MIRA INFORM REPORT

Report Date :

27.03.2012

IDENTIFICATION DETAILS

Name :	SONA OKEGAWA PRECISION FORGINGS LIMITED
Registered Office :	UGF 6, Indraprakash, 21 Barakhamba Road, New Delhi, Delhi – 110001
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.10.1995
Com. Reg. No.:	55-73456
Capital Investment /Paid up Capital	Rs. 277.184 Millions
CIN No.: [Company Identification No.]	U27300DL1995PLC073456
PAN No.: [Permanent Account No.]	AABCS4786P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Precision Forged (net shaped) Bevel Gears, Differential Case Assemblies and Synchroniser rings
No, of Employees :	Not Applicable

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 4400000
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 – April 1, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (01.04.2011)
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 :	UGF 6, Indraprakash, 21 Barakhamba Road, New Delhi, Delhi – 110001, India
Tel. No.:	91-11 – 23311924
Fax No.:	Not Available
E-Mail :	Raajesh.gupta@sonagroup.com
Factory 1 :	38/6, Delhi – Jaipur Road, Gurgaon 122002 Haryana India
Tel. No.:	91 – 124 - 468 – 5000
Fax No.:	91 – 124 - 410- 4611, 410 – 4621
E-Mail :	info@sonagroup.com
Factory 2 :	Located at Pune

DIRECTORS

(AS ON ) 29.07.2011

Name :

Mr. Surinder Kapur

Designation :

Chairman

Address :

No.11 The Green, Rajokari, New Delhi, Delhi – 110038

Date of Birth/Age :

10.10.1943

Date of Appointment :

27.10.1995

DIN Number :

00062481

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	L29113DL1984PLC018415	SONA KOYO STEERING SYSTEMS LIMITED	Director	22/10/2008	14/06/1984	-	Active	NO Top of Form Bottom of Form
2	L26102DL1984PLC019542	ASAHI INDIA GLASS LIMITED	Director	24/12/1988	24/12/1988	-	Active	NO
3	U74899DL1993PLC054930	SONA SOMIC LEMFORDER COMPONENTS LIMITED	Managing director	11/4/2007	20/08/1993	-	Active	NO
4	U30007MH1994PLC081637	MAHINDRA SONA LIMITED	Director	30/09/1994	30/09/1994	-	Active	NO
5	U27300DL1995PLC073456	SONA OKEGAWA PRECISION FORGINGS LIMITED	Director	27/10/1995	27/10/1995	-	Active	NO
6	L92114DL1976PLC008355	COSMO FILMS LIMITED	Director	21/10/2000	21/10/2000	-	Active	NO
7	U65993DL2001PTC110205	SONA INVESTMENT PRIVATE LIMITED	Director	28/03/2001	28/03/2001	-	Active	NO
8	L99999MH1922PLC000987	GREAVES COTTON LIMITED	Director	27/10/2003	27/10/2003	18/02/2009	Active	NO
9	U74140DL2005PTC138636	DRSK MANAGEMENT SERVICES PRIVATE LIMITED	Director	13/07/2005	13/07/2005	-	Amalgamated	NO
10	U63040DL2005PLC143195	SONA MOBILITY SERVICES LIMITED	Director	31/05/2007	6/10/2006	20/10/2008	Active	NO
11	U74899DL1982PTC013139	SONA AUTOCOMP HOLDING PRIVATE LIMITED	Director	10/7/2007	31/01/2007	-	Active	NO
12	U29268DL2007PLC165741	JTEKT SONA AUTOMOTIVE INDIA LIMITED	Managing director	1/1/2009	11/7/2007	-	Active	NO
13	U35122DL2007PLC166497	KOYO SONA ELECTRONICS LIMITED	Director	29/09/2008	1/8/2007	-	Active	NO
14	U35122DL2007PLC166496	SONA FUJI KIKO AUTOMOTIVE LIMITED	Director	1/8/2007	1/8/2007	-	Active	NO
15	U29130PN2007FTC131036	AAM Pantnagar Axle Private Limited	Director	24/03/2009	11/1/2008	1/9/2009	Active	NO
16	U45201DL2003PLC123512	AKME PROJECTS LIMITED	Director	30/09/2008	5/2/2008	-	Active	NO
17	U67120MH1991PTC060720	SEALAND INVESTMENTS PRIVATE LIMITED	Director	29/09/2009	24/12/2008	-	Active	NO
18	U67120MH1991PTC061336	RAGHUVANSHI INVESTMENT PRIVATE LIMITED	Director	29/09/2009	24/12/2008	-	Active	NO
19	U74999HR2010PTC040529	redi India Quality Services Private Limited	Director	1/11/2011	13/05/2010	-	Active	NO
20	U80302HR2010PTC040946	CQ WorkSkills Services Private Limited	Director	23/07/2010	23/07/2010	1/11/2011	Active	NO
21	U51900DL2011PLC226008	MANDIRA MARKETING LIMITED	Director	10/10/2011	10/10/2011	3/2/2012	Active	NO

Name :

Mr. Tapash Kumar Pal

Designation :

Whole Time Director

Address :

No. 86 Hope Apartments, Sector 15, II , Gurgaon, Haryana – 122001

Date of Birth/Age :

01.03.1942

Date of Appointment :

11.09.1997

DIN Number :

00289742

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	U65990MH1986PTC039668	TURBO INVESTMENT PRIVATE LIMITED	Director	25/09/1991	25/09/1991	12/1/2011	Active	NO
2	U65990MH1985PTC035174	HYPERSONIC INVESTMENT PRIVATE LIMITED	Director	25/09/1991	25/09/1991	12/1/2011	Active	NO
3	U27300DL1995PLC073456	SONA OKEGAWA PRECISION FORGINGS LIMITED	Whole-time director	19/06/2011	27/10/1995	-	Active	NO

Name :

Mr. Shoichi Yano

Designation :

Director

Address :

B – 38 – 2 Azuma, Kitamoto, Shi Saitama, 364-407, Japan

Date of Birth/Age :

25.08.1952

Date of Appointment :

01.04.2006

DIN Number :

00265180

Name :

Mr. Sunjay Kapur

Designation :

Director

Address :

House No.91, Grand Paradi Apts, A K .Marg, Mumbai - 400036 Maharashtra

Date of Birth/Age :

05.10.1971

Date of Appointment :

22.08.2006

DIN Number :

00145529

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	U74899DL1993PLC054930	SONA SOMIC LEMFORDER COMPONENTS LIMITED	Director	11/4/2007	3/9/1993	12/6/2007	Active	NO
2	U67120MH1991PTC060720	SEALAND INVESTMENTS PRIVATE LIMITED	Director	27/01/1995	27/01/1995	8/8/2008	Active	NO
3	U67120MH1991PTC061336	RAGHUVANSHI INVESTMENT PRIVATE LIMITED	Director	27/01/1995	27/01/1995	8/8/2008	Active	NO
4	U72200DL1996PLC083811	SONA E-DESIGN AND TECHNOLOGIES LIMITED	Director	1/3/1997	1/3/1997	-	Active	NO
5	U74899DL1982PTC013139	SONA AUTOCOMP HOLDING PRIVATE LIMITED	Director	16/03/1998	16/03/1998	-	Active	NO
6	L29113DL1984PLC018415	SONA KOYO STEERING SYSTEMS LIMITED	Managing director	22/10/2011	12/4/2004	-	Active	NO
7	U74999DL2003PTC121520	EQUISPORT MANAGEMENT PRIVATE LIMITED	Director	1/5/2005	1/5/2005	-	Active	NO
8	U63040DL2005PLC143195	SONA MOBILITY SERVICES LIMITED	Director	20/10/2008	2/12/2005	19/08/2011	Active	NO
9	U27300DL1995PLC073456	SONA OKEGAWA PRECISION FORGINGS LIMITED	Director	10/7/2007	22/08/2006	-	Active	NO
10	U74140DL1993PLC055713	SONA MANAGEMENT SERVICES LIMITED	Director	31/03/2009	15/04/2008	29/03/2010	Active	NO
11	U45400DL2007PTC167548	IndiaWorld Technologies Private Limited	Director	15/04/2010	28/06/2008	22/07/2010	Active	NO
12	U74899DL1981PTC012845	B R S FINANCE AND INVESTMENT COMPANY PRIVATE LIMITED	Director	4/8/2011	27/01/2011	-	Active	NO

Name :

Mr. Yoshiro Nonagaki

Designation :

Director

Address :

2 – 23 - 5, Idogi, Saitama Pref Saitama, Saitama – 362007 Japan

Date of Birth/Age :

02.10.1952

Date of Appointment :

26.06.2009

DIN Number :

02713406

KEY EXECUTIVE

Name :	Mr. Rajesh Kumar Gupta
Designation :	Secretary
Address :	Flat No. 234 C.A. Apartments A3, Paschim Vihar, New Delhi- 110063 Nct, Delhi
Date of Birth/Age :	04.12.1968
Date of Appointment :	24.09.2007
Din number :	ACAPG9693H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.07.2011)

Names of Shareholders	No.of Shares
Surinder Kapoor	1
Jug Mohan Kapur	1
Tapash Kumar Pal	1
Sudhir Chopra	2
Mitsubishi Materials Corporation, Japan	6367406
Kapur Rani	1
Metal One Corporation, Japan	562500
Co. Pvt. Ltd Mandira Investment & Company Privatet. Ltd Finance, Delhi	20788463
Dinesh kumar Agarwal	1
Total	27,718,376

(AS ON 29.07.2011)

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	25.00
Bodies corporate	75.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Precision Forged (net shaped) Bevel Gears, Differential Case Assemblies and Synchroniser rings

Products :

ITC Number Of Product	Description of Product or Services
73269017	Bevel Gears and Pinions
73269017	Syncroniser Rings
73269017	Other

GENERAL INFORMATION

Bankers :

· State Bank Of India, Industrial Finance Branch, 14^th Floor, Jawahar Vyapar Bhavan, 1 Tolstoy Marg, New Delhi – 110001, Delhi, India

· The ICICI Bank limited, Landmark, Race Course Circle, Vadodara – 390007, Gujrat, India

Banking Facilities

	As On 31.03.2011 Rs. Millions	As On 31.03.2010 Rs. Millions
Secured loans
Rupee term loans banks secured	(A) 1807.680	1729.597
Working capital loans banks secured	(B) 190.780	139.845
Total	1998.460	1869.442

Footnotes

(A) Loans are secured by way of firs parri-passu inter se charge on all the company's immovable property both present and future and hypothecation on all movable properties of the company including movable plant and machinery, machinery spares, tools and accessories and other movables both present and future( save and except book debts) subject to prior charges created/ to be created in favour of the company's bankers on stock & book debts for securing borrowings for working capital requirements) term loans from bank aggregating to Rs. 61.430 (previous year Millions. 58.560) are repayable within one year

(B) Secured by Hypothecation of stocks &book debts and second charge on fixed assets

Auditors :
Name :	S.P. Puri and Company Chartered Accountant
Address :	4/18 Asif Ali Road, New Delhi 110002
Pan no :	AACFS2752D

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Share	Rs.10/- each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
27,718,376	Equity Share	Rs.10/- each	Rs.277.183 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.3.2010	31.3.2009
SHAREHOLDERS FUNDS
1] Share Capital		277.184	277.184	277.184
2] Share Application Money		0.000	0.000	430.533
3] Reserves & Surplus		814.672	609.700	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1091.856	886.884	707.717
LOAN FUNDS
1] Secured Loans		1998.461	1869.442	2074.097
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1998.461	1869.442	2074.097
DEFERRED TAX LIABILITIES		45.648	41.329	51.378
TOTAL		3135.965	2797.655	2833.192
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		530.713	454.220	0.000
Capital work-in-progress		146.119	9.966	510.792
INVESTMENT		1972.456	1358.686	1358.686
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	168.007	122.354	124.359
	Sundry Debtors	437.074	321.717	348.766
	Cash & Bank Balances	85.621	65.901	258.904
	Other Current Assets	9.459	2.491	49.952
	Loans & Advances	66.713	663.867	388.159
Total Current Assets		766.874	1176.33	1170.14
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	214.128	114.400	0.000
	Other Current Liabilities	50.604	61.022	201.920
	Provisions	15.465	26.125	4.506
Total Current Liabilities		280.197	201.547	206.426
Net Current Assets		486.677	974.783	963.714
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3135.965	2797.655	2833.192

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.3.2010	31.3.2009
	SALES
		Income	2207.213	1492.171	1174.289
		Other Income	85.677	187.185	79.643
		TOTAL (A)	2292.89	1679.356	1253.932
Less	EXPENSES
		Consumption Material Changes Inventories	899.609	580.656
		Administrative Selling other Expenses	214.802	167.458
		Manufacturing Service Costs	411.978	258.908
		Employee Related Expenses	149.806	113.993
		Research Development Expenditure	7.253	0.000
		TOTAL (B)	1683.448	1121.015	962.326
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		609.442	558.341	291.606
Less	FINANCIAL EXPENSES (D)		226.437	229.539	227.105
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		383.005	328.802	64.501
Less/ Add	DEPRECIATION/ AMORTISATION (F)		63.490	65.857	79.143
	PROFIT BEFORE TAX (E-F) (G)		319.515	262.945	(14.642)
Less	TAX (H)		114.544	67.616	20.040
	PROFIT AFTER TAX (G-H) (I)		204.971	195.329	(34.682)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		107.563	(21.603)	13.079
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	50.000	0.000
		Dividend	0.000	13.859	0.000
		Tax on Dividend	0.000	2.302	0.000
	BALANCE CARRIED TO THE B/S		312.534	107.565	(21.603)
	Earnings Per Share (Rs.)		7.39	7.05	(1.25)

KEY RATIOS

PARTICULARS		31.03.2011	31.3.2010	31.3.2009
PAT / Total Income	(%)	8.94	11.63	(2.76)
Net Profit Margin (PBT/Sales)	(%)	14.48	17.62	(1.25)
Return on Total Assets (PBT/Total Assets}	(%)	24.62	16.13	(1.25)
Return on Investment (ROI) (PBT/Networth)		0.29	0.30	(0.02)
Debt Equity Ratio (Total Liability/Networth)		2.08	0.23	0.29
Current Ratio (Current Asset/Current Liability)		2.73	5.84	5.67

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE : Year 2010-2011

For the year ended 31st March, 2011, the Company registered sales and other income of 2292.89 million as against the sales of 1679.36 million during the previous year. The year has been a phenomenal year and the Company has shown good growth both in terms of sales and profitability. The sales during the year have been higher by 36.54% as compared to the previous financial year. During the year, the Company has earned net profit of Rs. 204.98 million as against profit of Rs. 195.33 million during the previous year.

THE CURRENT YEAR

Market

a) Domestic – In the last financial year 2010-11, the Company has developed almost forty (40) new components for the existing as well as new customers. For the year ended, the domestic sales were Rs. 1908.00 million compared to last year Rs. 1365.04 million, registering a growth of 39.78%. This has been due to revival in demand of Commercial vehicles resulting into higher demand of automotive components manufactured by the Company.

b) Export – Export sales were Rs. 299.00 million compared to last year of Rs. 127.13 million, registering a substantial growth of 135%. In the current financial year (FY-2011-12), the Company is focusing on the export market along with the support of the Joint Venture Partner.

SONA BLW GROUP STATUS

The Company had acquired four precision forging plants in Germany and USA during the financial year 2007-08. Immediately after the said acquisition the world faced unprecedented economic meltdown and the automobile sector was among one of the worst hit sectors. This has impacted the demand in Europe and the performance of Sona BLW Prazisionsschmiede GmbH and Sona Auto Comp Precision Forge Inc., USA also got impacted adversely. To overcome the situation, Sona BLW took various cost cutting measures and at the same time focused on identifying new markets and new products to increase sales. This two way strategy has started giving results and the sales of Sona BLW has increased substantially. The Board of Directors of the Company are pleased to inform the shareholders that Sona BLW has started earning operating profits and it is expected that during the financial year 2012-13, Sona BLW will start generating net profits and the investments made by the Company shall start fetching returns.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27300DL1995PLC073456
Name of the company	SONA OKEGAWA PRECISION FORGINGS LIMITED
Address of the registered office or of the principal place of business in India of the company	UGF 6, Indraprakash, 21 Barakhamba Road, New Delhi, Delhi – 110001, India
This form is for	Modification of change
Charge identification (ID) number of the charge to be modified	90042424
Type of charge	Immovable property
Particular of charge holder	State Bank of India Industrial Finance Branch, 14^th Floor, Jawahar Vyapar Bhavan, 1 Tolstoy Marg, New Delhi – 110001, Delhi, India
Nature of instrument creating charge	1. Memorandum Of Entry Dated 22.06.2011 Executed Between Sona Okegawa Precision Forgings Limited And Icici Bank Limited (As Agent For State Bank Of India). 2. Declaration dated 22.06.2011 executed by Sona Okegawa Precision forgings limited ("the borrower").
Date of instrument Creating the charge	22.06.2011
Amount secured by the charge	Rs. 150.000
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 5.90% above base rate i,e 13.50% p.a at monthly rests Terms of repayment as per the terms of agreement. Margin Raw Materials - 25%, stock in progress - 30%, stores and spares - 30%, finished goods - 25%, receivables (cover period - 90 days) - 30% and 100% cash margin against bank guarantees covering disputed liabilities Extent and operation of the charge Second pari-passu charge over immovable properties of the company as detailed in the third schedule of the memorandum of entry together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All that pieces and parcels of land situated at Sona enclave, village Begampur Khatola, Gurgaon - 122 001 admeasuring 48 Kanals and 11 Marlas. All that pieces and parcels of land situated at plot no. t-46, Pimpri industrial area, Pune Admeasuring 4541 square meters.
Date of instrument modifying the charge	07/01/2011
Particulars of the present modification	The company has created second pari-passu charge over immovable properties of the company as detailed in the third schedule of the memorandum of entry to secure the revised working capital facility limits of Rs. 150.000/- (Millions) sanctioned by State Bank of India.

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. 50.9175
UK Pound	1	Rs. 81.2434
Euro	1	Rs. 67.8500

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.