MIRA INFORM REPORT

Report Date :

16.05.2012

IDENTIFICATION DETAILS

Name :	RAUNAQ AUTOMOTIVE COMPONENTS LIMITED
Registered Office :	15^th Floor, Chiranjiv Tower, 43, Nehru Place, New Delhi – 110 019
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.07.1983
Com. Reg. No.:	55-016136
Capital Investment / Paid-up Capital :	Rs.79.316 millions
CIN No.: [Company Identification No.]	L34300DL1983PLC016136
TAN No.: [Tax Deduction & Collection Account No.]	DELR10338G DELR08435A
PAN No.: [Permanent Account No.]	AAACR1302D
Legal Form :	Public Limited Liability Company. The Company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Auto Components.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 669000
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

LOCATIONS

Registered Office/ Head Office :	15^th Floor, Chiranjiv Tower, 43, Nehru Place, New Delhi – 110 019, India
Tel. No.:	91-11-26418622/ 26418633/ 26418655
Fax No.:	91-11-26448962
E-Mail :	enquiries@raunaqauto.com
Website :	http://www.raunaqauto.com
Factory 1 :	A-3, Industrial Area, P.O. Gajraula, District Jyotibaphuley Nagar – 244 223, Uttar Pradesh, India
Tel. No.:	91-5924-252093/ 252272/ 253088
Fax No.:	91-5924-252276
Factory 2 :	H-201, Sector-63, Noida, District Gautam Budh Nagar, Uttar Pradesh, India
Branch Office :	Located at: v Delhi

DIRECTORS

As on 31.03.2011

Name :	Mr. Gursharan Singh
Designation :	Chairman and Managing Director
Name :	Mr. Madan Lal
Designation :	Director
Name :	Mr. Anil Sharma
Designation :	Director
Name :	Mr. Raj Kumar Kapoor
Designation :	Director (w.e.f. 28.10.2010)
Name :	Mr. D.R. Arya
Designation :	Director and Company Secretary

KEY EXECUTIVES

Name :	Mrs. Manju Gupta
Designation :	Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	97,335	1.09
Bodies Corporate	4,901,987	54.88
Sub Total	4,999,322	55.97
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4,999,322	55.97
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	500	0.01
Sub Total	500	0.01
(2) Non-Institutions
Bodies Corporate	241,866	2.71
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1,825,665	20.44
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	760,454	8.51
Any Others (Specify)	1,103,793	12.36
Clearing Members	52,393	0.59
Non Resident Indians	1,051,100	11.77
Trusts	300	-
Sub Total	3,931,778	44.02
Total Public shareholding (B)	3,932,278	44.03
Total (A)+(B)	8,931,600	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	8,931,600	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Auto Components.

Products :

Item Code No. (ITC Code)	87089900
Product Description	Automotive Gears

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars of Capacity (in tonnes)	Licensed Capacity	Installed Capacity
Automotive Gears/ Shafts	3000	*

* Installed capacity in tons will vary with product mix.

Particulars	Actual Production Nos.
Gear and Shafts :
(i) With Material	4571417
(ii) On Job Work Basis	13739

GENERAL INFORMATION

Customers :

v Piaggio

v Yamaha

v HERO

v Pottinger

v Trucktec

v Transmital Gears

v Lombaroini

v Areva

v Honda

v BRP

v Husqvarna

No. of Employees :

Not Available

Bankers :

v Bank of India

v AXIS Bank Limited

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Financial Institutions :
Interest free Sales Tax Loan from PICUP	62.624	71.761
From Banks :
-Cash Credit Limits	86.928	61.342
-Term Loans	97.699	70.922
From Others :
Car finance Company	2.645	3.256
Total	249.896	207.281

Banking Relations :	--
Statutory Auditors :
Name :	A. Sachdev and Company Chartered Accountants
Address :	New Delhi, India
Internal Auditors :
Name :	Gianender and Associates Chartered Accountants
Address :	New Delhi, India

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital : Rs.200.000 millions

Paid-up Capital : Rs.89.316 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
8440000	Equity Shares	Rs.10/- each	Rs.84.400 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
7931600	Equity Shares	Rs.10/- each	Rs.79.316 millions

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		79.316	79.316	81.216
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		88.018	62.065	35.305
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		167.334	141.381	116.521
LOAN FUNDS
1] Secured Loans		249.896	207.281	174.952
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		249.896	207.281	174.952
DEFERRED TAX LIABILITIES		25.626	14.585	8.072
TOTAL		442.856	363.247	299.545
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		355.853	295.449	214.273
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	160.816	117.414	95.649
	Sundry Debtors	89.458	71.555	69.047
	Cash & Bank Balances	2.003	0.460	2.946
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	37.450	29.129	17.647
Total Current Assets		289.727	218.558	185.289
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	143.017	104.999	61.186
	Other Current Liabilities	45.592	27.571	19.516
	Provisions	21.366	18.950	21.240
Total Current Liabilities		209.975	151.520	101.942
Net Current Assets		79.752	67.038	83.347
MISCELLANEOUS EXPENSES		7.251	0.760	1.925
TOTAL		442.856	363.247	299.545

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	819.964	646.515	577.885
		Other Income	19.515	8.480	14.203
		TOTAL (A)	839.479	654.995	592.088
Less	EXPENSES
		(Increase)/Decrease in Closing Stocks	(6.239)	(4.244)	(7.776)
		Raw Materials & Packing Material Consumed	414.720	314.155	305.593
		Payments & Provision for Employees	93.615	77.228	68.247
		Manufacturing Expenses	193.968	146.313	128.189
		Administration, Selling & Other Expenses	40.555	38.973	33.515
		Miscellaneous expenditure written off/(written back)	0.726	(0.301)	0.795
		Prior Period / Extraordinary items (net)	0.044	0.096	0.063
		TOTAL (B)	737.389	572.220	528.626
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		102.090	82.775	63.462
Less	FINANCIAL EXPENSES (D)		34.388	24.065	20.222
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		67.702	58.710	43.240
Less/ Add	DEPRECIATION/ AMORTISATION (F)		28.338	26.701	18.421
	PROFIT BEFORE TAX (E-F) (G)		39.364	32.009	24.819
Less	TAX (H)		13.411	7.149	3.975
	PROFIT AFTER TAX (G-H) (I)		25.953	24.860	20.844
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		55.770	30.910	10.066
	BALANCE CARRIED TO THE B/S		81.723	55.770	30.910
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on CIF basis	121.276	87.492	71.280
	TOTAL EARNINGS		121.276	87.492	71.280
	IMPORTS
		Machinery/Spare Part	19.721	28.233	10.631
	TOTAL IMPORTS		19.721	28.233	10.631
	Earnings Per Share (Rs.)		3.28	3.13	2.63

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	229.600	245.400	264.400
Total Expenditure	207.200	219.600	239.600
PBIDT (Excl OI)	22.400	25.800	24.800
Other Income	3.300	3.200	5.100
Operating Profit	25.700	29.000	29.900
Interest	9.900	11.400	12.900
Exceptional Items	0.000	0.000	0.000
PBDT	15.800	17.600	17.000
Depreciation	7.500	7.500	8.400
Profit Before Tax	8.300	10.100	8.600
Tax	1.500	1.800	1.500
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	6.800	8.300	7.100
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	6.800	8.300	7.100

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.09	3.80	3.52
Net Profit Margin (PBT/Sales)	(%)	4.80	4.95	4.29
Return on Total Assets (PBT/Total Assets}	(%)	6.10	6.23	6.21
Return on Investment (ROI) (PBT/Networth)		0.24	0.23	0.21
Debt Equity Ratio (Total Liability/Networth)		2.75	2.54	2.38
Current Ratio (Current Asset/Current Liability)		1.38	1.44	1.82

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	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	No
8) No. of employees	No
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	No
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	No

MANAGEMENT DISCUSSION AND ANALYSIS

The Global Economy 2010-11

The after effects of economic slow down witnessed in 2009 started fading away with start of 2010-11. The bailout packages provided by various Government to their respective economies had given the desired impact resulting into pick up of markets and particularly, there is a surge in demands from various Export segments from European, Japanese and American markets due to which Indian Economy is emerging out as one of leading producer economy in the world.

The global recession provided a food for thought to Indian economy to find ways and means for not only its survival but consistent growth. The Government policy in Financial sector proved to the world at large that Indian Banking system is one of the best system that did not yield to the very strong pressure of economic recession as it has shaken the major economic powers of the globe.

Though, Indian economy could not isolate itself totally from the after effects of global recession of 2009, but due to its own inherited strength and skills, it came to overcome the same, at a much faster pace as compared to world economy. Particularly Indian Automotive Industry, having a huge demand potential for automobiles, including automotive component manufacturing has regained its lost grounds and started performing as it was originally performing. Indian Industry learnt good lessons from this recession and it found its strength by resorting to its principles of global quality at low cost and timely delivery. Now both Domestic and Export, markets are in upward trend. In the forth coming Financial Year 2011-12 growth of the Indian Economy shall be much faster than the earlier expectations as per indications given by World Bank / IMF and other global institutions.

PERFORMANCE OF THE COMPANY

In the Financial Year 2010-2011, the company achieved an Income of Rs.912.500 millions as compared to Rs.701.700 millions in 2009-10 thus achieving a growth of 30%. The company achieved an operating profit of Rs.39.400 millions (PBT) as compared to Rs.32.000 millions (PBT) this registering a growth of 23% as compared to last year. The company has made a provision of Rs.13.400 millions on account of Income Tax / Deferred Tax Liabilities.

The company has a MAT credit of Rs.9.900 millions which shall be utilized/ adjusted for payment of Income Tax in future. Company has a surplus of Rs.81.700 millions in Profit and Loss Account.

The demand from their existing Customers has increased significantly and the company is fully geared up to meet the additional demand of OEM and Export Customers.

During the year, the company had been successful in capturing the business from some of the world renowned automotive manufacturers and its further impact shall be visible in the performance of the current year.

During the Financial Year, the company through its cost reduction schemes and various other VA/VE methods made a significant improvement in profits as compared to sales.

EXPORTS

The company has successfully broadened the export horizons during the year. Many prestigious MNCs have been included in their list of customers. The company is not only catering to their existing demand, but has also geared itself for their global requirement. In 2010-11, the company has improved its export sales significantly. It has been exporting goods to every part of globe, may be it is Asian countries, European Countries or USA. Their exports are very well accepted and are being appreciated for their good quality and competitive price.

During the year, the company achieved an export turnover of Rs.132.700 millions as against Rs.111.700 millions in 2009-10. Thus, achieving a growth of 19%. The Company has already tapped prestigious business from most reputed global brands. Their export customers are fully satisfied with the quality, timely delivery and cost competitiveness. In the current year they have targeted an overall export sales of Rs.190.500 millions.

FUTURE OUTLOOK

A YEAR OF ORGANIC GROWTH

The existing customers have given their indication of growth story, which has boosted the moral of the company to explore the new area of business. In the past year the company has commissioned world-class technology machines and production has already been started for their customers. With the commencement of new projects it shall grow with leaps and bounds, which are presently on the verge of releasing the bulk Production orders. Apart from that, they are also getting the business opportunities from multinational OEMs to bag their business to manufacture with this new installed technology. In order to meet the growing demand of Domestic and Export customers from all over the World and with ultimate decision of getting the business from such customers, the company has planned substantial capital investment to achieve the desired sales target.

THRUST ON BEST CORPORATE HR PRACTICES:

Company has taken vigorous steps to impart practical training to its work force at all levels, moreover, it has been providing better accommodation facilities and transport facilities with creating a homely working atmosphere. The company has introduced Lean Manufacturing concept throughout its operation through total employees involvement by incorporating best HR practices.

In order to boost the morale of the associates as well to ensure better earnings and maintain over all growth of employees of the company, they have started a productivity linked incentive scheme. The said scheme has been showing encouraging results and they are confident of better results in the forthcoming period.

INFRASTRUCURAL AND TECHNOLOGY UP GRADATION:

The company is consistently making investment in bringing in State of the Art Technology in the field of Gear Cutting, Heat Treatment and Gear Finishing processes. A consistent thrust on technology upgradation is being maintained to ensure technology level in line with global customers demand.

TAPPING NEW BUSINESS

The company has been exploring various avenues for development of new customers in Domestic and Export market by participating in Exhibition / National Auto Expo show / states sellers/buyers meets and other programmes organized by ACMA or other related agencies. With their new installed technology, now they are focusing to bag orders from world class OEMs in car segment also.

RACL-NEW UNIT AT NOIDA

The company has felt the need to resolve its logistic problem for prompt deliveries to its major domestic and global customers. In this direction the company has set up unit - II at NOIDA which is established primarily for carrying out the finished processes for select parts. The unit is successfully operational since February 2011.

IMROVEMENT IN QUALITY SYSTEM AND MANAGERIAL SYSTEMS

The vigorous efforts put in by management have yielded good results. The company has obtained ISO 14001 Environment Management System compliance.

NEW ERP SYSTEM

The Company has already engaged a leading software developer to broad base the existing ERP system which shall not only improve upon the existing system but also develop software programme in the areas of Production Planning, Machine utilization, inventory management and related areas.

MANUFACTURING EXCELLANCE AND DEMING PRIZE JOURNEY

The company has successfully completed its 2 years journey of ACT cluster programme and has also completed 1 year journey of sustenance programme. The success of above programmes have encouraged the company a lot and company has targeted for winning the DEMING PRIZE for Quality.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011 (Rs. in millions)
a. Outstanding amount of Letter of Credits	26.581
b. Bank Guarantee	Nil

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2011

(Rs. in millions)

S.No.		PARTICULARS	3 Months ended (31.12.2011) (Unaudited)	Year to date figures for current period ended (31.12.2011) (Unaudited)
1	(a)	Net Sales/Income from operations	264.400	739.400
	(b)	Other operating income	0.000	0.000
2		Expenditure
	(a)	(Increase)/decrease in stock in trade and work in progress	10.100	6.500
	(b)	Consumption of raw materials	122.900	365.600
	(c)	Purchase of traded goods	0.000	0.000
	(d)	Employees cost	30.400	79.200
	(e)	Depreciation	8.400	23.400
	(f)	Other expenditure	76.200	215.100
	(g)	Total  (Any item exceeding 10% of the total expenditure to be shown separately)	248.000	689.800
3		Profit from Operations before Other Income, Interest and Exceptional Items (1-2)	16.400	49.600
4		Other Income	5.100	11.600
5		Profit before Interest and Exceptional Items (3+4)	21.500	61.200
6		Interest	12.900	34.200
7		Profit after Interest but before Exceptional Items (5-6)	8.600	27.000
8		Exceptional items	0.000	0.000
9		Profit (+)/ Loss (-) from Ordinary Activities before tax (7+8)	8.600	27.000
10		Tax expense	1.500	4.800
11		Net Profit (+)/ Loss (-) from Ordinary Activities after tax (9-10)	7.100	22.200
12		Extraordinary Item (net of tax expense Rs. ________)	0.000	0.000
13		Net Profit(+)/ for the period (11-12)	7.100	22.200
14		Paid-up equity share capital (Face Value of the Share shall be indicated)	79.300	79.300
15		Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	0.000	0.000
16		Earnings Per Share (EPS)
	(a)	Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualized)	0.90	2.80
	(b)	Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year (not to be annualized)	0.90	2.80
17		Public Shareholding
	-	No. of shares	2933703	2933703
	-	Percentage of shareholding	36.99%	36.99%
18		Promoters and promoter group Shareholding **
	(a)	Pledged/Encumbered
	-	Number of shares	0	0
	-	Percentage of shares (as a % of the total shareholding of promoter and promoter group)	0.00%	0.00%
	-	Percentage of shares (as a% of the total share capital of the company)	0.00%	0.00%
	(b)	Non-encumbered
	-	Number of Shares	4997897	4997897
	-	Percentage of shares (as a% of the total shareholding of promoter and promoter group)	100%	100%
	-	Percentage of shares (as a % of the total share capital of the company)	63.01%	63.01%

Notes:

1. The Statutory Auditors of the company have conducted the Limited Review of the above Accounts.

2. Segment Reporting as defined in AS-17 is not applicable.

3. As reported by Mas Services Limited. The Company did not have any Investor complaints pending as on the quarter ended 31.12.2011.

4. The above audited results were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on 30.01.2012.

5. Previous figures of the Results/Public Shareholding have been rearranged/grouped.

FIXED ASSETS:

v Land

v Building

v Plant and Machinery

v Electrical Installation

v Furniture and Fixture

v Office and Miscellaneous Equipments

v Vehicle

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.53.84
UK Pound	1	Rs.86.72
Euro	1	Rs.69.17

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.