MIRA INFORM REPORT

Report Date :

08.02.2012

IDENTIFICATION DETAILS

Name :	TATA TOYO RADIATOR LIMITED
Registered Office :	Survey No. 235/245, Village Hinjewadi, Taluka Mulshi, District Pune-411027, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.08.1997
Com. Reg. No.:	11-110139
Paid-up Capital :	Rs. 320.000 Millions
CIN No.: [Company Identification No.]	U99999PN1997PLC110139
TAN No.: [Tax Deduction & Collection Account No.]	PNET01176A
PAN No.: [Permanent Account No.]	AAACT5566F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Radiators and Aluminum Heat Exchangers
No. of Employees :	1200 [Office + Factory] Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 3500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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 – 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

INFORMATION PARTED BY

Name :	Mr. Dipankar Banerjee
Designation :	Vice President - Finance
Contact No.:	91-9881715495

LOCATIONS

Registered Office/Factory :	Survey No. 235/245, Village Hinjewadi, Taluka Mulshi, District Pune - 411027, Maharashtra, India
Tel. No.:	91-20- 66524100/153/181/22932196/66524201
Mobile No.	91-9881715495 (Mr. Dipankar Banerjee)
Fax No.:	91-20-2932196/22724096
E-Mail :	ulkesh.shah@tatatoyo.com tatatoyo@tatatoyo.com dopankar.banerjee@tatatoyo.com tanuja.sardesai@tatatoyo.com dipankar.banerjee@tatatoyo.com
Website :	www.tatatoyo.com
Area:	10,000 sq. ft.
Location :	Owned

DIRECTORS

As On 31.03.2011

Name :

Mr. Arvind Hari Goyal

Designation :

Director

Address :

Flat No. 6, Pranti Apartment, Baner Road, Ganesh Khind, Pune, Maharashtra, India

Date of Birth/Age :

13.10.1957

Date of Appointment :

30.12.2008

DIN No.:

02300813

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	U34300PN1999PLC014564	MUBEA SUSPENSION INDIA LIMITED	Additional director	11/4/2008	11/4/2008	6/5/2008	Active	NO
2	U34300PN2004PTC019215	FAURECIA INTERIOR SYSTEMS INDIA PRIVATE LIMITED	Director	11/9/2009	25/12/2008	1/12/2009	Active	NO
3	U99999PN1997PLC110139	TATA TOYO RADIATOR LIMITED	Director	25/07/2009	30/12/2008	-	Active	NO
4	U34300PN2000PLC015253	TACO COMPOSITES LIMITED	Director	27/07/2009	30/12/2008	-	Active	NO
5	U93090MH2007PLC173035	TATA INDUSTRIAL SERVICES LIMITED	Director	12/8/2011	18/06/2010	-	Active	NO

Name :

Mr.Amitab Maki

Designation :

Director

Name :

Mr. Praveen P. Kadles

Designation :

Chairman

Address :

224, NCPA Appartment, Nariman Point, Mumbai, Maharashtra, India

Date of Birth/Age :

21.01.1957

Date of Appointment :

01.04.2009

DIN No.:

00016814

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	U45200MH1989PLC050444	SHEBA PROPERTIES LIMITED	Director	27/04/1996	27/04/1996	18/09/2007	Active	NO
2	U34101JH1993PLC005546	TATA CUMMINS LIMITED	Director	24/01/1997	24/01/1997	26/10/2007	Active	NO
3	U72200PN1994PLC013313	TATA TECHNOLOGIES LIMITED	Director	4/2/1997	4/2/1997	-	Active	NO
4	U50300MH1997PLC149349	TATA MOTORS INSURANCE BROKING AND ADVISORY SERVICES LIMITED	Director	15/04/1998	15/04/1998	30/06/2011	Active	NO
5	U85110KA1998PLC024588	TELCO CONSTRUCTION EQUIPMENT COMPANY LIMITED	Nominee director	30/12/1998	30/12/1998	4/8/2008	Active	NO
6	U29113PN1994FLC139153	CUMMINS TECHNOLOGIES INDIA LIMITED	Director	14/06/2000	14/06/2000	27/02/2007	Active	NO
7	L28920MH1945PLC004520	TATA MOTORS LIMITED	Whole-time director	11/7/2006	31/01/2001	18/09/2007	Active	NO
8	U51909MH1957PLC010942	TATA SERVICES LIMITED	Director	14/06/2001	14/06/2001	26/09/2007	Active	NO
9	U67120MH1994PLC080918	TATA SECURITIES LIMITED	Director	17/04/2006	17/04/2006	-	Active	NO
10	U65923MH2006PLC162503	TATA MOTORS FINANCE LIMITED	Director	1/6/2006	1/6/2006	-	Active	NO
11	U67190MH2005PLC153471	RELIGARE ASSET MANAGEMENT COMPANY LIMITED	Director	29/09/2006	27/07/2006	4/12/2008	Active	NO
12	L65990MH1991PLC060670	TATA CAPITAL LIMITED	Managing director	18/09/2007	13/04/2007	-	Active	NO
13	U65923MH2007PLC176158	TATA CAPITAL MARKETS LIMITED	Director	26/11/2007	26/11/2007	-	Active	NO
14	U74999MH2002PLC135640	E-NXT FINANCIALS LIMITED	Director	17/09/2008	18/02/2008	-	Active	NO
15	U67190MH2008PLC187552	TATA CAPITAL HOUSING FINANCE LIMITED	Director	15/10/2008	15/10/2008	-	Active	NO
16	U63040MH2008PLC187559	TC TRAVEL AND SERVICES LIMITED	Director	15/10/2008	15/10/2008	-	Active	NO
17	U51109MH2009PLC189466	T SEC COMMODITIES BROKING LIMITED	Director	9/1/2009	9/1/2009	28/10/2010	Active	NO
18	U34100MH1995PLC093733	TATA AUTOCOMP SYSTEMS LIMITED	Director	29/09/2009	18/03/2009	-	Active	NO
19	U74999DL2002PTC117357	INTERNATIONAL ASSET RECONSTRUCTION COMPANY PRIVATE LIMITED	Nominee director	20/07/2009	21/03/2009	-	Active	NO
20	U99999PN1997PLC110139	TATA TOYO RADIATOR LIMITED	Director	25/07/2009	1/4/2009	-	Active	NO
21	U67190TN2010PLC076545	TATA INFRASTRUCTURE CAPITAL LIMITED	Director	9/7/2010	9/7/2010	28/10/2010	Active	NO
22	U65921TN2006PLC061442	T T HOLDINGS AND SERVICES LIMITED	Director	23/09/2011	25/08/2010	-	Active	NO
23	U67100MH2010PLC210201	TATA CAPITAL FINANCIAL SERVICES LIMITED	Director	5/9/2011	19/11/2010	-	Active	NO
24	U65923MH2011PLC222430	TATA CLEANTECH CAPITAL LIMITED	Director	27/09/2011	27/09/2011	-	Active	NO

Name :

Mr. Yasutomo Nakaie

Designation :

Director

Address :

1-02-103 Kamicho, Kohokuku, Yokohama Shi, Kangawa, Predecture – 2220033, Japan

Date of Birth/Age :

01.06.1951

Date of Appointment :

28.07.2006

DIN No.:

00794641

Name :

Mr. Subu Kava

Designation :

Director

Name :

Mr. Tashiakai Saseike

Designation :

Director

Name :

Mr. R.S. Thakur

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Dipankar Bannerjee
Designation :	Vice President Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 14.05.2010

Names of Shareholders	No. of Shares
Tata Auto Comp Systems Limited - India	16319400
T Rad Company Limited - Japan	12880000
Mitsubishi Corporation Unimetals Limited - Japan	2800000
Tata Auto Comp Systems Limited jointly with Mr. Ajay Sharma – India	300
Tata Auto Comp Systems Limited Jointly with Mr. Noshir Driver – India	100
Tata Auto Comp Systems Limited jointly with Mr. R R Shastri – India	100
Tata Auto Comp Systems Limited Jointly with Mr. R S Thakur – India	100
Total	32000000

As On 14.05.2010

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]	49.00
Bodies corporate	51.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Radiators and Aluminum Heat Exchangers

Products :

Product Description	ITC Code
Aluminium Radiators and Inter Coolers	870859100

PRODUCTION STATUS (As On 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Aluminium Radiators	Nos	1350000	1062618
Aluminium Intercoolers	Nos	450000	312335
Heater Cores	Nos	750000	618305

GENERAL INFORMATION

No. of Employees :

1200 [Office + Factory] Approximately

Bankers :

• State Bank of India - Industrial Finance Branch, Tara Chambers, 1^st Floor, Old Pune Mumbai Road - Wakdewadi, Pune – 411003, Maharashtra, India
• The Bank of Tokyo Mitsubishi UF Limited - Hoechst House,15^th Floor, Nariman Point, Mumbai – 400021, Maharashtra, India
• Indian Bank - Deccan Gymkhana Branch, Pune – 411004, Maharashtra, India
• ICICIC Bank, Bungarden Branch
• HDFC Bank, Bandarkar Street Branch

Facilities :

Cash Credit : Rs. 350.000 Millions (State Bank of India)

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loans from Bank (secured by way of hypothecation of plant and machinery (first charge) and equitable mortgage on pari passu basis on immovable property of the company) [amount repayable within one year Rs. 107.500 millions (previous year Rs. 107.500 millions]	268.750	376.250
Working Capital Facilities form Banks [Secured by way of hypothecation charge on entire current assets of the company on pari passu basis and second charge on fixed assets (hypothecation and equitable mortgage) of the company]	--	41.084
Total	268.750	417.334

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Buyers Credit	25.831	26.485
Total	25.831	26.485

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	“Mutha Towers” 5^th Floor, Suite No. 8, Airport Road, Yerwada, Pune – 411006, Maharashtra, India
Pan No. :	AAEFP5579P
Holding Company :	Tata Auto Comp Systems Limited CIN No.: - U34100MH1995PLC093733
Associates/Subsidiaries (As On 31.03.2010) :	· T. Rad Company Limited · Automotive Composite Systems (International) Limited · Automotive Stamping and Assemblies Limited · Mitsubhishi Corporation Unimetals Limited · Tata Yazaki Autocomp Private Limited · Tata Visteon Automative Private Limited (up to 15.02.2010) · Tata Ficosa Automative Systems Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
32,000,000	Equity Shares	Rs. 10/- each	Rs. 320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32,000,000	Equity Shares	Rs. 10/- each	Rs. 320.000 Millions

Notes: Out of the above, 16320000 Equity Share are held by Tata Auto Comp Systems limited, 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		320.000	320.000	320.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		564.255	437.676	350.933
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		884.255	757.676	670.933
LOAN FUNDS
1] Secured Loans		361.121	268.750	417.334
2] Unsecured Loans		25.652	25.831	26.485
TOTAL BORROWING		386.773	294.581	443.819
DEFERRED TAX LIABILITIES		62.532	63.844	73.639
TOTAL		1333.560	1116.101	1188.391
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		968.770	859.770	913.990
Capital work-in-progress		161.379	73.652	66.365
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	460.452	260.357	217.643
	Sundry Debtors	497.523	463.798	318.858
	Cash & Bank Balances	45.671	101.037	29.619
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	230.562	139.693	190.473
Total Current Assets		1234.208	964.885	756.593
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		565.133	400.119
	Other Current Liabilities	918.295	50.455	50.564
	Provisions	112.502	166.618	97.874
Total Current Liabilities		1030.797	782.206	548.557
Net Current Assets		203.411	182.679	208.036
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1333.560	1116.101	1188.391

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5078.174	4109.210	3122.943
		Other Income	33.425	33.505	32.010
		TOTAL (A)	5111.599	4142.715	3154.953
Less	EXPENSES
		Materials consumed and manufacturing expenses	3612.971	2749.570	2105.584
		Personnel cost	278.918	205.475	176.734
		Administrative and other expenses	503.688	421.260	375.778
		Prior period items	0.000	0.000	0.000
		TOTAL (B)	4395.577	3376.305	2658.096
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		716.022	766.410	496.857
Less	FINANCIAL EXPENSES (D)		37.960	36.871	63.462
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		678.062	729.539	433.395
Less/ Add	DEPRECIATION/ AMORTISATION (F)		165.118	172.334	133.291
	PROFIT BEFORE TAX (E-F) (G)		512.944	557.205	300.104
Less	TAX (I)		162.476	189.674	106.784
	PROFIT AFTER TAX (G-I) (J)		350.468	367.531	193.320
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		284.307	234.317	210.083
Less	APPROPRIATIONS
		Interim dividend	128.000	128.000	64.000
		Dividend tax on interim dividend	21.259	21.754	10.877
		Proposed dividend	64.000	112.000	64.000
		Dividend tax on the above	10.630	19.034	10.877
		Transfer to general reserve	35.047	36.753	19.332
	BALANCE CARRIED TO THE B/S		375.839	284.307	234.317
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	NA	80.967	64.431
	TOTAL EARNINGS		NA	80.967	64.431
	IMPORTS
		Raw Materials	NA	176.079	330.794
		Stores, Spares and Components	NA	19.651	57.102
		Capital Goods	NA	33.511	128.725
		Others	NA	9.182	0.572
	TOTAL IMPORTS		NA	238.423	517.193
	Earnings Per Share (Rs.)		10.95	11.49	6.04

Expected Sales (2011-12) : Rs. 5700.000 Millions

The above information has been parted by Mr. Dipankar Bannerjee [Vice President - Finance]

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.86	8.87	6.13
Net Profit Margin (PBT/Sales)	(%)	10.10	13.56	9.62
Return on Total Assets (PBT/Total Assets}	(%)	23.28	30.54	17.96
Return on Investment (ROI) (PBT/Networth)		0.58	0.74	0.45
Debt Equity Ratio (Total Liability/Networth)		1.60	1.42	1.48
Current Ratio (Current Asset/Current Liability)		1.20	1.23	1.38

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	-
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last two years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	Yes
Details of sister concerns	-
Major Suppliers	Yes
Major Customers	Yes
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	No
Incorporation details, if applicable	-
Last accounts filed at ROC	-
Major Shareholders, if applicable	-

Contingent Liabilities:

Rs. In Millions

Sr. No	Particulars	As at 31.03.2010
a.	Bills Discounted (with recourse)	838.413
b.	Claims against the Company, not acknowledged as Debts	--
c.	Sales Tax Matters	2.512
d.	Income Tax matters	32.974
e.	Customs Duty Matters	1.605
f.	Excise related matters	0.951

Form 8:

Name of the company	TATA TOYO RADIATOR LIMITED
Presented By	Indian Bank, Deccan Gymkhana Branch, Pune-411004, Maharashtra, India
1) Date and description of instrument creating the change	Agreement of Irrevocable Letter of Credit (0-48) and Agreement for hypothecation of goods received under advance payment of guaranteed/LC etc. (0-73) both the documents dated 19.02.2005 (Both the documents to create a SINGLE CHARGE).
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 5.000 millions (Rupees Five Millions only)
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All the goods now tying or hereafter stored at the godowns and yards and premises in 235/245, Hinjewadi, or lying at any other godown, where so ever or in respect of which the Borrower can make any deposit, pledge, hypothecation or charge where ever they may be and br received at all times and from time to time as per arrangements herein entered, the borrower hereby agrees to hypothecate goods and therefore the me are hereby hypothecated and charged to the Bank by way of first charge and the term word ‘goods’ occurring in the clauses in this agreement shall wherever the contexdt so require mean and include goods covered by the documents of title to goods covered by such documents.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest, 4.QO%aboye BPLR with minimum of 15% pa. or at such rates stipulated by RBl / Bank to be calculated on a daily balance and charged against the account of the borrower on the last day of the english ‘- calendar quarter so long as the account will remain and shall be paid by the Borrower on demand by the bank. Other terms and conditions as per clause Os. 1 to 15 of Agreement of Irrevocable Letter of Credit and causes Nos. to 26 of Agreement of hypothecation of goods received under advance payment of guarantee/LC etc.
5) Name and Address and description of the person entitled to the charge.	Indian Bank, Deccan Gymkhana Branch, Pune-411004, Maharashtra, India

This form is for	Modification of charge
Charge identification number of the modified	10030759
Corporate identity number of the company	U99999PN1997PLC110139
Name of the company	TATA TOYO RADIATOR LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No. 235/245, Village Hinjewadi, Taluka Mulshi, District Pune-411027, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge Others
Particular of charge holder	State Bank of India, Industrial Finance Branch, Tara Chambers, 1^st Floor, Old Pune Mumbai Road, Wakdewadi, Pune-411003, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Letter of Satisfaction dated January 09, 2008 of corporate loan of Rs. 200.000 Millions forming part of the said charge
Date of instrument Creating the charge	09.01.2008
Amount secured by the charge	Rs. 420.700 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest @ 1.50% Below SBAR with a Minimum of 10.75% p.a. with monthly rests. Terms of Repayment Payable on demand or on Renewal Margin As may be decided by the bank from Time to time Extent and Operation of the charge Reduction in credit facility from Rs. 620.000 Millions to Rs. 420.000 Millions
Short particulars of the property charged	Entire Current Assets as per Records maintained at the Registered office Pune
Date of latest modification prior to the present modification	07.03.2007
Particulars of the present modification	Reduction of loan form Rs. 620.700 Millions to Rs. 420.700 Millions by repayment of corporate loan of Rs. 200.000 Millions

Trade Reference:

• Jindal Company
• Tata Motors Limited

Fixed Assets:

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Office Equipments

· Furniture and Fixtures

· Tooling

· 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 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. 48.91
UK Pound	1	Rs. 77.30
Euro	1	Rs. 64.11

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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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