MIRA INFORM REPORT

Report Date :

02.10.2012

Tel No.:

02135-640000

IDENTIFICATION DETAILS

Name :	NEEL AUTO PRIVATE LIMITED (w.e.f. 26.09.2012)
Formerly Known As :	THAI SUMMIT NEEL AUTO PRIVATE LIMITED
Registered Office :	601, Hemkunt Chambers, 89, Nehru Place, New Delhi – 110 019
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation/	02.12.2003
Com. Reg. No.:	55-123285
Capital Investment / Paid-up Capital :	Rs.510.000 Millions
CIN No.: [Company Identification No.]	U34300dl2003ptc123285
PAN No.: [Permanent Account No.]	AABCT9860D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Two Wheeler Parts.
No. of Employees :	2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 2200000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a Joint Venture between JBM Group of India and Thai Summit Group of Thailand. It is an established company having moderate track. Profitability appears to be low. However, the company has recorded a better increased in its sales turnover during 2011. Trade relations are reported as decent. Business is active. Payments are reported to be low but correct. The company can be considered for business dealing with slight caution.

NOTES:

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	(Term Loans) BBB-
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation, it carry moderate credit risk.
Date	22.02.2012

RBI DEFAILTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAILTERS’ 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. Harish Sharma
Designation :	Account and Finance Manager
Contact No.:	91-9711682280
Date :	29.09.2012

LOCATIONS

Registered Office :	601, Hemkunt Chambers, 89, Nehru Place, New Delhi – 110019, India
Tel. No.:	91-11-42099920/ 26427104/ 29522570/ 571
Mobile No.:	91-9711682280
Fax No.:	91-11-26427100/ 29521512
E-Mail :	papas@tsneel.com raviarora@jbm.co.in nishant@jbm.co.in guptarajiv1091@gmail.com harishsharma@tsneel.com
Website :	www.jbm-group.com http://www.tsneel.com
Location :	Owned
Factory 1 :	Plot No. 4, Sector 10, I.I.E Pantnagar, U. S. Nagar, Uttarakhand, India
Fax No.:	91-5494-250134
	91-5494-250133
Location :	Owned
Factory 2 :	Plot No.1 and 6, TVS Industrial Estate, Hosur – 635126, Tamilnadu, India
	91-4344-277756 275478/ 276318/ 276223
	91-4344-277785
Location :	Owned
Factory 3 :	Behrampur Industrial Area, Begampur, Khatola Road, Village Khandsa, Gurgaon – 122001, Haryana, India
Tel No.:	91-124-4199500/ 501
Fax No.:	91-124-4199549
E-Mail:	thaisummit@tsneel.com aupadhya@tsneel.com aupandhya@jbm.co.in
Factory 4 :	C-1, MIDC, Chakan Industrial Area, Chakan, Pune – 410501, Maharashtra, India
Tel No.:	91-2135-664000
	91-2135-664031/ 32
Factory 5:	Plot No.128, Village Rajpura, Bharatgarh Road, Nalagarh, District Solan, Himachal Pradesh, India
Tel No.:	91-1795-220152
Factory 6:	Plot No.322, Sector-3, Phase – II, GWC Bawal, Haryana, India
Branch Office :	Plot No. 8, Sector 10, I.I.E. Pantnagar, U. S. Nagar, Uttarakhand, India
Tel No.:	91-999-7304443
Other Branches :	Located at: v Delhi v Gurgaon v Noida

DIRECTORS

(AS ON 30.09.2011)

Name :	Mr. Surendra Kumar Arya
Designation :	Director
Address :	Neelanchal No.7, Bandh Road, Chandan – Hulla, Mehrauli, New Delhi – 110 030, India
Date of Birth/Age :	10.11.1957
Date of Appointment :	02.12.2003
DIN No.:	00004626
Name :	Mr. Bharat Bhushan Gupta
Designation :	Director
Address :	L – 19/17, Ground Floor, DLF – Phase – III, Gurgaon – 122 002, Haryana, India
Date of Birth/Age :	16.10.1955
Date of Appointment :	15.12.2003
DIN No.:	00004733
Name :	Mr. Anand Swaroop Khandelwal
Designation :	Director
Address :	C – 5A/ 14, Second Floor, Janakpuri, New Delhi – 110 058, India
Date of Birth/Age :	07.10.1960
Date of Appointment :	15.12.2003
DIN No.:	00004816
Name :	Mr. Nishant Arya
Designation :	Director
Address :	Neelanchal No.7, Bandh Road, Chandan – Hulla, Mehrauli, New Delhi – 110030, India
Date of Birth/Age :	01.11.1986
Date of Appointment :	24.09.2009
DIN No.:	00004954
Name :	Mr. Channarong Lelanpaparn
Designation :	Director
Address :	69/67, Moo – 3, Pravei – Bangkok, Thailand
Date of Birth/Age :	22.11.1952
Date of Appointment :	15.12.2003
DIN No.:	01474289
Name :	Mr. Thanathorn Juangroongruangkit
Designation :	Director
Address :	157, Moo – 9, Dokmai Pravej – Bangkok, Thailand
Date of Birth/Age :	25.11.1978
Date of Appointment :	15.12.2003
DIN No.:	01474342
Name :	Mrs. Somporn Juangroongruangkit
Designation :	Director
Address :	157, Moo – 9, Dokmai Pravej – Bangkok, Thailand
Date of Birth/Age :	17.04.1951
Date of Appointment :	15.12.2003
DIN No.:	02786287
Name :	Mr. Somchai Chongcharoenthaweesuk
Designation :	Director
Address :	99/179, M005 M Plukpi Lom – Bangkuntien, Rama-2, SA-MEA-DUM, Bangkuntien-Bangkok, Thailand 10150
Date of Birth/Age :	31.10.1954
Date of Appointment :	16.09.2010
DIN No.:	03163412

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Thai Summit Autoparts Industry Company Limited, Thailand	5100000
Somporn Juangroongruangkit	10200000
Chanapun Juangroongrugkit	5100000
Thanathom Juangroongruangkit	5100000
Neel Metal Products Limited, India	25500000
Total	51000000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	10.00
Bodies corporate	50.00
Directors or relatives of directors	40.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Two Wheeler Parts.

Products :

Products Description	Item Code No.
Parts for two wheelers	87141900

Imports :

Products :

Raw Materials

Countries :

· Thailand

· China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Actual Production
Licensed Capacity	N.A.
Installed Capacity (On Double Shift Basis) MT	105120
Production (In Nos.) Sheet Metal and Tubular Component for Automobiles	16077950

GENERAL INFORMATION

Suppliers :

· ANS Steel

Customers :

Retailers and End Users

· Mahindra and Mahindra

No. of Employees :

2000 (Approximately)

Bankers :

v HDFC Bank Limited

HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

v Canara Bank,

Prime Corporate Branch - II, World Trade Tower, Barakhamba Lane, New Delhi – 110 001, India

v State Bank of India,

Industrial Finance Branch, Chennai, Tamilnadu, India

v Canara Bank,

M.M. reddy Complex, Old Bangalore Road, Hosur – 635109, Tamilnadu, India

v Standard Chartered Bank,

Narain Manzil, 23, Barakhamba Road, New Delhi – 110001, India

v ICICI Bank Limited

v State Bank of Mysore

v Axis Bank

v Yes Bank

v Kotak Mahindra Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	767.301	896.531
Rupee term loans financial institutions secured	0.000	30.004
Working capital loans banks secured	685.984	387.463
Loans taken for vehicles secured	0.556	0.612
Interest accrued due other debt secured	20.105	21.352
Total	1473.946	1335.962

Banking Relations :	--
Auditors :
Name :	Sahni natrajan and bahl Chartered Accountants
Address :	303, mansarovar, 90, Nehru Place, New Delhi – 110019, India
Tel. No.:	91-11-26224755/ 26433003/ 3004/ 3005/ 47347000
Fax No.:	91-11-26485081
E-Mail :	snb@snbindia.com
Income-tax PAN of auditor or auditor's firm :	AABFS5696R
Group Companies (As on 31.03.2010) :	v ANS Tubes v Arcelor Neel Tailored Blank Private Limited v Jaico Steel Fasteners v Jay Bharat Exhaust Systems v Jay Bharat Maruti Limited v JBM Auto Limited v JBM Auto Systems Limited v JBM Industries v JBM Cadmium Private Limited v Neel Industries Private Limited v Neel Metal Fanalca Environment Management Private Limited v Neel Metal Products Limited
Joint Venture and Associates (As on 31.03.2010) :	v Thai Summit Auto Parts Industry Company Limited v Thai Summit R and D Next Technology company Limited v Neel Metal Products Limited v PT Indonesia v ANS Steel Tubes Limited v Thai Summit Harness Public Company

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
55000000	Equity Shares	Rs.10/- each	Rs.550.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
54765050	Equity Shares	Rs.10/- each	Rs.547.651 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
55000000	Equity Shares	Rs.10/- each	Rs.550.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
51000000	Equity Shares	Rs.10/- each	Rs.510.000 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		510.000	510.000	510.000
2] Share Application Money		13.142	1.142	1.142
3] Reserves & Surplus		31.470	12.349	0.000
4] (Accumulated Losses)		0.000	0.000	(6.230)
NETWORTH		554.612	523.491	504.912
LOAN FUNDS
1] Secured Loans		1473.946	1335.962	1260.860
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1473.946	1335.962	1260.860
DEFERRED TAX LIABILITIES		28.519	25.116	0.000
TOTAL		2057.077	1884.569	1765.772
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1777.912	1666.562	1624.048
Capital work-in-progress		124.541	120.254	155.961
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	267.949	244.499	142.771
	Sundry Debtors	1119.779	985.681	384.505
	Cash & Bank Balances	67.741	24.670	14.428
	Other Current Assets	81.672	36.334	0.000
	Loans & Advances	54.676	42.546	67.280
Total Current Assets		1591.817	1333.730	608.984
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1341.794	1143.015	522.477
	Other Current Liabilities	82.685	75.672	93.339
	Provisions	12.714	17.290	7.405
Total Current Liabilities		1437.193	1235.977	623.221
Net Current Assets		154.624	97.753	(14.237)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2057.077	1884.569	1765.772

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	8658.660	6031.341	4151.787
		Other Income	10.220	5.985	17.302
		TOTAL (A)	8668.880	6037.326	4169.089
Less	EXPENSES
		Raw Material Consumed		4748.307	3193.649
		Employees Remuneration and Benefits		422.931	302.019
		Manufacturing, Administrative and Other Expenses	8329.140	562.799	420.722
		Prior Period Expenses		0.000	1.281
		Increase/ Decrease in Stock		(15.987)	5.270
		TOTAL (B)	8329.140	5718.050	3922.941
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		339.740	319.276	246.148
Less	FINANCIAL EXPENSES (D)		177.920	145.507	140.252
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		161.820	173.769	105.896
Less/ Add	DEPRECIATION/ AMORTISATION (F)		137.180	119.964	113.865
	PROFIT BEFORE TAX (E-F) (G)		24.640	53.805	(7.969)
Less	TAX (H)		5.520	35.226	(2.963)
	PROFIT AFTER TAX (G-H) (I)		19.120	18.579	(5.006)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(6.230)	(1.224)
	BALANCE CARRIED TO THE B/S		NA	12.349	(6.230)
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	NA	0.922	5.521
	TOTAL EARNINGS		NA	0.922	5.521
	IMPORTS
		Store & Spares	NA	2.513	0.000
		Raw Materials	NA	4.112	24.127
		Capital Goods	NA	7.157	2.736
	TOTAL IMPORTS		NA	13.782	26.863
	Earnings Per Share (Rs.)		1.27	0.36	(0.10)

Particulars	31.03.2012
Sales Turnover (Approximately)	9250.000

Expected Sales (2012-13): Rs.10000.000 Millions

The above information has been parted by Mr. Harish Sharma.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.22	0.31	(0.12)
Net Profit Margin (PBT/Sales)	(%)	0.28	0.89	(0.19)
Return on Total Assets (PBT/Total Assets}	(%)	0.73	1.79	(0.36)
Return on Investment (ROI) (PBT/Networth)		0.04	0.10	(0.02)
Debt Equity Ratio (Total Liability/Networth)		5.25	4.91	3.73
Current Ratio (Current Asset/Current Liability)		1.11	1.08	0.98

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditor
-Creditors due small micro enterprises	0.000	0.000	0.000
-Creditors due others	1341.794	1143.015	522.477
Total	1341.794	1143.015	522.477

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
Promoter’s 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 in the business	Yes
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	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	Yes

NOTE:

The registered office of the company has been shifted from Neel House, Lado Sarai Opposite Qutab Minar, New Delhi – 110 030 to the present address w.e.f. 03.07.2010.

BUSINESS PERFORMANCE:

The company recorded Net sales of Rs.9115.480 million as against Rs.6291.400 Million last year thereby recording an increase of 45%. The Company also recorded a Profit before Depreciation Interest and Tax of Rs.339.74 as against Rs.319.280 million in the previous year. There is a nominal increase in the profit as compared to 45% growth in sales. Market price for consumable and other items are increasing year on year. Automobile industry is experiencing good market growth.

TWO WHEELER INDUSTRY TRENDS

The automobile industry in general and two wheeler industry in particular has shown a tremendous growth over the recent years. The two wheeler domestic sales were 11.79 million units for 2010-11 against last year 9.36 million in 2009-10 an increase of 25.96.%

Category	2010-11 In Thousand Nos.	2009-10 In Thousand Nos.
Scooters	2074	1462
Motorcycles	9019	7341
Mopeds Other Two Wheelers	697	564
Grand Total	11790	9367

CONTINGENT LIABILITIES NOT PROVIDED FOR

Description	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
a) Shipping Guarantee	NA	0.400
b) Estimated amount of contract remaining to be executed on capital account and not provided for (Net of advances)	NA	41.099

TRADE REFERENCE:

· ANS Steel

· Mahindra and Mahindra

form 8:-

Corporate identity number of the company	U34300dl2003ptc123285
Name of the company	THAI SUMMIT NEEL AUTO PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	601, Hemkunt Chambers, 89, Nehru Place, New Delhi – 110 019, India E-Mail: raviarora@jbm.co.in
This form is for	Modification of charge
Charge identification number of the modified	10179460
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Canara Bank, Prime Corporate Branch - II, World Trade Tower, Barakhamba Lane, New Delhi – 110 001, India E-Mail: crmgrdelhi1942@canbank.co.in
Nature of description of the instrument creating or modifying the charge	Agreement for creating second charge on movable property dated 14.12.2010
Date of instrument Creating the charge	14.12.2010
Amount secured by the charge	Rs.200.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: As per sanctioned terms. Terms of Repayment: As per sanctioned terms. Margin: As per sanctioned terms. Extent and Operation of the charge: First Charge on inventory and receivables and all other current assets of the Hosur Unit. Others: The above is to secure OCC (Stocks and Book Debts) Limit of Rs.20.000 millions, Supply Bills of Rs.100.000 millions and ILC/FLC (DA/DP) Limit of Rs.80.000 millions aggregating Rs.200.000 millions granted to the Company together with all interests, costs, charges, expenses etc.
Short particulars of the property charged	Exclusive First Charge on inventory and receivables and all other current assets of the Hosur Unit.
Particulars of the present modification	Existing Credit facilities of Rs.200.000 millions stands collaterally secured by 2^nd Charge on Plant and Machinery, Tools, Jigs and Fixtures, Electrical Installations, Furniture, Fixture and Office Equipments, IT Equipments valuing Rs.349.570 millions situated at Plot No. 1 and 6, TVS Industrial Estate, Harita, Hosur (Tamilnadu). Now the account has been shifted to Canara Bank, Prime Corporate Branch - II, World Trade Tower, Barakhamba Lane, New Delhi Other terms and conditions remained the same.

FIXED ASSETS:

Tangible Assets

v Land – Leasehold

v Building

v Leasehold Improvements

v Plant and Machinery

v Tools, Jigs and Fixtures

v Electrical Installations

v Furniture, Fixture and Office Equipments

v IT Equipments

v Air Conditioners

v Vehicles

Intangible Assets

v Non-Compete Fee

WEBSITE DETAILS:

PROFILE:

Subject is a joint venture company between JBM Group of India and Thai Summit Group of Thailand. Having started its operations in April 2005, the company has latest and ultra-modern facilities in its various plants situated at Gurgaon, Hosur, Pune and Pantnagar. The facilities include Pressing, Welding, Pipe Bending, Painting, Special Purpose Machines (SPM's) and Powder coating machines.

Almost all major two-wheeler manufacturers (motorcycle and scooters) in India are this company’s esteemed and delighted customers.

A vast range of products of this venture include parts of the two-wheeler such as Fuel tanks, assemblies, guards, tubular frames and complete mufflers.

Their Thailand based JV partner, Thai Summit Group is a 30 years old group with over 30 plants dealing with the manufacturing of automotive and agricultural machine parts.

In India, subject is poised to become No.1 in part supplier of components for two wheeler manufacturers across 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.52.70
UK Pound	1	Rs.85.71
Euro	1	Rs.68.15

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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		35

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.