MIRA INFORM REPORT

Report Date :

30.11.2012

IDENTIFICATION DETAILS

Name :	AVALON TECHNOLOGIES PRIVATE LIMITED
Registered Office :	B – 7, First Main Road, MEPZ-SEZ, Tambaram, Chennai – 600045, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.11.1999
Com. Reg. No.:	18-043479
Capital Investment / Paid-up Capital :	Rs.13.015 Millions
CIN No.: [Company Identification No.]	U30007TN1999PTC043479
TAN No.: (Tax Deduction & Collection Account No.)	CHEA07378A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Printed Circuit boards and packaging components.
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2050000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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 good for normal 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Srinivasan
Designation :	Accounts Officer
Contact No.:	91-44-42220547
Date :	27.11.2012

LOCATIONS

Registered Office / Factory :	B – 7, First Main Road, MEPZ-SEZ, Tambaram, Chennai – 600045, Tamil Nadu
Tel. No.:	91-44-2262 0095-96/ 4222 0400 / 4220 0524
Fax No.:	91-44-2262 0097 / 2262 0092
E-Mail :	avalonl@satyam.net.in tpi@avalontec.com bichatp@avalontec.com info@avalontech.com sales@avalontec.com
Website :	www.avalon.com www.avalontec.com
Overseas Office:	2130, Trade Zone Building, San Jose, Chartered Accountant 95131, U.S.A. Tel No :- 408 957 8885 (Extension 215) Fax No :- 408 957 8886 E-mail :- gerhardmueller@avalontec.com 42618 Christy Street, Fremont, CA 94538, USA. Phone :510-440-0200 Fax :510-440-0201 E-mail :sales@siennagroup.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Thayagath Puthan Vettil Imbichammad

Designation :

Managing Director

Address :

104 Defence Officers Colony, Chennai-600097, Tamilnadu, India

Date of Birth/Age :

09.04.1938

Date of Appointment :

03.11.1999

DIN :

00634769

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	U30007TN1999PTC043479	AVALON TECHNOLOGIES PRIVATE LIMITED	Managing director	3/11/1999	3/11/1999	-	Active	NO
2	U70102KL2002PTC015819	CHERUKAVU LAND DEVELOPMENT PRIVATE LIMITED	Director	7/2/2004	7/2/2004	20/01/2008	Active	NO
3	U72100TN2008PTC068955	AVALON TECHNOLOGY AND SERVICES PRIVATE LIMITED	Director	21/08/2008	21/08/2008	-	Active	NO
4	U72100TN2008PTC068956	SIENNA TECHNOLOGY AND SERVICES PRIVATE LIMITED	Director	21/08/2008	21/08/2008	-	Active	NO
5	U30007KA1997PTC022754	SIENNA ECAD TECHNOLOGIES PRIVATE LIMITED	Director	30/09/2009	4/6/2009	-	Active	NO

Name :

Mr. Kunhammad Bicha

Designation :

Director

Address :

1092 Yarwood Court Sanjose, California, U.S.A.

Date of Birth/Age :

12.04.1968

Date of Ceasing :

03.11.1999

DIN :

00819707

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U30007TN1999PTC043479	AVALON TECHNOLOGIES PRIVATE LIMITED	Director	3/11/1999	3/11/1999	Active	NO
2	U72200TN2002PTC049632	EMANTRAS INTERACTIVE TECHNOLOGIES PRIVATE LIMITED	Director	20/09/2002	20/09/2002	Active	NO
3	U30007KA1997PTC022754	SIENNA ECAD TECHNOLOGIES PRIVATE LIMITED	Director	30/09/2009	4/6/2009	Active	NO

Name :

Mr. Pallikadidy Maliyakkalmariyambicha

Designation :

Director

Address :

104 Defence Officers Colony, Chennai-600097, Tamilnadu, India

Date of Birth/Age :

16.08.1948

Date of Appointment :

03.11.1999

DIN :

00635028

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U30007TN1999PTC043479	AVALON TECHNOLOGIES PRIVATE LIMITED	Director	3/11/1999	3/11/1999	Active	NO
2	U72100TN2008PTC068955	AVALON TECHNOLOGY AND SERVICES PRIVATE LIMITED	Director	21/08/2008	21/08/2008	Active	NO
3	U72100TN2008PTC068956	SIENNA TECHNOLOGY AND SERVICES PRIVATE LIMITED	Director	21/08/2008	21/08/2008	Active	NO

Name :

Mr. Shamil Bicha Maliyakal

Designation :

Whole Time Director

Address :

104 Defence, Chennai – 600097, Tamilnadu, India

Date of Birth/Age :

13.08.1974

Date of Appointment :

01.04.2006

DIN :

01854618

Name :

Mr. Anand Kumar

Designation :

Whole Time Director

Address :

3, Gajapathy Road, Kilpauk, Chennai – 600010, Tamilnadu, India

Date of Birth/Age :

14.10.1967

Date of Appointment :

01.04.2006

DIN :

00818724

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U30007TN1999PTC043479	AVALON TECHNOLOGIES PRIVATE LIMITED	Director	1/4/2006	1/4/2006	Active	NO
2	U30007KA1997PTC022754	SIENNA ECAD TECHNOLOGIES PRIVATE LIMITED	Director	30/09/2009	4/6/2009	Active	NO

Name :

Mr. Bhaskar Srinivasan

Designation :

Director

Address :

1092 Yarwood Court Sanjose, California, U.S.A.

Date of Birth/Age :

03.06.1966

Date of Appointment :

03.11.1999

DIN :

02561215

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U30007TN1999PTC043479	AVALON TECHNOLOGIES PRIVATE LIMITED	Director	3/11/1999	3/11/1999	Active	NO
2	U72200TN2002PTC049632	EMANTRAS INTERACTIVE TECHNOLOGIES PRIVATE LIMITED	Director	20/09/2002	20/09/2002	Active	NO
3	U30007KA1997PTC022754	SIENNA ECAD TECHNOLOGIES PRIVATE LIMITED	Director	30/09/2009	4/6/2009	Active	NO

Name :

Mr. Sareday Seshu kumar

Designation :

Director

Address :

3, 3^rd Main Road, Indira Nagar, Adyar,Chennai-600020, Tamilnadu, India

Date of Birth/Age :

28.01.1969

Date of Appointment :

01.09.2001

DIN :

01646703

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U30007TN1999PTC043479	AVALON TECHNOLOGIES PRIVATE LIMITED	Director	1/9/2001	1/9/2001	Active	NO
2	U72200TN2002PTC049632	EMANTRAS INTERACTIVE TECHNOLOGIES PRIVATE LIMITED	Managing director	20/09/2002	20/09/2002	Active	NO
3	U30007KA1997PTC022754	SIENNA ECAD TECHNOLOGIES PRIVATE LIMITED	Director	30/09/2009	4/6/2009	Active	NO

KEY EXECUTIVES

Name :	Mr. Srinivasan
Designation :	Accounts Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
T P Imbichammad	62500
Mariyam Bicha	1250
Bhaskar Srinivasan	50000
Anand Kumar	5150
S. Seshu Kumar	11250
Total	130150

AS ON 30.09.2011

Equity Share breakup (percentage of total equity)
Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Printed Circuit boards and packaging components.
Products :	Printed Circuit Boards
Exports :
Products :	· Circuit Boards · Packaging Components.
Countries :	· Belgium · Europe · Dubai
Imports :
Products :	Raw Material
Countries :	· Singapore · Malaysia · China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS :- [As on 31.03.2010]

Particular	Unit	31.03.2010
Actual Production	Nos.	2466259

GENERAL INFORMATION

Customers :

End users

No. of Employees :

1500 (Approximately)

Bankers :

• State Bank of India, Leather International Branch, M V J Tower, Kilpauk, Chennai – 600010, Tamilnadu, India

• ICICI Bank Limited

• Barclays Bank PLC, 20/21, Kamaraj Salai, Kanchipuram-631501, Tamilnadu, India

• Indusind Bank Limited

• Standard Chartered Bank, Chennai, Tamilnadu, India

• Bank of India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee Term Loan from Banks	26.760	54.778
Working Capital Loans from Banks	615.138	454.368
Total	641.898	509.146

Banking Relations :

Satisfactory

Financial Institutions:

3i Infotech Trusteeship Services Limited

3^rd to 6^th Floor, International InfoTech Park, Tower No. 5, Vashi Railway Station Complex, Vashi Navi Mumbai – 400703, Maharashtra, India

Auditors :

Name :

Varma and Varma

Chartered Accountants

Address :

Sreela Terrace, 105, 1^st Main Road, Gandhi Nagar, Adyar, Chennai-600020, Tamilnadu, India

Tel No.:

91-44-24452239/ 24423496

Fax No.:

91-44-24454234

Email :

chennai@varmaandvarma.com

Pan No.:

AANPS1927M

Associates :

ABV Electronics Inc [Sienna Corporation], USA

Enterprise over which key management personnel or their relatives are able to exercise significant influence :

• Sienna E Card Technologies Private Limited
• Project Engineering Services
• Avalon Technology and Services Private Limited
• Sienna Technology and Services Private Limited

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Shares	Rs.100/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
130,150	Equity Shares	Rs.100/- each	Rs.13.015 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		13.015	13.015	13.015
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		501.654	426.517	367.389
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		514.669	439.532	380.404
LOAN FUNDS
1] Secured Loans		641.898	509.146	379.498
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		641.898	509.146	379.498
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1156.567	948.678	759.902
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		189.695	216.497	253.507
Capital work-in-progress		44.043	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		2.769	3.110	5.920
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	410.148	355.603	213.558
	Sundry Debtors	736.555	532.710	467.412
	Cash & Bank Balances	55.027	18.885	15.210
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	73.534	54.796	32.663
Total Current Assets		1275.264	961.994	728.843
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	305.962	194.718	179.434
	Current Liabilities	20.892	17.957	42.405
	Provisions	28.350	20.248	6.529
Total Current Liabilities		355.204	232.923	228.368
Net Current Assets		920.060	729.071	500.475
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1156.567	948.678	759.902

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income			993.470
	Other Income			2.101
	TOTAL	1739.743	1190.628	995.571
EXPENSES
	Office Expenses
	Administrative Expenses
	Advertising Expenses
	TOTAL	1569.787	1022.860	885.944
PROFIT / [LOSS] BEFORE TAX		96.616	77.209	109.627
TAX		21.479	18.081	[2.296]
PROFIT / [LOSS] AFTER TAX		75.137	59.128	111.923
EARNINGS IN FOREIGN CURRENCY
	FOB Value of Export	1663.548	1116.260	910.300
	Interest	12.225	10.459	0.000
TOTAL EARNINGS		1675.773	1126.719	910.300
IMPORTS		1092.876	772.757	497.800
Earnings/[Loss] Per Share (Rs.)		577.31	454.00	--

Particulars	31.03.2012
Sales Turnover (Approximately)	1940.000

Expected Sales (2012-2013) : Rs. 2250.000 Millions

The above information has been parted by Mr. Srinivasan

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.32	4.97	11.24
Net Profit Margin (PBT/Sales)	(%)	NA	NA	11.03
Return on Total Assets (PBT/Total Assets}	(%)	6.59	6.55	11.16
Return on Investment (ROI) (PBT/Networth)		0.19	0.17	0.29
Debt Equity Ratio (Total Liability/Networth)		1.94	1.69	1.60
Current Ratio (Current Asset/Current Liability)		3.59	4.13	3.19

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	No
Major Shareholders, if applicable	Yes
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	No

Operational Review :

During the year the company has achieved a turnover of Rs.1739.743 millions as compared to the last year of Rs. 1190.628 millions and resulted with a net profit after tax of Rs.75.137 millions as compared to the last year’s net profit of Rs.59.128 millions.

Bankers Charges Report as per Registry

Corporate identity number of the company	U30007TN1999PTC043479
Name of the company	AVALON TECHNOLOGIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-7 First Main Road, MEPZ-SEZ, Tambaram, Chennai – 600045, Tamil Nadu, India
This form is for	Modification of charge
Type of charge	Movable Property Immovable Property Others
Particular of charge holder	3i Infotech Trusteeship Services Limited 3^rd to 6^th Floor, International InfoTech Park, Tower No. 5, Vashi Railway Station Complex, Vashi Navi Mumbai – 400703, Maharashtra, India Email : ravindran.j@3i-itsl.com
Nature of instrument creating charge	Deed of Hypothecation dated 03.01.2011 and declatory affidavit dated 03.01.2011
Date of instrument Creating the charge	03.01.2011
Amount secured by the charge	Rs.556.100 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per credit arrangement letter Terms of Repayment As per credit arrangement letter Margin As per credit arrangement letter Extent and operation of the charge 1. Pari passu first charge on the entire current assets of the company. 2.Second paripassu charge over the movable fixed assets of the company excluding the plant and machinery proposed to be purchased out of the fresh Capex LC facility granted to the company by ICICI Bank Limited 3.Exclusive charge on plant and machinery proposed to be purchased out of the fresh Capex LC facility granted to the company by ICICI Bank Limited. 4.Second paripassu charge over the immovable properties.
Short particulars of the property charged	Pari passu first charge on entire stocks, consumable stores and spares and such other movables including book-debts, bills, outstanding monies and receivables both present and future of the Company. Second paripassu charge over the movable fixed assets of the company excluding the plant and machinery proposed to be purchased out of the fresh Capex LC facility granted to the company by ICICI Bank. Exclusive charge on plant and machinery proposed to be purchased out of the fresh Capex LC facility granted to the company by ICICI Bank Limited Second paripassu charge over the existing super structure / buildings constructed or to be constructed on the leased lands situated at Plot no: B-7 and B-8, MEPZ, Phase II, Tambaram Sanatorium, Chennai.
Date of last modification prior to the present modification	10.07.2009
Particulars of the present modification	Existing working capital limits of Rs.325.0 millions enhanced to Rs.556.10 millions. Fresh hypothecation charge and extension of mortgage over immovable created for the enhanced limits. Hence present modification is filed.

Corporate identity number of the company	U30007TN1999PTC043479
Name of the company	AVALON TECHNOLOGIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	A-1/D, Anugraha Apartments, 19, Nungambakkam High Road, Chennai-600034, Tamilnadu, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Others
Particular of charge holder	Barclays Bank PLC, 20/21, Kamaraj Salai, Kanchipuram-631501, Tamilnadu, India
Nature of instrument creating charge	Deed of Hypothecation
Date of instrument Creating the charge	29.07.2009
Amount secured by the charge	Rs.150.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be specified by the Bank form time to time Terms of Repayment As may be specified by the Bank form time to time Margin As may be specified by the bank from time to time Extent and operation of the charge First pari passu charge on current assets of the company, both present and future, in favour of Barclays Bank Plc, to secure the repayment facilities granted by the bank to the company. Second pari passu charge on moveable fixed assets of the company, both present and future, in favour of Barclays Bank Plc, to secure the repayment facilities granted by the bank to the company.
Short particulars of the property charged	Current Assets and Moveable Fixed Assets of the company. More particularly described on schedule 2 to the Deed of Hypothecation

FIXED ASSETS:-

• Leasehold Building
• Machinery
• Air Conditioner
• Computers
• Cycle
• Electrical Fittings
• Furniture and Fittings
• Vehicles
• Office Equipment
• Fire Protection Equipment
• Weighing Machine

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 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.55.20
UK Pound	1	Rs.88.38
Euro	1	Rs.55.20

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.