MIRA INFORM REPORT

Report Date :

06.10.2012

IDENTIFICATION DETAILS

Name :	AUTO CNC MACHINING LIMITED (w.e.f. 27.11.2006)
Formerly Known As :	AUTO CNC MACHINING PRIVATE LIMITED
Registered Office :	Plot No. 282, 4^th Main Road, Peenya Industrial Area, 4^th Phase, Bangalore – 560058, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.06.1987
Com. Reg. No.:	08-008415
Capital Investment / Paid-up Capital :	Rs. 4.950 millions
CIN No.: [Company Identification No.]	U02922KA1987PLC008415
TAN No.: [Tax Deduction & Collection Account No.]	BLRA00391G
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturers and Exporters of electrical, mechanical and all other kinds of machinery, equipments, precision tools and their components.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 524000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having good track record. Financially company performance seems good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealing 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.

LOCATIONS

Registered Office :	Plot No. 282, 4^th Main Road, Peenya Industrial Area, 4^th Phase, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-41170235
Fax No.:	91-80-23724957/ 41170236
E-Mail :	havaldar@autocnc.co.in acnc@sify.com

DIRECTORS

As on 01.09.2012

Name :

Mr. Srinivas Govindrao Shirgurkar

Designation :

Director

Address :

No. 586, 1^st Main, 2^nd Stage, 3^rd Block, RMV Extension, Bangalore – 560 094, Karnataka, India

Date of Birth/Age :

08.04.1948

Date of Appointment :

11.06.1987

DIN No.:

00173944

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Managing director	01/07/2010	25/09/1986	-	Active	NO
2	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
3	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	07/03/1994	07/03/1994	-	Active	NO
4	U85110KA1995PLC018544	ACE MULTI AXES SYSTEMS LIMITED	Director	16/08/1995	16/08/1995	-	Active	NO
5	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LTD	Director	30/08/1996	30/08/1996	-	Active	NO
6	U34300KA2005PTC037594	PRAGATI TRANSMISSION PRIVATE LIMITED.	Director	03/11/2005	03/11/2005	-	Active	NO
7	L85110KA1980PLC003913	WENDT INDIA LIMITED	Director	17/04/2006	17/04/2006	-	Active	NO

Name :

Mr. Benedict Machado

Designation :

Director

Address :

No. 583, 1^st Main, 2^nd Stage, 3^rd Block, RMV Extension, Bangalore – 560 094, Karnataka, India

Date of Birth/Age :

04.12.1948

Date of Appointment :

11.06.1987

DIN No.:

00174074

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Managing director	01/07/2010	25/09/1986	-	Active	NO
2	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
3	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	07/03/1994	07/03/1994	-	Active	NO
4	U85110KA1995PLC018544	ACE MULTI AXES SYSTEMS LIMITED	Director	16/08/1995	16/08/1995	-	Active	NO
5	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LTD	Director	30/08/1996	30/08/1996	-	Active	NO
6	U34300KA2005PTC037594	PRAGATI TRANSMISSION PRIVATE LIMITED.	Director	03/11/2005	03/11/2005	-	Active	NO

Name :

Mr. Ashok Vishwanath Sathe

Designation :

Director

Address :

No. 252, 15^th D Cross 2^nd Stage, Mahalakshmipuram, Bangalore – 560 086, Karnataka, India

Date of Birth/Age :

17.09.1940

Date of Appointment :

11.06.1987

DIN No.:

00174204

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Whole-time director	01/07/2010	25/09/1986	-	Active	NO
2	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
3	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LTD	Director	01/02/1988	01/02/1988	-	Active	NO
4	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	07/03/1994	07/03/1994	-	Active	NO
5	U85110KA1995PLC018544	ACE MULTI AXES SYSTEMS LIMITED	Director	16/08/1995	16/08/1995	-	Active	NO
6	U29199KA2001PTC029247	PRAGATI AUTOMATION PRIVATE LIMITED	Director	05/07/2001	05/07/2001	-	Active	NO
7	U22100PN2007PTC130644	UDYAM PRAKASHAN PRIVATE LIMITED	Director	03/09/2007	03/09/2007	-	Active	NO
8	U29253KA2011PTC060244	PRAGATI CONTROL SYSTEMS PRIVATE LIMITED	Director	05/09/2011	05/09/2011	-	Active	NO

Name :

Mr. Prabhakara Sreekantaiah

Designation :

Director

Address :

No. 1275, 7^th Cross, 5^th Stage, Beml layout, Rajaeswari Nagar, Bangalore Urban, Bangalore – 560 039, Karnataka, India

Date of Birth/Age :

09.10.1947

Date of Appointment :

11.06.1987

DIN No.:

00231910

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
2	U29219KA2006PTC039636	PRIDE MACHINERY MANUFACTURING PRIVATE LIMITED	Director	05/06/2006	05/06/2006	-	Active	NO

Name :

Mr. Hariharapura Lingappaiah Ramesh

Designation :

Director

Address :

No. 1273, 7^th Cross, 5^th Stage, Beml layout, Rajaeswari Nagar, Bangalore Urban, Bangalore – 560 039, Karnataka, India

Date of Birth/Age :

28.12.1951

Date of Appointment :

11.06.1987

DIN No.:

00552790

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
2	U85110KA1995PLC018544	ACE MULTI AXES SYSTEMS LIMITED	Managing director	21/08/2010	21/08/1995	-	Active	NO

Name :

Mr. Arvind Bhimsenrao Mutgi

Designation :

Managing Director

Address :

No. 76, KHB Colony, 1^st Stage, Adhalli Vijaya Nagar North, Bangalore – 5460 079, Karnataka, India

Date of Birth/Age :

01.07.1947

Date of Appointment :

01.09.2010

DIN No.:

00564708

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Managing director	01/09/2010	11/06/1987	-	Active	NO
2	U29299KA2002PTC031340	ACE SUPER AUTO FORGE PRIVATE LIMITED	Director	11/12/2002	11/12/2002	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 01.09.2012

Names of Shareholders	No. of Shares
Mr. Srinivas Govindrao Shirgurkar	10560
Mr. Benedict Machado	10560
Mr. Ashok Vishwanath Sathe	10560
Mr. H.L Ramesh	1485
Mr. B. M. Arvind	9900
Mr. S. Prabhakara	2475
Mr. C. Sowmini	1485
Mr. Vinayak D Kamat	2475
Total	49500

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of electrical, mechanical and all other kinds of machinery, equipments, precision tools and their components.

Products :

ITC Code	Product Descriptions
87149100	Auto Engineering Components

· Turning

· Milling

· Automation

· Productivity Solutions

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Specialised MID Corporation Branch, No. 97, Railway Parallel Road, Kumarapark West, Bangalore – 560 020, Karnataka, India

· Axis Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Loans State Bank of India (Secured against hypothecation of Current Assets and second charge on movable and immovable assets of the company)	0.000	10.071
Total	0.000	10.071
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loan from Directors	10.200	10.650
Total	10.200	10.650

Banking Relations :	--
Auditors :
Name :	P. A. Ghatage and Company Chartered Accountants
Address :	2/10, BDA Flats Cambridge Layout Extension, Bangalore – 560 008, Karnataka, India
Tel. No.:	91-80-25369900
Mobile No.:	91-9844152959
Fax No.:	91-80-25569011
E-Mail :	paghattage@gmail.com
PAN No.:	AANPG1439N
Associates/Subsidiaries :	S. Designers Limited Address: Peenya Industrial Estate, Bangalore, Karnataka, India Line of Business: Manufacturers of CNC Machines Directors: · Mr. Benedict Machado · Mr. Srinivas Shrigurkar · Mr. A. V. Sathe

CAPITAL STRUCTURE

As on 01.09.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 100/- each	Rs. 5.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
49500	Equity Shares	Rs. 100/- each	Rs. 4.950 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		4.950	4.950	4.950
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		126.189	87.367	64.942
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		131.139	92.317	69.892
LOAN FUNDS
1] Secured Loans		0.000	10.071	26.846
2] Unsecured Loans		10.200	10.650	20.650
TOTAL BORROWING		10.200	20.721	47.496
DEFERRED TAX LIABILITIES		8.273	8.404	9.022
TOTAL		149.612	121.442	126.410
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		103.423	106.695	110.978
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.900	1.900	1.900
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.811	0.000	0.000
	Sundry Debtors	69.717	0.000	0.000
	Cash & Bank Balances	9.001	0.000	0.000
	Other Current Assets	30.669	139.834	112.950
	Loans & Advances	9.850	0.000	0.000
Total Current Assets		126.048	139.834	112.950
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.110	20.489	61.716
	Other Current Liabilities	18.856	46.013
	Provisions	41.793	60.485	37.702
Total Current Liabilities		81.759	126.987	99.418
Net Current Assets		44.289	12.847	13.532
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		149.612	121.442	126.410

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	267.181	187.645	164.696
		Labour charges	28.768	19.241	17.408
		Other Income	0.398	0.050	0.467
		TOTAL (A)	296.347	206.936	182.571
Less	EXPENSES
		Manufacturing Expenses	151.503	103.642	105.408
		Administrative Expenses	1.756	1.842	1.359
		Employee Remuneration and Benefits	40.267	28.079	22.197
		Selling and Distribution Expenses	5.038	4.629	3.051
		Other Expenses	0.788	0.692	7.426
		TOTAL (B)	199.352	138.884	139.441
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		95.995	68.052	43.130
Less	FINANCIAL EXPENSES (D)		1.714	4.643	3.942
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		95.281	63.409	39.188
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.560	14.476	14.885
	PROFIT BEFORE TAX (E-F) (G)		80.721	48.933	24.303
Less	TAX (I)		27.516	17.821	8.512
	PROFIT AFTER TAX (G-I) (J)		53.250	31.112	15.791
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		75.636	56.322	46.531
Less	APPROPRIATIONS
		Transfer to General Reserve	5.320	3.111	1.579
		Proposed Dividend	12.375	7.425	3.713
		Corporate Tax on Final Dividend	2.008	1.261	0.708
	BALANCE CARRIED TO THE B/S		109.138	75.636	56.322
	Earnings Per Share (Rs.)		1.04	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	17.53	14.43	8.65
Net Profit Margin (PBT/Sales)	(%)	29.83	26.07	14.75
Return on Total Assets (PBT/Total Assets}	(%)	34.74	19.84	10.85
Return on Investment (ROI) (PBT/Networth)		0.60	0.53	0.34
Debt Equity Ratio (Total Liability/Networth)		0.70	1.60	2.10
Current Ratio (Current Asset/Current Liability)		1.54	1.10	1.13

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
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	Yes
17]	Major suppliers	No
18]	Major customers	No
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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U02922KA1987PLC008415
Name of the company	AUTO CNC MACHINING LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.282, IV Main Road, Peenya, Industrial Area, IV Phase, Bangalore - 560058, Karnataka, India E-mail: havaldar@autocnc.co.in
This form is for	Modification of charge
Charge identification number of the modified	80051694
Type of charge	Immovable Property Book Debts Movable Property Stocks, Machineries, etc
Particular of charge holder	State Bank of India, Specialised MID Corporation Branch, No. 97, Railway Parallel Road, Kumarapark West, Bangalore – 560 020, Karnataka, India e-mail: h.jsurya@gmail.com
Nature of description of the instrument creating or modifying the charge	letter from state bank of India
Date of instrument Creating the charge	20.12.2001
Amount secured by the charge	Rs. 19.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As applicable Terms of Repayment Repayable on demand Margin As applicable Extent and Operation of the charge Charge extends by way of first charge on all the assets throughout the period of sanctioned limits
Short particulars of the property charged	Hypothecation of the whole of the present and future stocks of raw materials, semi finished goods, finished goods, receivables, book debts, machineries, etc belonging to the company EM on co's immovable properties situated at No. 282, 4th Main, 4th Phase, Peenya Industrial Area, Bangalore
Date of latest modification prior to the present modification	18.12.2010
Particulars of the present modification	Total limits reduced from Rs. 35.500 Millions to Rs. 19.000 Millions. EM on co's immovable properties situated at No. 282, 4th Main, 4th Phase, Peenya Industrial Area, Bangalore Banking Accounts transferred from State Bank of India, Peenya Industrial Estate Branch to Specialised Midcorporate Branch. All other terms, conditions and existing securities to continue

OPERATIONS

The Company has reported better performance for the year. The operations during the year under review was satisfactory with the Gross Income at Rs. 296.300 millions as against Rs. 206.900 millions of the previous year, thereby registering an increase of 43.13% and operating net profit before tax of Rs. 80.720 millions as against Rs.48.933 millions of the previous year, registering an increase of 65%,

At the beginning of the year, the Company had projected a higher growth in turnover especially in Sales due to increase in demand for supply of components from some of the Customers like M/s. G.E.B Limited, G.E. Medical Systems Limited and M/s. Bosch Limited, and this has been substantially met by intensified efforts. The Export Turnover stood at 68.178 millions as against 28.937 millions in the previous year.

CONTINGENT LIABILITIES (As on 31.03.2011)

(Rs. in millions)

a) Counter Guarantees to Bank 0.421

FIXED ASSETS

· Plant and Machinery

· Instruments

· Electrical Equipments

· Factory and office Equipments

· Computers

· Furniture and Fixtures

· Land

· Building

· Motor vehicles

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 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.51.62
UK Pound	1	Rs.83.57
Euro	1	Rs.67.17

INFORMATION DETAILS

Report Prepared by :

NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.