MIRA INFORM REPORT

Report Date :

20.07.2012

IDENTIFICATION DETAILS

Name :	OMR BAGLA AUTOMOTIVE SYSTEMS INDIA LIMITED (w.e.f. 19.12.2007)
Formerly Known As :	ASSOCIATED BRAKES LIMITED
Registered Office :	Plot No.B-7, MIDC Chakan, Village Mahalunge, Taluka – Khed, Pune – 410 501, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.08.2006
Com. Reg. No.:	11-128851
Capital Investment / Paid-up Capital :	Rs.55.350 millions
CIN No.: [Company Identification No.]	U31904PN2006PLC128851
TAN No.: [Tax Deduction & Collection Account No.]	PNEA08575A
PAN No.: [Permanent Account No.]	AAFCA8402N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in manufacturing of aluminium die casting, high pressure casting for engine transmission parts of truck, car, two wheelers and three wheelers.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 1890000
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 caution.

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 R isk Classification List – September 30, 2011

Country Name	Previous Rating (30.09.2011)	Current Rating (31.12.2011)
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 :	Plot No.B-7, MIDC Chakan, Village Mahalunge, Taluka – Khed, Pune – 410 501, Maharashtra, India
Tel. No.:	91-2431-329457
Mobile No.:	91-2431-329458
E-Mail :	kulkarni.aa@baglagroup.com
Website :	http://www.baglagroup.com
Factory :	Gut No.217, Village Chitegaon, Mpaithan Road, Near Chitegaon Toll Naka, Aurangabad – 431 105, Maharashtra, India
Tel. No.:	91-2431-251789/ 329457/ 329458
Fax No.:	91-2431-251789
E-Mail :	tannu.ak@baglagroup.com agarwal.pc@baglagroup.com
Area :	10 Acre
Location :	Owned

DIRECTORS

As on 13.09.2011

Name :

Mr. Rishi Kumar Rajnarayan Bagla

Designation :

Managing Director

Address :

Gut No.40, Golwadi, Paithan Road, Aurangabad – 431 005, Maharashtra, India

Date of Birth/Age :

02.08.1959

Qualification :

B.Com

Date of Appointment :

04.08.2006

DIN No.:

00002020

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31909PN1985PLC037539	Aurangabad Electricals Limited	Managing director	25/02/2011	23/09/1985	-	Active	NO
2	U34300MH1991PLC061007	Aurangabad Motor Manufacturers Limited	Director	05/07/1992	05/07/1992	-	Active	NO
3	U67110PN1993PTC074896	Waluj Investments and Trading Company Private Limited	Director	03/11/1993	03/11/1993	-	Active	NO
4	U21098PN1991PLC060509	Deccan Carbon Products Limited	Director	01/04/1994	01/04/1994	-	Active	NO
5	U31200MH1999PLC130298	BG LI-IN Electricals Limited	Director	28/10/1999	28/10/1999	-	Active	NO
6	U32100MH2004PTC144083	Gran Electronics Private Limited	Director	20/01/2004	20/01/2004	10/02/2009	Active	NO
7	U51395MH2004PTC146495	Manshi Electronics Private Limited	Director	24/05/2004	24/05/2004	-	Active	NO
8	U31909MH2005PTC151679	BG-DAE-LIN Electronics Private Limited	Director	01/03/2005	01/03/2005	-	Amalgamated	NO
9	U34300HR2006PTC036013	Haryana Auto Comp Private Limited	Director	23/01/2006	23/01/2006	-	Active	NO
10	U31904PN2006PLC128851	OMR Bagla Automotive Systems India Limited	Managing director	17/11/2007	04/08/2006	-	Active	NO
11	U34300PN2007PLC131072	BMR Hvac Limited	Director	04/12/2007	04/12/2007	-	Active	NO
12	U01403MH2008PTC181606	Aurangabad Biotech Private Limited	Additional director	15/12/2011	15/12/2011	-	Active	NO

Name :

Mrs. Mamta Bagla

Designation :

Director

Address :

Gut No.40, Golwadi, Paithan Road, Opposite St. John High School, Aurangabad – 431 005, Maharashtra, India

Date of Birth/Age :

12.07.1963

Qualification :

Matriculation

Date of Appointment :

20.09.2010

DIN No.:

00002031

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U67110PN1993PTC074896	Waluj Investments and Trading Company Private Limited	Director	03/11/1993	03/11/1993	Active	NO
2	U31909PN1985PLC037539	Aurangabad Electricals Limited	Director	01/09/2011	01/04/1994	Active	NO
3	U31200MH1999PLC130298	Bg Li-In Electricals Limited	Director	01/12/2010	24/09/2007	Active	NO
4	U21098PN1991PLC060509	Deccan Carbon Products Limited	Director	30/09/2008	20/10/2007	Active	NO
5	U34300HR2006PTC036013	Haryana Auto Comp Private Limited	Director	18/03/2012	17/01/2009	Active	NO
6	U34300PN2007PLC131072	BMR Hvac Limited	Director	18/03/2012	17/01/2009	Active	NO
7	U31909MH2005PTC151679	BG-DAE-LIN Electronics Private Limited	Director appointed in casual vacancy	01/04/2009	01/04/2009	Amalgamated	NO
8	U31904PN2006PLC128851	OMR Bagla Automotive Systems India Limited	Director	20/09/2010	26/07/2009	Active	NO

Name :

Mr. Muneesh Chawla

Designation :

Director

Address :

A – 702, Ambience Island, NH – 8, Gurgaon – 122 002, Haryana, India

Date of Birth/Age :

05.01.1967

Qualification :

B. Tech. M.B.A

Date of Appointment :

04.08.2006

DIN No.:

00069360

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U67190MH2005PTC153470	Blue River Capital Advisors (India) Private Limited	Whole-time director	17/06/2005	17/06/2005	-	Converted to LLP and dissolved	NO
2	U31909PN1985PLC037539	Aurangabad Electricals Limited	Nominee director	19/04/2006	19/04/2006	-	Active	NO
3	U31904PN2006PLC128851	OMR Bagla Automotive Systems India Limited	Director	04/08/2006	04/08/2006	-	Active	NO
4	U63010MH1993PLC070572	Wilson Sandhu Logistics (India) Limited	Director	10/10/2007	10/10/2007	-	Active	YES
5	U74140MH2008PTC180328	Blue River Capital India Advisory Services Private Limited	Director	19/03/2008	19/03/2008	-	Active	NO
6	L35999TN1936PLC002202	Rane Holdings Limited	Alternate director	30/05/2012	30/07/2008	30/05/2012	Active	NO
7	U22219DL1981PLC012808	International Print-O-Pac Limited	Director	25/09/2010	21/01/2010	-	Active	NO

Name :

Mr. Marco Bonometti

Designation :

Managing Director

Address :

Via Nino Bixio No.8, Rezzato, Brescia, Italy 25086

Date of Birth/Age :

06.09.1954

Qualification :

Degree on Engineering University

Date of Appointment :

17.11.2007

DIN No.:

01914783

Name :

Mr. Francesco Bonometti

Designation :

Director

Address :

Via Gaetano, Donizetti No.6, Rezzato, Brescia, Italy 25086

Date of Birth/Age :

26.02.1956

Qualification :

Secondary School specializing in Scientific Subjects

Date of Appointment :

17.11.2007

DIN No.:

01914784

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U31904PN2006PLC128851	OMR Bagla Automotive Systems India Limited	Director	30/09/2008	17/11/2007	Active	NO

Name :

Mr. Stefano Allocchio

Designation :

Director

Address :

Via Giovanni, Bertacchi No.1, Rezzato, Brescia, Italy 25123

Date of Birth/Age :

24.03.1961

Qualification :

Degree on Economics University

Date of Appointment :

17.11.2007

DIN No.:

01914787

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U31904PN2006PLC128851	OMR Bagla Automotive Systems India Limited	Director	30/09/2008	17/11/2007	Active	NO

KEY EXECUTIVES

Name :	Mr. Aniket Ashokrao Kulkarni
Designation :	Secretary
Address :	Shalaka, Plot No.30, Behind Tandoor Hotel, Bansilal Nagar, Aurangabad – 431 001, Maharashtra, India
Date of Birth/Age :	08.06.1982
Date of Appointment :	10.08.2009
PAN No.:	AQTPK6869J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 13.09.2011

Names of Shareholders	No. of Shares
Aurangabad Electricals Limited, India	2767440
OMR Holding SPA, Italy	2767500
Aurangabad Electricals Limited Jointly with Raj Narayan Bagla	10
Aurangabad Electricals Limited Jointly with Rishi Kumar Bagla	10
Aurangabad Electricals Limited Jointly with Mamta Bagla	10
Aurangabad Electricals Limited Jointly with Neha Bagla	10
Aurangabad Electricals Limited Jointly with Devanshi Bagla	10
Aurangabad Electricals Limited Jointly with Anil Mali	10
Total	5535000

As on 13.09.2011

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

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing of aluminium die casting, high pressure casting for engine transmission parts of truck, car, two wheelers and three wheelers.

Products :

Products Description	ITC Code No.
Parts of Two Wheelers	87141900
Parts of Three Wheelers	87089900
Parts of Engines	84099191

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	2010-11 Qty
Licensed Capacity		*
Installed Capacity	MT	12 MT / Day (**)

* As per the Industrial Policy Notification No. S.O./477(E) dated July 25, 1991 issued by the Government of India, Ministry of Industry, Department of Industrial Development, the manufacture of products of the Company are exempt from industrial licensing.

** As certified by the management and have not been verified by the auditors, being a technical matter.

Particulars	Unit	Actual Production
Aluminum Die Casting Products	Nos.	1807621

GENERAL INFORMATION

Customers :

v General Motors

v Chrysler

v Hero Motors

No. of Employees :

200 (Approximately)

Bankers :

The Saraswat Co-Operative Bank Limited, Gajanan Maharaj Mandir Branch, Garkheda Parisar, Aurangabad – 431 001, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
A. Term loan from Bank (Secured by mortgage of land and building and hypothecation of plant and machinery and other movable assets) [Repayable within one year Rs.83.340 millions (Previous year Rs.83.340 millions)]	152.769	236.109
B. Working Capital facilities from Banks i) Bill Discounting	71.453	30.212
ii) Cash Credit (Secured by hypothecation of stocks and debtors less sundry creditors and advances received from customers) (repayable on demand)	7.701	7.485
Total	231.923	273.806

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	Muttha Towers, Suite No.8, 5^th Floor, Air Port Road, Yerwada, Pune – 411 006, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AADFP9359C
Venturers in respect of which the reporting enterprise is a joint venture :	v OMR Holding SpA v Aurangabad Electricals Limited
Subsidiary of Venturers :	Officine Meccaniche Rezzatesi Srl
Enterprise over which any person described below is able to exercise significant influence :	Aurangabad Motor Manufacturers Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/-each	Rs.70.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5535000	Equity Shares	Rs.10/-each	Rs.55.350 millions

(Of the above, 2767500 shares each are held by Aurangabad Electricals Limited, including its nominees and OMR Holding SpA, Italy)

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		55.350	55.350	55.350
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		440.300	440.300	440.300
4] (Accumulated Losses)		(23.723)	(36.593)	(30.729)
NETWORTH		471.927	459.057	464.921
LOAN FUNDS
1] Secured Loans		231.923	273.806	168.584
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		231.923	273.806	168.584
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		703.850	732.863	633.505
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		603.228	666.979	643.011
Capital work-in-progress including Capital Advances		0.223	0.451	122.324
INVESTMENT		0.025	0.025	0.025
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	132.131	108.072	87.741
	Sundry Debtors	134.306	88.510	137.762
	Cash & Bank Balances	8.320	6.089	16.822
	Other Current Assets	0.306	0.422	1.488
	Loans & Advances	31.565	48.773	51.898
Total Current Assets		306.628	251.866	295.711
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	170.280	164.232	388.547
	Other Current Liabilities	34.763	18.320	36.204
	Provisions	1.211	3.906	2.815
Total Current Liabilities		206.254	186.458	427.566
Net Current Assets		100.374	65.408	(131.855)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		703.850	732.863	633.505

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	603.340	527.667	523.713
		Other Income	21.598	19.158	24.167
		TOTAL (A)	624.938	546.825	547.880
Less	EXPENSES
		Cost of Goods Sold	352.346	311.260	338.735
		Personnel Expenses	57.234	52.089	60.218
		Operating and Other Expenses	89.571	66.461	81.875
		TOTAL (B)	499.151	429.810	480.828
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		125.787	117.015	67.052
Less	FINANCIAL EXPENSES (D)		27.094	32.674	17.984
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		98.693	84.341	49.068
Less/ Add	DEPRECIATION/ AMORTISATION (F)		85.823	90.205	55.131
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		12.870	(5.864)	(6.063)
Less	TAX (H)		0.000	0.000	0.475
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		12.870	(5.864)	(6.538)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(36.593)	(30.729)	(24.191)
	BALANCE CARRIED TO THE B/S		(23.723)	(36.593)	(30.729)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	171.735	171.209	85.902
	TOTAL EARNINGS		171.735	171.209	85.902
	IMPORTS
		Capital Goods	17.618	0.000	262.105
		Raw Material	30.182	77.762	27.198
		Tools, Dies, Consumables & Spares	20.234	16.274	59.855
	TOTAL IMPORTS		68.034	94.036	349.158
	Earnings/ (Loss) Per Share (Rs.)		2.33	(1.06)	(1.18)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.06	(1.07)	(1.19)
Net Profit Margin (PBT/Sales)	(%)	2.13	(1.11)	(1.16)
Return on Total Assets (PBT/Total Assets}	(%)	1.41	(0.64)	(0.64)
Return on Investment (ROI) (PBT/Networth)		0.03	(0.01)	(0.01)
Debt Equity Ratio (Total Liability/Networth)		0.93	1.00	1.28
Current Ratio (Current Asset/Current Liability)		1.49	1.35	0.69

LOCAL AGENCY FURTHER INFORMATION

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	No
10) Designation of contact person	No
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	No
20) Export / Import details (if applicable)	No
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

FINANCIAL HIGHLIGHTS:

During the financial year ended March 31, 2011, Total Net Income amounted to Rs.624.937 millions as against Rs.546.825 millions during the previous year, registering growth of 14%. Improvement in operational efficiencies enabled the Company to record higher EBIDTA of Rs.124.137 millions as against Rs.114.288 millions, an increase of 9% over the previous year. During the financial year company has widened its client base by adding some reputed clients like General Motors, Chrysler, Hero Motors in its client list. Looking to the increasing demand and new products for new clients the company is also undertaking expansions in capacities and operational margins would further improve in financial year 2011-12.

BUSINESS EXCELLENCE AND IMPROVEMENT INITIATIVES:

The Company has continued Total Productivity Maintenance, TPM System to further growth and bring about operational excellence through TPM way. It is also pursuing improvements through Environmental Management System (EMS) such OHSAS etc. The Company has committed efforts and resources towards improving efficiencies and service levels in its operations.

Bankers Charges Report as per Registry

Corporate identity number of the company	U31904PN2006PLC128851
Name of the company	OMR BAGLA AUTOMOTIVE SYSTEMS INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.B-7, MIDC Chakan, Village Mahalunge, Taluka – Khed, Pune – 410 501, Maharashtra, India E-Mail: kulkarni.aa@baglagroup.com
This form is for	Creation of charge
Type of charge	Movable Property (not being pledge)
Particular of charge holder	The Saraswat Co-Operative Bank Limited, Gajanan Maharaj Mandir Branch, Garkheda Parisar, Aurangabad – 431 001, Maharashtra, India E-Mail: incharge_gajananmaharaj@saraswatbank.com
Nature of description of the instrument creating or modifying the charge	Agreement for Hypothecation of Movable Property for L/c on D/A basis.
Date of instrument Creating the charge	17.11.2011
Amount secured by the charge	Rs.90.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Rate of interest and commission on LC will be as may be applicable from time to time. Terms of Repayment: Repayment on demand. Margin: 10% Extent and Operation of the charge: Hypothecation of goods purchased / imported by the company under letter of credit.
Short particulars of the property charged	Hypothecation of goods purchased / imported by the company under letter of credit.

FIXED ASSETS:

Tangible Assets

v Freehold Land

v Buildings

v Plant and Machinery

v Furniture and Fixtures

v Vehicles

v Computer Equipments

v Office Equipments

Intangible Assets

v 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.55.38
UK Pound	1	Rs.86.75
Euro	1	Rs.68.06

INFORMATION DETAILS

Report Prepared by :

SMN

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	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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		29

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.