MIRA INFORM REPORT

Report Date :

21.05.2012

IDENTIFICATION DETAILS

Name :	LAMINA SUSPENSION PRODUCTS LIMITED
Registered Office :	8^th Floor, Ram Bhavan Complex, Kodiabail, Mangalore-575003, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.11.1975
Com. Reg. No.:	08-002910
Capital Investment / Paid-up Capital :	Rs.22.067 Millions
CIN No.: [Company Identification No.]	U27109KA1975PLC002910
TAN No.: [Tax Deduction & Collection Account No.]	BLRL00837E
PAN No.: [Permanent Account No.]	AAACL3061H
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Automobile Leaf Springs.
No. of Employees :	500 (Approximately)

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 183832
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 for business dealings at usual trade terms na conditions. .

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Avinash Shenoy
Designation :	Director
Contact No.:	91-9850734679
Date :	02.05.2012

LOCATIONS

Registered Office :	8^th Floor, Rama Bhavan Complex, Kodialbail, Mangalore-575003, Karnataka, India
Tel. No.:	91-824-2408679/2440556/2440561/2440587
Fax No.:	91-824-2440994
E-Mail :	mylamina@hotmail.com saliancs@gmail.com
Website :	http://www.laminasprings.com
Area :	Owned
Factory:	17/19 B, Industrial Area, Baikmpady, Mangalore-575011, Karnataka, India
Area :	Owned

DIRECTORS

AS ON 09.07.2011

Name :	Mr. Vinay N Hegde
Designation :	Managing Director
Address :	Sadanand Shiv Bagh, Kadri, Mangalore-575002, Karnataka, India
Date of Birth/Age :	02.04.1939
Date of Appointment :	26.11.1975

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	U27109KA1975PLC002910	LAMINA SUSPENSION PRODUCTS LIMITED	Managing director	01/10/2009	26/11/1975	-	Active	NO
2	L85110KA1981PLC004151	LAMINA FOUNDRIES LIMITED	Director	19/03/1981	19/03/1981	-	Active	NO
3	U29113KA1979PTC003671	LAMINA ENGINEERING COMPANY PRIVATE LIMITED	Director	09/06/1981	09/06/1981	-	Amalgamated	NO
4	U80210KA2011PTC057439	NITTE EDUCATION INTERNATIONAL PRIVATE LIMITED	Director	07/03/2011	07/03/2011	-	Active	NO

Name :	Mr. Ramesh T Shenoy
Designation :	Director
Address :	Vaishalya M.G. Cross Road, Kodialbail (West), Mangalore-575003, Karnataka, India
Date of Birth/Age :	13.04.1937
Date of Appointment :	26.11.1975

Other Directorship:

Top of Form

Bottom of Form

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	U27109KA1975PLC002910	LAMINA SUSPENSION PRODUCTS LIMITED	Whole-time director	01/10/2009	26/11/1975	-	Active	NO
2	U29113KA1979PTC003671	LAMINA ENGINEERING COMPANY PRIVATE LIMITED	Managing director	04/12/1979	04/12/1979	-	Amalgamated	NO
3	L85110KA1981PLC004151	LAMINA FOUNDRIES LIMITED	Director	19/03/1981	19/03/1981	-	Active	NO

Name :	Mr. Guru Prasad Adyanthaya
Designation :	Whole Time Director
Address :	SP 3, Hisg Race, Condominium Martin Pais Road, Hat Hill, Mangalore-575006, Dakshina Kannada, Karnataka, India
Date of Birth/Age :	10.09.1953
Date of Appointment :	26.11.1975

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	U27109KA1975PLC002910	LAMINA SUSPENSION PRODUCTS LIMITED	Whole-time director	01/10/2009	26/11/1975	-	Active	NO
2	U29113KA1979PTC003671	LAMINA ENGINEERING COMPANY PRIVATE LIMITED	Director	04/12/1979	04/12/1979	-	Amalgamated	NO
3	L85110KA1981PLC004151	LAMINA FOUNDRIES LIMITED	Director	19/03/1981	19/03/1981	-	Active	NO
4	U85110KA1989PTC009866	PADMASHREE HOSPITAL AND RESEARCH CENTRE PRIVATE LIMITED	Managing director	01/02/1991	01/02/1991	-	Active	NO
5	U65992KA1993PTC014700	LAMINA INVESTMENTS PRIVATE LIMITED	Director	01/09/1993	01/09/1993	-	Active	NO
6	U85110KA1992PTC013227	ELESPEE PRODUCTS PRIVATE LIMITED	Director	08/09/1995	08/09/1995	-	Active	NO

Name :	Mr. Vishal Hegde
Designation :	Director
Address :	Sadanand Shiv Bagh, Kadri, Mangalore-575002, Karnataka, India
Date of Birth/Age :	03.10.1971
Date of Appointment :	23.10.1998
Date of Ceasing:	17.08.2007

Other Directorship:

Top of Form

Bottom of Form

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	U27101KA1985PTC007105	MANMET ENGINEERING PRODUCTS PRIVATE LIMITED	Director	05/05/1992	05/05/1992	-	Active	NO
2	U85110KA1989PTC009866	PADMASHREE HOSPITAL AND RESEARCH CENTRE PRIVATE LIMITED	Director	30/09/1992	30/09/1992	-	Active	NO
3	U65992KA1993PTC014700	LAMINA INVESTMENTS PRIVATE LIMITED	Director	01/09/1993	01/09/1993	-	Active	NO
4	U85110KA1991PLC011617	LAMINA LEASING ANDFINANCE LIMITED	Director	08/08/1995	08/08/1995	-	Active	NO
5	U27109KA1975PLC002910	LAMINA SUSPENSION PRODUCTS LIMITED	Director	23/10/1998	23/10/1998	-	Active	NO
6	L85110KA1981PLC004151	LAMINA FOUNDRIES LIMITED	Director	24/09/1999	24/09/1999	-	Active	NO
7	U80210KA2011PTC057439	NITTE EDUCATION INTERNATIONAL PRIVATE LIMITED	Director	07/03/2011	07/03/2011	-	Active	NO

Name :	Mr. Jayaram Mulloly
Designation :	Director
Address :	Pusha Marnamikatta, Mangalore-575001, Dakshina Kannada, Karnataka, India
Date of Birth/Age :	14.02.1942
Date of Appointment :	30.09.1996

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	U27109KA1975PLC002910	LAMINA SUSPENSION PRODUCTS LIMITED	Director	30/09/1996	30/09/1996	-	Active	NO

Name :	Mr. Avinash Shenoy
Designation :	Director
Address :	Vaishalya, M G Road, Kodialguthu West, Mangalore-575003, Dakshina Kannada, Karnataka, India
Date of Birth/Age :	21.11.1977
Date of Appointment :	17.08.2007

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	U85110KA1992PTC013227	ELESPEE PRODUCTS PRIVATE LIMITED	Director	01/12/1995	01/12/1995	-	Active	NO
2	U85110KA1991PLC011617	LAMINA LEASING ANDFINANCE LIMITED	Director	26/06/2004	26/06/2004	-	Active	NO
3	U27109KA1975PLC002910	LAMINA SUSPENSION PRODUCTS LIMITED	Director	17/08/2007	17/08/2007	-	Active	NO

Name :	Mr. Surendra J Reddy
Designation :	Director
Address :	12/13, Langford Road, Bangalore-560025, Karnataka, India
Date of Birth/Age :	26.06.1937
Date of Appointment :	08.09.2008

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	U29253KA1968PTC001766	BANGALORE PENTA-TECH ENGINEERING PRIVATE LIMITED	Director	22/11/1968	22/11/1968	10/12/2010	Active	NO
2	U24210KA1972PLC002255	PROMAC ENGINEERING INDUSTRIES LIMITED	Managing director	01/04/2010	18/10/1972	-	Active	NO
3	U51909KA1984PTC006257	J.S.ENTERPRISES PRIVATE LIMITED	Director	04/10/2000	04/10/2000	30/12/2007	Strike off	NO
4	U26951UP1988PLC010111	JAYKAYCEM LIMITED	Director	29/05/2001	29/05/2001	-	Amalgamated	NO
5	L85110KA1981PLC004151	LAMINA FOUNDRIES LIMITED	Director	10/06/2003	10/06/2003	-	Active	NO
6	U27109KA1975PLC002910	LAMINA SUSPENSION PRODUCTS LIMITED	Director	08/09/2008	22/09/2007	-	Active	NO
7	U74140DL2005PTC137679	POWERTEC ENGINEERING PRIVATE LIMITED	Director	30/09/2010	12/07/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Kumaravel R
Designation :	Secretary
Address :	Grace 289, 32 Main J P Nagar, Bangalore-560078, Karnataka, India
Date of Birth/Age :	17.06.1939
Date of Appointment :	10.04.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 09.07.2011

Name of Shareholder	No of shares
N V Hegde	8833
T R Shenoy	13357
G P Adyanthaya	13626
Sujatha V Hegde	268
B R Adyanthaya	250
Indira S Shetty	50
Asha Y Ajila	110
Vatsala R Shetty	50
Sumitra R Shetty	100
Shambhavi V Shetty Archana Shetty	100
Sushmita Shetty	100
Surekha R Adyanthaya	25
Rathnavathi P Shetty	100
Bhavani Adyanthaya	100
Shalini R Shetty	50
B T Bhandary	50
Vidya R Hegde	50
U Sadanand Shetty	50
J Mohandas Prabhu	100
V Ravindra Babu	100
Mohini R Shenoy	410
N KamalaDevi V Kudva	50
S S Adyanthaya	100
Dr N Vishwanath Adyanthaya	380
N Santhosh Hegde	38
Arundathi K Ajila Chitrajith	50
Sharmila Kapur Divya Kapur Nikil Kapur	12
Chandralekha P Hegde	2
D Veerandra Heggade	2
Poornima Shenoy	80
Gopalkrishna Shenoy	80
Avinash Shenoy	80
Ashwitha Punja	1
Chandrakala G Raykar	40
Dinesh Prabhu	30
Shailesh Prabhu	30
Ramesh Prabhu	30
Sumana Prabhu	30
Vidya Prabhu	30
Nirmala Adyanthaya	240
Sucharitha R Hegde	100
Sujyothi Shetty	25
D Vinaya Kumar	25
Y Ruvindranath Bhal	25
Vishal Hegde	4770
Siocsh Chandra Miilpjni	6

AS ON 09.07.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	94.20
Other	5.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Automobile Leaf Springs.

Products :

Product Description	Item Code
Leaf Springs for Motor Vehicles	732010.01

Exports :

Products :

Automobile

Countries :

• Belgium
• United Kingdom
• Germany

Terms :

Selling :

Cash / Credit (30 days, 60 days)

Purchasing :

Cash / Credit (30 days, 60 days)

PRODUCTION STATUS (AS ON 31.03.2011)

Unit	Quantity (M.T)
Installed Capacity	12000
Actual Production	9962

Note: Production does not include the quantity of 206 MT (Previous year 226 MT) of springs produced on conversion basis.

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

500 (Approximately)

Bankers :

Syndicate Bank, Hampankatta Branch, Mangalore-575001, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Overdraft with Syndicate bank	68.345	76.837
Corporate Loan - Syndicate Bank	34.270	49.845
Term Loan - Lamina Employees Multi Purpose Co-Operative Society	9.026	9.327
Total	111.641	136.009
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Deposits from Shareholders and Others	40.840	34.270
Trade Deposits	24.593	13.892
Loans and Deposits from other Companies	61.946	56.491
Total	127.379	104.653

Note:

• Working capital loan as referred to in item no. (i) is secured by hypothecation of stock in trade, book debts and personal guarantees of Promoter Directors.

• Corporate loan as referred to in item no. (ii) is secured by pari passu charge on the entire fixed assets of the Company.

• Term loan as referred to in item no. (iii) is secured by mortgage of the Company's properties at Calicut, Vijayawada and Madurai. It is also secured by personal guarrantees of the promoter directors.

Banking Relations :	--
Auditors :
Name :	G Hariram Shenoy Chartered Accountant
Address :	No. 5 and 6 Sevashram Apartments, Bunts Hostel Road, Mangalore-575003, Karnataka, India
Associates/Subsidiaries :	Lamina Foundries Limited (L85110KA1981PLC004151) Lamina Engineering Company Private Limited Manment Engineering Products Private Limited Elespee Product Private Limited Lamina International General Engineering Services and Industries

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
45690	Equity Shares	Rs.500/- each	Rs.22.845 Millions
71550	Preferences Shares	Rs.100/- each	Rs.7.155 Millions
	Total		Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
44135	Equity Shares	Rs.500/- each	Rs.22.067 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		22.067	22.067	22.067
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		23.891	19.614	16.831
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		45.958	41.681	38.898
LOAN FUNDS
1] Secured Loans		111.641	136.009	138.967
2] Unsecured Loans		127.379	104.653	111.503
TOTAL BORROWING		239.020	240.662	250.470
DEFERRED TAX LIABILITIES		5.025	4.962	4.900
TOTAL		290.003	287.305	294.268
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		99.710	98.545	99.279
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		17.039	17.039	16.064
DEFERREX TAX ASSETS		0.625	0.625	0.625
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	174.472	120.728	136.641
	Sundry Debtors	154.880	151.219	145.139
	Cash & Bank Balances	29.973	58.226	29.939
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	29.686	21.786	30.013
Total Current Assets		389.011	351.959	341.732
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	174.975	136.149	133.271
	Other Current Liabilities	19.741	23.771	15.330
	Provisions	21.666	20.943	14.831
Total Current Liabilities		216.382	180.863	163.432
Net Current Assets		172.629	171.096	178.300
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		290.003	287.305	294.268

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	828.005	704.213	764.515
		Other Income	5.062	2.688	3.048
		TOTAL (A)	833.067	706.901	767.563
Less	EXPENSES
		Material and manufacturing expenses	601.705	507.450	592.156
		Employees remuneration and benefits	95.365	81.687	73.569
		Other expenses	58.962	44.865	41.870
		Excess provision of taxes for earlier years	0.000	0.000	(1.967)
		Prior period adjustments	0.000	0.000	0.000
		TOTAL (B)	756.032	634.002	705.628
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		77.035	72.899	61.935
Less	FINANCIAL EXPENSES (D)		41.376	40.115	37.008
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		35.659	32.784	24.927
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.235	8.613	8.073
	PROFIT BEFORE TAX (E-F) (G)		26.424	24.171	16.854
Less	TAX (H)		8.863	8.062	4.462
	PROFIT AFTER TAX (G-H) (I)		17.561	16.109	12.392
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.482	0.992	0.899
Less	APPROPRIATIONS
		Transfer to General Reserve	2.004	1.710	1.239
		Proposed Dividend on Equity Shares	11.034	11.034	8.827
		Proposed Dividend on Preferences Shares	0.000	0.000	0.626
		Corporate Dividend Tax	1.833	1.875	1.607
	BALANCE CARRIED TO THE B/S		5.172	2.482	0.992
	Earnings Per Share (Rs.)		398	365	281

Particulars	31.03.2012
Sales Turnover (Approximately)	900.000

Expected Sales (2012-2013) : Rs.1000.000 Millions

The above information has been parted by Mr. Avinash Shenoy (Director)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.11	2.28	1.61
Net Profit Margin (PBT/Sales)	(%)	3.19	3.43	2.20
Return on Total Assets (PBT/Total Assets}	(%)	5.41	5.37	3.82
Return on Investment (ROI) (PBT/Networth)		0.57	0.57	0.43
Debt Equity Ratio (Total Liability/Networth)		9.91	10.11	10.64
Current Ratio (Current Asset/Current Liability)		1.80	1.95	2.09

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	Yes
10) Designation of contact person	Yes
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	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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

OPERATIONS

The Company achieved a turnover of Rs.833.068 millions as against Rs.706.901 millions of previous year. In terms of quantity, the Company sold 9836 tons against 8884 tons sold during the previous year. The domestic market showed substantial improvement during the first half of the year. The market however showed some sluggishness during the last two quarters. During the year, the manufacturing cost under the heads like power and fuel, and salaries and wages increased substantially. The fuel cost kept on increasing due to oil price hike during the year under report. The wages also went up due to higher variable D.A and also due to general hike in Salaries and wages. These factors affected the profitability.

FUTURE OUTLOOK

The market which was very buoyant during the first half of the year under report went flat during the second half. The same condition continues during 2011-12 also. However the directors are confidant of achieving better results by way of extensive marketing strategies.

Fixed Assets:

• Freehold Land
• Building
• General Machinery
• Furniture and Fixtures
• Office Appliances
• Vehicles
• Plant and Machinery

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.54.87
UK Pound	1	Rs.86.46
Euro	1	Rs.69.48

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	SDA

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	YES
--LISTED	YES/NO	NO
--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	-

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.