MIRA INFORM REPORT

Report Date :

25.10.2012

IDENTIFICATION DETAILS

Name :	GKN DRIVELINE (INDIA) LIMITED
Formerly Known As :	GKN INVEL TRANSMISSIONS LIMITED
Registered Office :	Plot No. 270, Sector – 24, Faridabad - 121005, Haryana
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	25.07.1985
Com. Reg. No.:	05-034079
Capital Investment / Paid-up Capital :	Rs.127.731 Millions
CIN No.: [Company Identification No.]	U74999HR1985PLC034079
TAN No.: [Tax Deduction & Collection Account No.]	RKTG03318A / RKTG02547G
PAN No.: [Permanent Account No.]	AAACG4276B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Auto Parts Components.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (60)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 12528000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	GKN DRIVELINE is the largest business within the global engineering group. It is well established company having good track record. These appears drastic fall in the profitability. However, fundamental seems healthy and strong. 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 business dealing at usual trade terms and condition.

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/ Factory 1 :	Plot No. 270, Sector – 24, Faridabad - 121005, Haryana, India
Tel. No.:	91-129-4091100/ 2232531
Fax No.:	91-129-2230580
E-Mail :	ashish.kumar@gkndriveline.com
Website :	www.gkndriveline.com
Factory 2 :	Plot No. B-13, SIPCOT Industrial Park, Vaipur A and B, Oragadam, Sriperumbadur, Kancheepuram – 602105, Tamilnadu, India
Tel. No.:	91-44-27142380
Fax No.:	91-44-27142300
E-Mail :	info@gkndriveline.com
Factory 3 :	34 and 35, Industrial Area, Dharuhera – 122106, Haryana, India
Tel. No.:	91-1274-398000/ 242579
Fax No.:	91-1274-242581

DIRECTORS

As on 19.06.2012

Name :

Mr. Dharam Vir Kapur

Designation :

Director

Address :

405, Aradhana Apartment, Sector XIII, R.K Puram, New Delhi-110066, India

Date of Birth/Age :

09.09.1928

Date of Appointment :

28.06.2004

DIN No.:

00001982

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	L40103DL2004PLC203950	HONDA SIEL POWER PRODUCTS LIMITED	Director	31/03/1988	31/03/1988	-	Active	NO
2	U27109DL1901PLC022060	HONDA SIEL POWER PRODUCTS LTD	Director	31/03/1988	31/03/1988	-	Not Available for e Filing	NO
3	L29220MH1960PLC011773	ZENITH BIRLA (INDIA) LIMITED	Director	23/12/1988	23/12/1988	-	Active	NO
4	L24239MH1939PLC002893	TATA CHEMICALS LIMITED	Director	29/09/1989	29/09/1989	27/07/2007	Active	NO
5	U74899DL1995PLC070604	DRIVETECH ACCESSORIES LIMITED	Director	07/07/1995	07/07/1995	-	Active	NO
6	U40100HR1988PLC032877	EASTERN INDIA POWERTECH LIMITED	Director	17/07/1995	17/07/1995	31/03/2008	Active	NO
7	L17110MH1973PLC019786	RELIANCE INDUSTRIES LIMITED	Director	28/03/2001	28/03/2001	-	Active	NO
8	U74999HR1985PLC034079	GKN DRIVELINE (INDIA) LIMITED	Director	28/06/2004	28/06/2004	-	Active	NO
9	L70101HR1963PLC002484	DLF LIMITED	Director	29/09/2006	21/04/2006	-	Active	NO
10	U40101DL2010PTC207559	SUNON ENERGY PRIVATE LIMITED	Director	26/08/2010	26/08/2010	-	Active	NO
11	U74999DL2011PTC219906	GSD AUTOMATION PRIVATE LIMITED	Director	27/05/2011	27/05/2011	-	Active	NO

Name :

Mr. Mansoor Anwar

Designation :

Director

Address :

29, Leonie Hill, #03-01, Horizon Tower (West Block), Singapore – 239 228

Date of Birth/Age :

22.04.1957

Date of Appointment :

01.09.2002

DIN No.:

00467520

Name :

Mr. Dara Phirozeshaw Mehta

Designation :

Director

Address :

10, Southlands, 177 Colaba Road, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

13.07.1933

Date of Appointment :

28.06.2005

DIN No.:

00041164

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	L23109GA1967PLC000076	GOA CARBON LIMITED	Director	22/12/2006	25/09/1978	-	Active	NO
2	L24294MH1958PLC011052	FOSECO INDIA LIMITED	Director	08/11/1994	08/11/1994	22/04/2009	Active	NO
3	U74999MH1993PTC071079	EMERSON NETWORK POWER (INDIA) PRIVATE LIMITED	Director	16/03/1995	16/03/1995	-	Active	NO
4	U72300MH1996PTC103206	BLOOMBERG DATA SERVICES (INDIA) PRIVATE LIMITED	Director	10/10/1996	10/10/1996	-	Active	NO
5	U21012DL1999PTC102815	GROLIER INTERNATIONAL PRIVATE LIMITED	Director	15/12/1999	15/12/1999	-	Active	NO
6	U29192PN1993PLC071223	EMERSON CLIMATE TECHNOLOGIES (INDIA) LIMITED	Director	26/02/2002	26/02/2002	-	Active	NO
7	U74999KA1993PLC046003	DME (INDIA) PRIVATE LIMITED	Alternate director	17/11/2003	17/11/2003	-	Active	NO
8	U01120MH1989PLC054377	GLOBAL DOLPHIN DRILLING COMPANY LIMITED	Alternate director	24/09/2004	24/09/2004	-	Active	NO
9	U74999HR1985PLC034079	GKN DRIVELINE (INDIA) LIMITED	Director	28/06/2005	28/06/2005	-	Active	NO
10	U92120MH2005PTC156063	BLOOMBERG TELEVISION PRODUCTION SERVICES INDIA PRIVATE LIMITED	Director	15/09/2005	15/09/2005	16/03/2007	Active	NO
11	L34102UP1988PLC010141	INSILCO LIMITED	Director	31/12/2005	31/12/2005	-	Active	NO
12	U74899AP1993PTC055249	POLISETTY SOMASUNDARAM TOBACCO PRODUCTS (INDIA) PRIVATE LIMITED	Alternate director	07/05/2007	07/05/2007	03/04/2008	Active	NO
13	U11202HR2007FTC041948	HOWDEN AIR AND GAS INDIA PRIVATE LIMITED	Director	06/06/2007	06/06/2007	18/06/2010	Active	NO
14	U93000AP2007FTC055977	PROJECT EXPERTS INDIA PRIVATE LIMITED	Director	17/10/2007	17/10/2007	01/08/2009	Active	NO
15	U17114MH2000PLC126018	REID AND TAYLOR (INDIA) LIMITED	Additional director	14/12/2009	14/12/2009	-	Active	NO

Name :

Mr. Marc Louis Gustave Vuarchex

Designation :

Director

Address :

267, Jalan Kampong Chantek, Singapour -587941, Singapore

Date of Birth/Age :

12.03.1952

Date of Appointment :

09.10.1995

DIN No.:

0348779

KEY EXECUTIVES

Name :	Mr. Rajeev Dogra
Designation :	Manager
Address :	Flat No. 31, Ridge View Apartments, Sector – 21/C, Part – 3, Faridabad, Haryana – 121 001, India
Date of Birth/Age :	10.04.1966
Date of Appointment :	06.05.2012
PAN No.:	AADPD2237K
Name :	Mr. Ashish Kumar Pandey
Designation :	Secretary
Address :	H. No. A – 68, Ashoka Enclave II, Sector 37, Faridabad, Haryana – 122 003, India
Date of Birth/Age :	13.07.1975
Date of Appointment :	22.06.2010
PAN No.:	AKXPP2127N

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.06.2012

SHAREHOLDERS DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Nationalized or other banks	0.01
Mutual Funds	0.01
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	97.13
Bodies corporate	0.05
Other top fifty shareholders	0.49
Others	2.31
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Auto Parts Components.

Products :

ITC Code	Product Descriptions
870850.00	Drive Axles Including Constant Velocity Joints

· Drive Module For Motor Assisted

· Electro-Magnetic Control Device

· Electronic Lock-Up Differential

· Free Running Rear Differential

· High Performance Helical Lsd

· Highly Adaptable Torque Sensing Multi-Plate Lsd

· One-Piece Aluminium Rear Propshaft

· One-Piece Front Propshaft

· Sealing Systems For Constant Velocity Joints

· Three-Piece Propshaft

· Torque-Sensing Super Lsd

· Tripod Plunging Joint Aar

· Tripod Plunging Joint Gi

· Tubular Shaft

· Two-Piece Propshaft

· Visco Lok Lsd Speed-Sensing

· Viscous Coupling

· Ball Plunging Constant Velocity Joint

· Ball Plunging Constant Velocity Joints

· Fixed Constant Velocity Joints

· Tripod Plunging Constant Velocity Joints

· Ball Plunging Joint Do

· Ball Plunging Joint Sc

· Ball Plunging Joint Vl

· Ball Plunging Joint Vl Disc

· Ball Plunging Joint Vl Monobloc

· Fixed Ball Joint Ac

· Fixed Ball Joint Uf

· Final Drive Unit (Geared Power Transmission Products)

· Power Transfer Unit

· Electronic Torque Manager

· Electronic Torque Vectoring

· Sealing Systems

PRODUCTION STATUS AS ON 31.12.2011

Particulars	Unit	Licensed Capacity	Installed Capacity*
Drive Axle Assembly and Components including C. V. Joints	Sets	NA	2322000
Precision Forgings	Sets	NA	3600000

*Installed capacity is computed on a triple shift basis using a six day week and certified by the management and being a technical matter has been relied upon by the auditors.

Particulars	Units	Actual Production
Drive Axle Assembly	Sets	1920296
Others	Nos	272277

GENERAL INFORMATION

No. of Employees :

700 (Approximately)

Bankers :

· ICICI Bank

· IDBI Bank

· HDFC Bank Limited

· Canara Bank

· Standard Chartered Bank

· The Hongkong and Shanghai Banking Corporation Limited

· Citibank N.A.

Facilities :

Secured Loan	As on 31.12.2011 (Rs. in Millions)	As on 31.12.2010 (Rs. in Millions)
Working Capital Demand Loan - From a Bank	170.000	0.000
Total	170.000	0.000

NOTE

The above loan is guaranteed by GKN (United Kingdom) Pic a fellow subsidiary.

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Building 8, Tower B, 8^th Floor, DLF Cyber City, Gurgaon-122022, Haryana, India
PAN No.:	AAFFP3698A
Group :	GKN Driveline (India) Limited is a part of group of GKN PLC and its affiliates
Ultimate parent Company :	GKN Plc, UK
Holding Company:	GKN Driveline International GmbH, Germany
Subsidiaries :	Drivetech Accessories Limited [CIN No.: U74899DL1995PLC070604]
Fellow Subsidiaries :	· GKN Driveline Japan Limited, Japan · GKN Driveline Deutschland GmbH, Germany · GKN Do Brasil Ltda, Biasil · GKN Driveline Espana SA, Spain · GKN Driveline Vigo,Spain · GKN Driveline Firenze SpA, Italy · GKN Driveline Sanford, USA · GKN Driveline Zumaia SA, Spain · GKN Glanzer Spicer, France · GKN Driveline Malaysia Sdn Bhd, Malaysia · GKN Francaise D'Achts, France · GKN Driveline Korea Limited, South Korea · GKN Driveline (Thailand) Limited, Thailand · GKN Automotive Limited, U.K · GKN Arya Durex Limited, Spain · GKN Service International GmbIT, Germany · GKN Group Service Limited, UK · GKN Sinter Metals Private Limited, Pune · GKN Driveline Birmingham Limited, U.K · GKN Driveline Walsall Limited · Unidrive Pty Limited, Australia · GKN Driveline Singapore Pte Limited, Singapore · GKN Driveline Brunico, SpA, Italy · GKN Driveline Slovenija, d.o.o, Slovenia · GKN Driveline SA, France · GKN Walterscheid Gmbh, Germany · GKN Automotive AG, Germany · GKN Driveline North America, Inc, USA · GKN Driveline Polska Sp.zo.o Poland · GKN Hardy Spicer Limited.UK · GKN Driveline Legazpi SA, Spain · GKN Unior-Atras d.o.o · GKN Freight Sevices Limited, UK · GKN Driveline Seoul, Korea · GKN Driveline Trier GmbH · GKN Driveline Lazipur SL, Spain · GKN Driveline JTEKT Manufacturing Limited [Formerly GKN Driveline (Toyoda) Manufacturing Limited ] · GKN Holding PLC, UK · AP Newall and Company · GKN (United Kingdom) Pic. UK
Joint Venture of GKN Plc, UK, The ultimate parent company :	· JILIN GKN Norinco Driveshafts · Shanghai GKN Driveshaft Company Limited · Transejes Transmisiones Homocienticas de Columbia · Taiway Limited · Univel Transmission (Pte) Limited · GKN JTEKT Limited, Japan

CAPITAL STRUCTURE

As on 31.12.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs. 150.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
12773061	Equity Shares	Rs. 10/- each	Rs. 127.731 millions

NOTE

Of the above 12393808 share are held by GKN Driveline International GmbH, Germany the holding company.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		127.731	127.731	127.731
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3004.345	2861.841	2499.326
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3132.076	2989.572	2627.057
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		170.000	0.000	0.000
TOTAL BORROWING		170.000	0.000	0.000
DEFERRED TAX LIABILITIES		121.441	84.295	83.691
TOTAL		3423.517	3073.867	2710.748
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3100.745	1960.331	1951.270
Capital work-in-progress		382.181	765.453	56.055
INVESTMENT		0.502	0.502	0.502
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	859.465	715.057	515.513
	Sundry Debtors	542.201	541.719	412.278
	Cash & Bank Balances	35.671	345.394	311.568
	Other Current Assets	0.095	0.304	5.823
	Loans & Advances	330.573	256.012	420.454
Total Current Assets		1768.005	1858.486	1665.636
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1653.062	1372.926	852.630
	Other Current Liabilities	112.456	92.016	56.952
	Provisions	62.398	45.963	53.133
Total Current Liabilities		1827.916	1510.905	962.715
Net Current Assets		(59.911)	347.581	702.921
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3423.517	3073.867	2710.748

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	6376.296	5785.288	4368.047
		Other Income	57.200	67.310	45.013
		TOTAL (A)	6433.496	5852.598	4413.060
Less	EXPENSES
		Manufacturing and Other Expenses	5859.077	5080.406	3717.410
		Increase/ Decrease in Finished Goods	(34.215)	(75.745)	31.939
		TOTAL (B)	5824.858	5004.661	3749.349
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		608.638	847.937	663.711
Less	FINANCIAL EXPENSES (D)		22.297	0.317	0.342
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		586.341	847.620	663.369
Less/ Add	DEPRECIATION/ AMORTISATION (F)		360.909	300.499	263.894
	PROFIT BEFORE TAX (E-F) (G)		225.432	547.121	399.475
Less	TAX (H)		82.928	184.606	123.090
	PROFIT AFTER TAX (G-H) (I)		142.504	362.515	276.385
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2497.516	2135.001	1858.616
	BALANCE CARRIED TO THE B/S		2640.020	2497.516	2135.001
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	89.364	163.581	161.883
	TOTAL EARNINGS		89.364	163.581	161.883
	IMPORTS
		Raw Material, Components and spares	1571.724	1301.372	811.482
		Capital Goods	573.097	169.419	222.618
	TOTAL IMPORTS		2144.821	1470.791	1034.100
	Earnings Per Share (Rs.)		11.18	28.38	21.64

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	2.21	6.19	6.26
Net Profit Margin (PBT/Sales)	(%)	3.53	9.46	9.14
Return on Total Assets (PBT/Total Assets}	(%)	4.63	14.32	11.04
Return on Investment (ROI) (PBT/Networth)		0.07	0.18	0.15
Debt Equity Ratio (Total Liability/Networth)		0.63	0.50	0.36
Current Ratio (Current Asset/Current Liability)		0.96	1.23	1.73

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	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FINANCIAL PERFORMANCE

The Company’s top-line sales continued to grow during the year inspite of slowdown in second half of 2011.

However, the profit margin was adversely impacted by increase in raw material cost, currency devaluation and depreciation.

OPERATIONS

Indian auto market grew at rate of 2.19% during the year 2011-12. The market sentiment was particularly weak during second half of the year. Slow growth was mainly due to higher interest rates for car loans, rising fuel expenses and workmen strike in Maruti.

The company posted growth rate of 10.52% in terms of value and 6.68% in terms of number of vehicle sets produced. The company has supplied Driveshafts for 1.91 Million cars during the year as against 1.79 Million cars in the same period of previous year.

During the year, the company commenced production at its in-house forging plant located within Oragadam Plant of the Company.

OUTLOOK

The auto industry showed steady signs of revival in the first quarter of 2012. With interest rates expected to come down during 2012, consumer sentiments seem to be improving in the domestic market.

Indian economy is poised to achieve growth rate of around 7% during FY 2012-13 and car sales are expected to grow 11-13 percent in the same period, therefore, the performance of auto industry during the year 2012-13 is likely to be much better as compared to the last fiscal.

The company has started implementation of another Greenfield project in Pune, Maharashtra. The first phase project cost is Rs. 1300.000 Million. which will increase the capacity by 300,000 vehicle sets.

CONTINGENT LIABILITY

i) Outstanding commitments under letter of credit established by the company amounting to Rs. 0.700 million (Previous year Rs. 1.000 million).

ii) In April 1999, the Company had received a demand of Rs 9.875 millions (Previous Year Rs 9.875 millions) from Haryana Urban Development Authority (HUDA) towards extension fees for non-completion of building within time at its Dharuhera Plant. The Company's appeal on the above subject is currently pending before administrator HUDA. During the previous year personal hearings were held, in which HUDA administrator had directed the Estate Officer HUDA to file a reply.

iii) Demand from Income Tax Authorities Rs. 183.864 millions (Previous year Rs. 66.228 millions).

iv) Demand raised by Central Excise department for Excise duty Rs.21.441 millions (Previous year Rs. 24.302 millions) and Service tax Rs. 76.942 millions (Previous year Rs. 66.472 millions).

v) Demand raised by Employee State Insurance Department under appeal Rs. 244,438 (Previous year Rs. 0.244 millions).

vi) Additionally the Company is also involved in lawsuits and claims amounting to Rs. 0.550 million (Previous year Rs. 0.050 million) pending at various authorities, which arise in the ordinary course of the business.

Management believes that it has a strong defense against items mentioned above and an adverse outcome is not probable. The estimated timing of cash outflow arc dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Installation

· Mechanical and Testing Equipments

· Furniture and Fixtures

· Office Equipments

· Computers

· Vehicles

· Development Lab Equipments

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.53.59
UK Pound	1	Rs.85.81
Euro	1	Rs.69.91

INFORMATION DETAILS

Report Prepared by :

NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		60

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.