIMITED	Director	10-07-03	10-07-03	-	Active	NO
9	U74140DL2005PTC138859	UM CORPORATE AND MANAGEMENT SERVICES PRIVATE LIMITED	Director	19-07-05	19-07-05	-	Active	NO
10	U27310PB1989PLC008991	RICO CASTINGS LIMITED	Director	29-09-07	28-06-07	10-06-09	Active	NO
11	U45200HR2008FTC037878	UNITECH NOHMI FIRE PROTECTION SYSTEM PRIVATE LIMITED	Managing director	22-07-08	29-04-08	-	Active	NO
12	U32204DL2008PTC184578	MAGNETI MARELLI UM ELECTRONIC SYSTEMS PRIVATE LIMITED	Director	31-10-08	31-10-08	-	Active	NO
13	U35990DL2010PTC202385	ALPHA MAIER PRIVATE LIMITED	Director	07-05-10	07-05-10	15-12-11	Active	NO
14	U40101HR2010PLC040909	OMAX ENGINEERING SERVICES LIMITED	Director	15-07-10	15-07-10	-	Active	NO
15	U40106DL2010PTC206775	UM SOLAR POWER PRIVATE LIMITED	Director	06-08-10	06-08-10	-	Active	NO
16	U40106DL2010PLC210042	UM POWER LIMITED	Director	01-11-10	01-11-10	-	Active	NO
17	U40200DL2011PLC218201	UM URJA LIMITED	Director	28-04-11	28-04-11	-	Active	NO

Name :

Mr. Sushant Chhbra

Designation :

Director

Address :

60, Prakriti Marg, Mehraula, Gurgaon Road, Delhi-110030, India

Date of Birth/Age :

26.06.1974

Date of Appointment :

29.10.2008

Din No.:

00096771

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	U74899DL1994PTC061511	SAB HOLDINGS INDIA PRIVATE LIMITED	Director	14-09-94	14-09-94	-	Active	NO
2	U74899DL1995PTC072548	TECHNO AUTO COMPONENTS (INDIA) PRIVATE LIMITED	Director	19-09-95	19-09-95	-	Active	NO
3	U51909DL1996PTC075727	TECHNO TREXIM (INDIA) PRIVATE LIMITED	Director	24-01-96	24-01-96	-	Active	NO
4	U72200DL1998PLC096636	UNITECH SOFTWARE SOLUTIONS LIMITED	Director	12-10-98	12-10-98	-	Active	NO
5	U72200DL2000PTC106890	UM INFRATEL PRIVATE LIMITED	Director	19-07-00	19-07-00	-	Active	NO
6	U92132DL2002PLC116746	UNITECH INDRAPRASTHA TV LIMITED	Director	28-08-02	28-08-02	-	Active	NO
7	U15209DL2003PLC121231	GOOD-DAY FOODS LIMITED	Director	09-07-03	09-07-03	-	Active	NO
8	U34300DL1986PLC023498	UNITECH MACHINES LIMITED	Managing director	01-10-09	03-09-04	-	Active	NO
9	U74999DL2004PTC129474	UNIMECH INVESTMENTS PRIVATE LIMITED	Director	28-09-04	28-09-04	-	Active	NO
10	U74899DL1972PLC108312	TRADING ENGINEERS INTERNATIONAL LIMITED	Director	15-10-04	15-10-04	-	Active	NO
11	U50300DL2004PTC131701	ATL AUTOCOMP PRIVATE LIMITED	Director	30-12-04	30-12-04	22-02-07	Active	NO
12	U45201DL2005PTC136213	UM INFRASTRUCTURE AND DEVELOPERS PRIVATE LIMITED	Director	13-05-05	13-05-05	-	Active	NO
13	U74140DL2005PTC138859	UM CORPORATE AND MANAGEMENT SERVICES PRIVATE LIMITED	Director	19-07-05	19-07-05	-	Active	NO
14	U45101DL2006PLC148306	UM ARCHITECHTURES AND CONTRACTORS LIMITED	Director	30-03-06	30-03-06	30-04-08	Active	NO
15	U74899DL1978PLC093797	ALPHA TOYO LIMITED	Director	29-09-07	27-01-07	-	Active	NO
16	U29110DL2007PTC171641	TR TECHNICAL RESOURCES INDIA PRIVATE LIMITED	Director	19-12-07	19-12-07	01-05-10	Active	NO
17	U32204DL2008PTC184578	MAGNETI MARELLI UM ELECTRONIC SYSTEMS PRIVATE LIMITED	Director	31-10-08	31-10-08	-	Active	NO
18	U45200HR2008FTC037878	UNITECH NOHMI FIRE PROTECTION SYSTEM PRIVATE LIMITED	Director	10-06-09	19-11-08	-	Active	NO
19	U50401JK2004PTC002447	J AND K AUTOMOBILES PRIVATE LIMITED	Director	28-09-10	19-11-09	-	Active	NO
20	U35990DL2010PTC202385	ALPHA MAIER PRIVATE LIMITED	Director	07-05-10	07-05-10	-	Active	NO
21	U40106DL2010PTC206775	UM SOLAR POWER PRIVATE LIMITED	Director	06-08-10	06-08-10	-	Active	NO
22	U40106DL2010PLC210042	UM POWER LIMITED	Director	01-11-10	01-11-10	-	Active	NO
23	U31500DL2010PTC210780	UM GREEN LIGHTING PRIVATE LIMITED	Director	26-11-10	26-11-10	-	Active	NO
24	U40200DL2011PLC218201	UM URJA LIMITED	Director	28-04-11	28-04-11	-	Active	NO

Name :

Mr. Saju Mookken

Designation :

Director

Address :

6411, F-6, Alok Vihar 2, Sector 50, Noida-201301, Uttar Pradesh, India

Date of Birth/Age :

25.05.1969

Date of Appointment :

16.01.2009

Din No.:

01644940

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U40300DL2007PTC169579	MAGNETI MARELLI POWERTRAIN INDIA PRIVATE LIMITED	Director	17-04-09	18-10-07	Active	NO
2	U31500DL2008PLC174123	MAGNETI MARELLI MOTHERSON AUTO SYSTEM LIMITED	Director	14-08-09	16-04-08	Active	NO
3	U51109DL2008PTC178458	MAGNETI MARELLI SKH EXHAUST SYSTEMS PRIVATE LIMITED	Director	22-05-08	22-05-08	Active	NO
4	U34300DL2008PTC178680	SKH MAGNETI MARELLI EXHAUST SYSTEMS PRIVATE LIMITED	Director	27-05-08	27-05-08	Active	NO
5	U74900PN2008PTC132425	ENDURANCE MAGNETI MARELLI SHOCK ABSORBERS (INDIA) PRIVATE LIMITED	Director	14-07-08	14-07-08	Active	NO
6	U32204DL2008PTC184578	MAGNETI MARELLI UM ELECTRONIC SYSTEMS PRIVATE LIMITED	Nominee director	16-01-09	16-01-09	Active	NO
7	U74120DL2008PTC186054	FIAT PARTECIPAZIONI INDIA PRIVATE LIMITED	Director	08-03-10	01-04-09	Active	NO
8	U34102DL2009FTC195890	MAGNETI MARELLI INDIA PRIVATE LIMITED	Managing director	26-11-09	10-11-09	Active	NO

Name :

Giuseppe Rosso

Designation :

Nominee Director

Date of Appointment :

16.01.2009

Din No.:

02385624

KEY EXECUTIVES

Name :	Fabrizio Righetti
Designation :	Manager
Pan No.:	ATOPR9586R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.02.2011

Names of Shareholders	No. of Shares
Magneti Marelli SPA, Italy	13260000
Unitech Machines Limited, India	12734900
Sushant Chhabra	5100
Total	26000000

As on 28.02.2011

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]	51.00
Bodies corporate	48.96
Directors or relatives of directors	0.04
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and sale of body computers, instrument clusters, electronic equipment and other products including telemactics, navigation etc.

PRODUCTION STATUS [AS ON 31.12.2010]

Particulars	Unit	Installed Capacity	Actual Production
Instrumental Cluster	Nos.	144000	34496*
Body Computer and TRF	Nos.	576000	537389*

NOTE: * Include 494 Nos. of Instrumental Cluster and 1723 Nos. of Body Computer and TRF that were used for testing and for sales promotion.

GENERAL INFORMATION

Bankers :

Andhra Bank, M-35, Connaught Circus, New Delhi-110001, India

Facilities :

Secured Loan	As on 31.12.2010 [Rs. in Millions]	As on 31.12.2009 [Rs. in Millions]
From Banks
Term Loan	85.400	0.000
Working Capital Loan	5.660	0.000
Interest accrued and due on term loan	0.645	0.000
Total	91.705	0.000

NOTE: Term loan and working capital loan from Andhra bank Limited are secured by hypothecation of all current assets including inventories and book debts and all fixed assets, both present and future. Amount due within one year Rs.22.213 millions.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	7^th Floor, Building No. 10, Tower B, DLF Cyber City Complex, Gurgaon-122002, Haryana, India
Pan No.:	AABFD2095B
Holding Company:	Magneti Marelli SPA
Fellow Subsidiaries:	· Magneti Marelli Sistemas Automotivos Ind, Brasil · Magneti Marelli Electronic S.L, Espana, Spain · Magneti Marelli India Private Limited · Magneti Marelli S.P.A, France · Magneti Marelli Chine, China · Magneti Marelli GMBH, Germany

CAPITAL STRUCTURE

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
26000000	Equity Shares	Rs.10/- each	Rs.260.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
26000000	Equity Shares	Rs.10/- each	Rs.260.000 Millions

NOTE:

13260000 equity shares are held by Magneti Marelli SPA, Italy the holding company and 12740000 equity shares are held by Unitech Machines Limited and its affiliates.

As on 28.02.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
46000000	Equity Shares	Rs.10/- each	Rs.460.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
26000000	Equity Shares	Rs.10/- each	Rs.260.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		260.000	130.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		(92.491)	(33.770)
NETWORTH		167.509	96.230
LOAN FUNDS
1] Secured Loans		91.705	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		91.705	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		259.214	96.230
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		146.297	98.247
Capital work-in-progress		13.633	8.723
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CAPITAL ADVANCES		6.928	7.357
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	95.684	51.146
	Sundry Debtors	59.955	0.276
	Cash & Bank Balances	4.031	22.775
	Other Current Assets	0.037	0.088
	Loans & Advances	69.932	15.486
Total Current Assets		229.639	89.771
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	129.207	102.341
	Other Current Liabilities	1.880	4.936
	Provisions	6.196	0.591
Total Current Liabilities		137.283	107.868
Net Current Assets		92.356	(18.097)
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		259.214	96.230

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009
	SALES
		Income	286.850	0.248
		Other Income	NA	6.434
		TOTAL (A)	NA	6.682
Less	EXPENSES
		Cost of Materials		5.845
		Manufacturing Expenses		2.319
		Employees Remunerations and Benefits	NA	15.191
		Administrative and Other Expenses		14.347
		Selling and Distribution Expenses		0.266
		TOTAL (B)	NA	37.968
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	(31.286)
Less	FINANCIAL EXPENSES (D)		NA	0.172
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(38.150)	(31.458)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.570	2.197
	PROFIT BEFORE TAX (E-F) (G)		(58.720)	(33.655)
Less	TAX (H)		0.000	0.115
	PROFIT AFTER TAX (G-H) (I)		(58.720)	(33.770)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	140.594	0.024
	IMPORTS
		Raw Materials	239.620	51.007
		Capital Goods	28.557	57.852
	TOTAL IMPORTS		268.177	108.859
	Earnings Per Share (Rs.)		(2.85)	(3.17)

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009
PAT / Total Income	(%)	NA	(505.39)
Net Profit Margin (PBT/Sales)	(%)	(20.47)	(13570.56)
Return on Total Assets (PBT/Total Assets}	(%)	(15.62)	(17.90)
Return on Investment (ROI) (PBT/Networth)		(0.35)	(0.35)
Debt Equity Ratio (Total Liability/Networth)		1.37	1.12
Current Ratio (Current Asset/Current Liability)		1.67	0.83

LOCAL AGENCY FURTHER INFORMATION

NOTE: The registered office of the company has been shifted from level 4, Rectangle No. 1, District Commercial Complex, D4, Saket, New Delhi-110017, India to the present address w.e.f. 30.09.2009.

BACKGROUND

Subject was incorporated in India on October 31, 2008 to carry on the business of manufacturing and sale of body computers, instrument clusters, electronic equipment and other products including telemactics, navigation etc. for automobile manufactures. The Company was incorporated as a joint venture company with 13,260,000 equity shares held by Magneti Marelli S.P.A, Italy (the holding company) and 12,740,000 equity shares held by Unitech Machines Limited and its affiliates.

The accompanying financial statements reflect the results of the activities undertaken by the Company during the year ended December 31, 2010.

CAPITAL:

During the reporting year, the company made fresh allotment of shares on 02/06/2010. A total 13,000,000 Equity Shares of Rs. 10/- each were issued to allottees. The 6,630,000 Equity Shares of Rs. 10/- each amounting to Rs. 66.300 Millions was issued to Magneti Marelli S.P.A., Italy whereas 6,370,000 Equity Shares of Rs. 10/-each amounting to Rs. 63.700 Millions were issued to Unitech Machines Limited. The total paid up share capital of the company, after allotment made on 02/06/2010, became 26 Crores.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10224889
Corporate identity number of the company	U32204DL2008PTC184578
Name of the company	MAGNETI MARELLI UM ELECTRONIC SYSTEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Suites No. 301-304, Plot No. 9, Copia corporate Suites, Jasola District Centre, New Delhi-110044, India
Type of charge	Book Debts Movable Property [not being pledge] Floating Charge Others
Particular of charge holder	Andhra Bank, M-35, Connaught Circus, New Delhi-110001, India
Email	bmdel084@andhrabank.co.in
Nature of description of the instrument creating or modifying the charge	Composite agreement Dated 28.07.2011
Date of instrument Creating the charge	28.07.2011
Amount secured by the charge	Rs.172.300 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest OCC - Interest shall be charged Base Rate plus 4.25% i.e.14.50% at presently with monthly rests. Interest on other credit facilities as per sanction terms. Terms of Repayment Payable on demand and Repayment as per sanction terms and bank norms. Margin Term Loan: Overall Margin 30% Open Cash Credit: 25% on Stock And 25% on Book Debts Not Older Than 90 Days Bank Guarantee: Cash Margin 10% FDBP/FUBD/REBA/AACB – Nil Extent and Operation of the charge The hypothecated assets to secure following credit limits sanctioned by Andhra Bank to Magneti Marelli Um Electronic Systems Private Limited a) Cash Credit (Renewal) Rs.31.900 Millions (sub limit of PCFC of Rs.31.900 Millions) b) Term Loan (Existing) Rs.85.400 Millions c) Bank Guarantee (Renewal) Rs.5.000 Millions d) FDBP/FUBD/REBA/AACB (Fresh) Rs.50.000 Millions
Short particulars of the property charged	Hypothecation of The Fixed Assets For Term Loan Situated At Plot No 402, Sector - 8, IMT, Manesar, Gurgaon, Haryana. Extension of 2nd Charge on The Current Assets of The Company. Hypothecation of RM, sip, FG, stores and book debts for open cash credit situated at Plot No. 402, sector - 8, IMT Manesar, Gurgaon Haryana. Extension of 2nd charge on the fixed assets of the company. Bank guarantee: against the counter guarantee of the company. First charge on current assets of the company such as stock or raw materials, work in process, finished goods and packing materials, ments for exports.
Particulars of the present modification	By this modification of charge the aggregate credit limits stands enhanced from Rs.122.300 Millions to Rs.172.300 Millions to secure following credit limits as: - a) Cash Credit (Renewal) Rs.31.900 Millions, (sub limit of PCFC of Rs.31.900 Millions), b) Term Loan (Existing) Rs.85.400 Millions, c) Bank Guarantee (Renewal) Rs.5.000 Millions, d) FDBP/FUBD/REBA/AACB (Fresh) Rs.50.000 Millions The charge on the assets. Other terms and conditions remain same.

FIXED ASSETS:

· Plant and Machinery

· Office Equipments

· Furniture and Fixtures

· Vehicles

· Technical Know-How

· 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 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.49.68
UK Pound	1	Rs.78.17
Euro	1	Rs.65.52

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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	-

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