MIRA INFORM REPORT

Report Date :

15.02.2012

IDENTIFICATION DETAILS

Name :	DAIKIN AIRCONDITIONING INDIA PRIVATE LIMITED
Formerly Known As :	DAIKIN-SHRIRAM AIRCONDITIONING PRIVATE LIMITED
Registered Office :	F -25/2 Okhla Industrial Area, Phase – II, New Delhi – 110020
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.04.2000
Com. Reg. No.:	55-104990
Capital Investment / Paid-up Capital :	Rs.2229.239 millions
CIN No.: [Company Identification No.]	U74899DL2000PTC104990
TAN No.: [Tax Deduction & Collection Account No.]	DELD04648A
PAN No.: [Permanent Account No.]	AABCD0971F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing, Sales and Related Services of Air Conditioners and Chillers.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 9600000
Status :	Moderate
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Daikin Industries Limited, Japan. It is a well established and well known company in air conditioning industry. Financial position of the company is moderate. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct. In view of strong holding, 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

LOCATIONS

Registered Office :	F -25/2 Okhla Industrial Area, Phase – II, New Delhi – 110020, India
Tel No.:	Not Available
Fax No:	Not Available
E-Mail :	ho@daikinindia.com manoj.sharma@dwikinindia.com
Website :	http://www.daikinindia.com
Factory :	SP 2-12 to SP2-15 and SP 2-24 to SP2-27 RIICO New Industrial Complex, Neemrana – 301705, District Alwar, Rajasthan, India
Tel No.:	91-1494-229100
Branches :	Delhi NCR 12th Floor, Building No. 9, Tower A, DLF Cyber City, DLF Phase – III, Gurgaon - 122002, Haryana, India Tel: 91-124-4555444 Fax:91-124-4555333 Contact : Mr. Sanjeev Gianchandani Jaipur 778, Kiran Path, Suraj Nagar(West), Civil Lines, Jaipur – 302006, Rajasthan, India Tel: 91-141-2223430, 2223439 ,91-141-2223430, Fax:91-141-2225569 Contact: Mr. Kamal Ahmedabad Flat No. 303, Florence, Opposite Ashram Road Post Office, Ashram Road, Ahmedabad-380009, Gujarat, India Tel: 91-79-26583013/26583014 Fax:91-79-26583365 Contact: Mr. Akeel Khan Lucknow B/191, 1st Floor, Nirala Nagar, Lucknow – 226020, India Tel: 91-522-2787307, 2787340        91-522-2787291 Fax:91-522-2787342 Contact: Mr. Amit Puri Chandigarh SCO -14 &15, Sector - 9D, Chandigarh, India Tel: 91-172-5089862, 63, 64 Fax:91-172-5089861 Contact: Mr. Dinesh Daniya Mumbai Sunteck Center, 2nd Floor, Subhash Road, Garware Off. Western Express Highway, Ville Parle East, Mumbai, Maharashtra, India Tel: 91-22-30926666 Fax:91-22-30926699 Contact: Mr. Neeraj Chennai New No. - 484, Old No. - 580, Teynampet, Anna Salai, Chennai – 600006, Tamilnadu, India Tel: 91-44-24314210, 15 Fax:91-44-24338622 Contact: Mr. K. Ganesh Rao Bangalore Unit - 208 " Ramanashree Arcade", Above Kids Camp 18/4- 41, M.G. Road, Bangalore – 560001, Karnataka, India Tel: 91-80-25590452, 54 Fax:91-80-25590450 Contact: Mr. Sujoy Pune 5B-1,2 and 3 on 5th Floor, Symphony 'A' Building Range Hill Road, Shivaji Nagar, Pune – 411016, Maharashtra, India Tel: 91-20-25560601/25560300-02-03/32938516 Fax:91-20-25561304 Contact : Mr. Sanjay Rao Kolkata Unit No. 205-208, 2nd Floor Chandan Niketan, 52A, Shakespeare Sarani, Kolkata -700 017, West Bengal, India Tel: 91-33-22894260 Fax:91-33-22894259 Contact: Mr. U D Trivedi Hyderabad 608, 6th floor, Saptgiri Towers ,Begum Pet, Hyderabad 500016, India Tel: 91-40-39134287 Fax:91-40-66326642 Contact: Mr. K. Ganesh Rao

DIRECTORS

(AS ON 11.07.2011)

Name :

Mr. Kanwal Jeet Jawa

Designation :

Managing Director

Address :

C-204, Greater Kailash Part 1, New Delhi – 110048, India

Date of Birth/Age :

10.11.1959

Date of Appointment :

10.09.2010

DIN No.:

00057351

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	U29193DN2001PLC000159	UNIVERSAL COMFORT PRODUCTS LIMITED	Director	18/06/2003	18/06/2003	27/11/2006	Active	NO
2	U51395DL2004PTC125366	UNIFLAIR INDIA PRIVATE LIMITED	Managing director	1/12/2006	1/12/2006	20/04/2010	Active	NO
3	U74899DL2000PTC104990	DAIKIN AIRCONDITIONING INDIA PRIVATE LIMITED	Managing director	30/09/2010	10/9/2010	-	Active	NO

Name :

Mr. Rohit Berry

Designation :

Director

Address :

B – 605/606, Som Vihar Apartments, Sector – 12, R.K. Puram, New Delhi – 110019, India.

Date of Birth/Age :

25.08.1970

Date of Appointment :

22.05.2009

DIN No.:

00453642

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	U74140KA2004PTC034016	SANYO BPL PRIVATE LIMITED	Director	1/9/2006	15/12/2005	1/5/2008	Under liquidation	NO
2	U74899DL2000PTC104990	DAIKIN AIRCONDITIONING INDIA PRIVATE LIMITED	Director	22/05/2009	15/05/2009	-	Active	NO
3	U24110MH2000PTC124224	SUMITOMO CHEMICAL INDIA PRIVATE LIMITED	Director	30/11/2009	5/10/2009	-	Active	NO
4	U74140DL2006PTC154434	BMR MANAGED SERVICES PRIVATE LIMITED	Additional director	14/03/2011	14/03/2011	-	Active	NO
5	U74100MH2004PTC150047	BMR ADVISORS PRIVATE LIMITED	Additional director	14/03/2011	14/03/2011	-	Active	NO

Name :

Mr. Shinya Nishi

Designation :

Director

Address :

7-37-204, Tuchiyama – Cho, Nada ku, Kobe City, Hyougo, Japan

Date of Birth/Age :

11.11.1964

Date of Appointment :

22.05.2009

DIN No.:

02670675

Name :

Mr. Tetsuya Kamji

Designation :

Additional Director

Address :

D-401, Central Park – 1, Sector 42, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

01.09.1962

Date of Appointment :

12.12.2009

DIN No.:

02896894

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	U74899DL2000PTC104990	DAIKIN AIRCONDITIONING INDIA PRIVATE LIMITED	Director	15/09/2010	12/12/2009	Active	NO

Name :

Mr. Toshio Akio Nakano

Designation :

Director

Address :

15-27, Shoei-cho, Kawachinago-shi, Osaka, Japan-5860025

Date of Birth/Age :

19.12.1944

Date of Appointment :

07.02.2011

DIN No.:

03310877

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	U74899DL2000PTC104990	DAIKIN AIRCONDITIONING INDIA PRIVATE LIMITED	Director	7/2/2011	26/10/2010	Active	NO

Name :

Mr. Hitoshi Hideki Tanaka

Designation :

Director

Address :

B-184, The ICON, DLF City, Phase V, Gurgaon –122002, Haryana, India

Date of Birth/Age :

21.02.1967

Date of Appointment :

07.02.2011

DIN No.:

03310959

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	U74899DL2000PTC104990	DAIKIN AIRCONDITIONING INDIA PRIVATE LIMITED	Director	7/2/2011	26/10/2010	Active	NO

Name :

Mr. Masakatsu Syozou Morimoto

Designation :

Director

Address :

3-807, 4- Chome, Hara Chou, Suita City, Osaka, Japan – 5650871

Date of Birth/Age :

05.11.1962

Date of Appointment :

07.02.2011

DIN No.:

03310980

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	U74899DL2000PTC104990	DAIKIN AIRCONDITIONING INDIA PRIVATE LIMITED	Director	7/2/2011	26/10/2010	Active	NO

Name :

Mr. Motohiro Takashi Nakai

Designation :

Director

Address :

G-501, Central Park – I, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

10.11.1959

Date of Appointment :

07.02.2011

DIN No.:

03310997

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	U74899DL2000PTC104990	DAIKIN AIRCONDITIONING INDIA PRIVATE LIMITED	Director	7/2/2011	26/10/2010	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 11.07.2011)

Names of Shareholders	No. of Shares
Daikin Industries Limited, Japan	22292389
Daikin Airconditioning (Singapore) Pte. Limited – Singapore	1
Total	22292390

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing, Sales and Related Services of Air Conditioners and Chillers.

Products :

ITC Code No.	Product Description
8415.00	Air Conditioners

PRODUCTION STATUS (AS ON 31.03.2010)s

Particulars	Unit	Installed Capacity	Actual Production
Air Conditioners	Nos	20000	800

Notes:

i) The company’s products are exempt from licensing requirements.

ii) Installed capacity is certified by the management of the company

iii) As the company has set up its plant in the current year, installed capacity for pervious yea has not been given.

GENERAL INFORMATION

No. of Employees :

200 (Approximately)

Bankers :

· State Bank of India,

Overseas Branch, Vijaya Building, Bara Khamba Road, New Delhi, India

· Sumitomo Mitsui Banking Corporation

Gopal Das Bhawan, Barakhamba Road, New Delhi – 110001, Delhi, India

· Bank of Tokyo-Mitsubishi Limited

Jeevan Vihar Building 3, Parliament Street, New Delhi – 110001, India

Facilities :

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Foreign Currency Loans Banks	503.025	0.000
Working Capital Loans Banks	14.000	0.000
Total	517.025	0.000

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	7^th Floor, Building No.10, Tower – B, DLF Cyber City Complex, DLF City Phase –III, Gurgoan – 122002, Haryana, India.
PAN No.:	AABFD2095B
Holding Company:	· Daikin Industries Limited, Japan
Fellow Subsidiaries :	· Daikin Trading Limited, Japan · Daikin Industries (Thailand) Limited · Daikin Trading (Thailand ) Limited · Daikin Asia Services Pte limited, Singapore · Mcquay Airconditioning (Singapore) Pte Limited · OYL Manufacturing Company Sdn Bhd, Malaysia · Daikin Europe NV, Brussels · Daikin Information Systems Company Limited, Japan · Dikin Aircoditioning (Thailand) Limited · Mcquay Airconditioning Refrigerator (WUHAN) Company Limited, China · Shenzhen Mcquay Airconditioning Company Limited, China · Mcquay International, USA · Daiking Airconditioning (Singapore) Pte Liomited (Share Held from 12 March 2008) · Mcquay Airconditioning and Refrigeration (Suzhou) Company Limited · Daikin Airconditioning (Shanghai) Company Limited · Daikin Compressor Industries Limited · Mcquay Italy Spa · Daikin Arkema Refrigerents Asia Limited · Zhuhai Gree Daikin Precision

CAPITAL STRUCTURE

(AS ON 11.07.2011)

Authorised Capital : Rs.5000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.2229.239 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
24000000	Equity Shares	Rs.100/- each	Rs.2400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22292390	Equity Shares	Rs.100/- each	Rs.2229.239 millions

NOTE:

Of the above, 22292389 shares (Previous year : 22292389 shares) are held by Daikin Industries Limited, Japan – 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		2229.239	2229.239	2229.239
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		180.746	454.535	681.933
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2409.985	2683.774	2911.172
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		517.025	0.000	0.000
TOTAL BORROWING		517.025	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2927.010	2683.774	2911.172
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1667.053	1374.207	262.245
Capital work-in-progress		41.068	223.288	898.411
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	24.374
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4241.494	1080.568	709.346
	Sundry Debtors	284.138	80.445	85.944
	Cash & Bank Balances	184.458	455.309	1336.315
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	658.953	440.268	246.606
Total Current Assets		5369.043	2056.590	2378.211
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	3696.424	754.967	494.337
	Other Current Liabilities	409.583	181.052	126.816
	Provisions	44.147	34.292	30.916
Total Current Liabilities		4150.154	970.311	652.069
Net Current Assets		1218.889	1086.279	1726.142
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2927.010	2683.774	2911.172

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	6884.000	2984.000	2587.030
		Other Income	NA	NA	104.627
		TOTAL (A)	NA	NA	2691.657
Less	EXPENSES
		TOTAL (B)	NA	NA	2573.425
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	NA	118.232
Less	FINANCIAL EXPENSES (D)		NA	NA	1.974
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(41.400)	(84.300)	116.258
Less/ Add	DEPRECIATION/ AMORTISATION (F)		200.400	116.100	38.334
	PROFIT BEFORE TAX (E-F) (G)		(241.800)	(200.400)	77.924
Less	TAX (H)		32.000	28.400	37.645
	PROFIT AFTER TAX (G-H) (I)		(273.800)	(228.800)	40.279
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	641.654
	BALANCE CARRIED TO THE B/S		NA	NA	681.933
	EARNINGS IN FOREIGN CURRENCY
		Commission Earnings	NA	174.402	173.990
		Other Earnings	NA	8.566	11.116
	TOTAL EARNINGS		NA	182.968	185.106
	IMPORTS
		Raw Materials	NA	186.323	3.643
		Stores & Spares	NA	83.477	84.703
		Capital Goods	NA	347.709	2.042
		Finished Goods	NA	1467.191	1559.505
	TOTAL IMPORTS		NA	2084.700	1649.893
	Earnings Per Share (Rs.)		(12.28)	(10.26)	3.01

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	NA	1.49
Net Profit Margin (PBT/Sales)	(%)	(3.51)	(6.72)	3.01
Return on Total Assets (PBT/Total Assets}	(%)	(3.44)	(5.84)	2.95
Return on Investment (ROI) (PBT/Networth)		(0.10)	(0.07)	0.02
Debt Equity Ratio (Total Liability/Networth)		1.94	0.36	0.22
Current Ratio (Current Asset/Current Liability)		1.29	2.12	3.64

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The Company has taken a bold step towards becoming a marketing company from an engineering company. And Daikin has entered into volume business with the wide range of products. The company has introduced an affordable range of air conditioners in the market which fit the purchase range of the growing Indian middle class consumers.

The Company has successfully penetrated the Indian made VRV and Chiller sales during FY 10 with a growth of 528% in VRV ODU.

The Company has been able to post 231% growth in its turnover including manufacturing sales.

FINANCIAL OVERVIEW

The Turnover for the year ended March 31, 2011 stood at Rs.6,884 million as compared to Rs. 2,984 million for the year ended March 31, 2010, the Company grew by 231% over previous year.

The company has started using the working capital short term loans to manage the liquidity of its huge business volumes i.e. the Company is adopting to the Short term working capital loans and buyers credit for making foreign currency payments of imported finished goods and parts for manufacturing plant.

As per the requirements of Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets, a provision of Rs.22.01mn has been provided for expected warranty claims on products/ projects, sold/ commissioned during the financial year.

BACKGROUND:

Subject was incorporated on 04.04.2000 to manufacture, export, assemble, supply, distribute and import all types of air conditioning and refrigeration equipment and accessories. The company is a subsidiary of Daikin Industries Limited. 22292389 shares are held by DIL, Japan nad the balance of share being held by Daikin Airconditioning (Singapore) Pte. Limited.

The company was only in the trading business and has also started manufacturing at Neemrana Plant from 30.09.2009.

NOTE:

The Registered Office of the company has been shifted from 12^th Floor, Suryakiran Building, 19 Kasturba Gandhi Marg, New Delhi – 110001, Delhi, India to the present address w.e.f 22.12.2006.

FORM 8

Name of the company	DAIKIN AIRCONDITIONING INDIA PRIVATE LIMITED
Presented By	State Bank of India Overseas Branch, New Delhi
1) Date and description of instrument creating the change	Hypothecation agreement dated 24.09.2002 and registered on 23.11.2002
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 50.000 millions
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 Current Assets including inventories and bills receivables.
4) Gist of the terms and conditions and extent and operation of the charge.	Margin @ 25% on current assets
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Overseas Branch, Vijaya Building, Bara Khamba Road, New Delhi.
6) Date and brief description of instrument modifying the charge	20.02.2003, No Instrument Further charge by way of consent letter dated 18.02.2003
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The above limit of Rs. 50.000 millions will now also be secured by way on 1^st chare over the company’s fixed assets namely goodwill, Patents and Trademarks, Leaseholds Improvements, Plant and Machinery, Furniture and Fixtures, Office equipments and Vehicles both present and future wherever stored kept and lying.

FIXED ASSETS:

· Leasehold Buildings

· Leasehold Improvements

· Plant and Machinery

· Office equipment

· Computers

· Furniture and Fixtures

· Vehicles

· Leasehold Land

· Software’s

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] 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.49.33
UK Pound	1	Rs.77.41
Euro	1	Rs.64.84

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		35

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.