MIRA INFORM REPORT

Report Date :

04.04.2013

IDENTIFICATION DETAILS

Name :	HI TECH ARAI PRIVATE LIMITED (w.e.f. 14.12.2010)
Formerly Known As :	HITECH ANCILLARIES PRIVATE LIMITED HI-TECH ANCILLARIES LIMITED (w.e.f. 01.04.1990) HI TECH ARAI LIMITED (w.e.f. 23.12.1993)
Registered Office :	G2, No.12, 12^th Cross Street, Dhandeeswara Nagar, Velachery, Chennai – 600 042, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.02.1985
Com. Reg. No.:	18-011572
Capital Investment / Paid-up Capital :	Rs.56.000 Millions
CIN No.: [Company Identification No.]	U29130TN1985PTC011572
TAN No.: [Tax Deduction & Collection Account No.]	MRIH00107C
PAN No.: [Permanent Account No.]	AAACH3917N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Oil Seals and Automobile 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 5400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having good track record. Financial position appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for 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.

LOCATIONS

Registered Office :	G2, No.12, 12^th Cross Street, Dhandeeswara Nagar, Velachery, Chennai – 600 042, Tamilnadu, India
Tel. No.:	91-452-2536116
Fax No.:	91-452-2539111
E-Mail :	jc@hitecharai.com hta@hitecharai.com
Website :
Factory :	No.66,67,68, SIDCO Industrial Estate, Kappalur, Madurai – 625 008, Tamilnadu, India
Tel. No.:	91-452-2487940, 2486886

DIRECTORS

As on: 28.09.2012

Name :	Mr. Ramaiya Lakshminarayanan
Designation :	Chairman
Address :	S. No.180/ 2B 1A, 2B 1B, Lake View Area, Madurai – Melur Road, Uthangudi, Madurai – 625 107, Tamilnadu, India
Date of Birth/Age :	15.05.1935
Qualification :	B.Sc (Chemistry) B.Sc (Tech) in Chemical Engineering Fellow of the Royal Society of Chemistry, London Fellow of the Plastics and Rubber Institute, London Fellow of the Textile Institute, UK
Experience :	54 Years
PAN No.:	AARPL6848G
Date of Appointment :	21.05.1986
DIN No.:	00501071
Name :	Mrs. Miyo Mori
Designation :	Vice-Chairman
Address :	4-6-5, Higashi, Shibuya-Ku, Tokyo, Japan
Date of Birth/Age :	05.01.1939
Date of Appointment :	30.10.1998
DIN No.:	00646810
Name :	Mrs. Malaikudi Srinivasan Rajee
Designation :	Director
Address :	S. No.180/ 2B 1A, 2B 1B, Lake View Area, Madurai – Melur Road, Uthangudi, Madurai – 625 107, Tamilnadu, India
Date of Birth/Age :	15.01.1941
PAN No.:	ACYPR7845Q
Date of Appointment :	18.02.1985
DIN No.:	00501260
Name :	Mr. Bendoor Tarachand Bangera
Designation :	Managing Director
Address :	Plot No.48, Vishwanathapuram Main Road, Madurai – 625 014, Tamilnadu, India
Date of Birth/Age :	17.03.1942
Qualification :	B.E., M.B.A. (IIM - Ahmedabad)
Experience :	46 Years
PAN No.	AANPB8111C
Date of Appointment :	07.02.1990
DIN No.:	00432492
Name :	Mr. Goichi Mori
Designation :	Director
Address :	2-1-1-4006, Tsukuda, Chuo-Ku, Tokyo, Japan
Date of Birth/Age :	18.05.1965
Date of Appointment :	30.10.1998
DIN No.:	00646904
Name :	Mr. Motai Azumi
Designation :	Director
Address :	56-12, Torigaoka Totsuka-ku, Yokohama City Kanagawa, Japan
Date of Birth/Age :	26.09.1958
Date of Appointment :	12.05.2010
DIN No.:	03074987
Name :	Mr. Hiroshi Makigawa
Designation :	Alternate Director
Address :	25, Arunachalam Road, Kotturpuram, Chennai – 600 085, Tamilnadu, India
Date of Birth/Age :	12.12.1960
Date of Appointment :	27.02.2010
DIN No.:	03006813
Name :	Mr. Hiroshi Tamura
Designation :	Director
Address :	390, Brighttown Saidenji, 230-1, Saidenji-CHO, Minami-Ku Hamamatsu, Shizuoka Perfecture, Tokya, Japan
Date of Birth/Age :	04.01.1953
Date of Appointment :	07.11.2011
DIN No.:	05104145
Name :	Mr. Shinji Nagakura
Designation :	Director
Address :	2-11-15-1104, Otowa Bunkyo-ku Tokyo
Date of Birth/Age :	07.11.1974
Date of Appointment :	23.12.2010
DIN No.:	03319178
Name :	Mr. Takayuki Ikeda
Designation :	Director
Address :	1068-2-812, Oowadashinden, Yachiyo City Chiba Prefecture
Date of Birth/Age :	25.01.1952
Date of Appointment :	23.12.2010
DIN No.:	03319179

KEY EXECUTIVES

Name :	Mr. S Kumararajan
Designation :	Secretary
Address :	Plot No.651, Arignar Anna Nagar, Madurai – 625020, Tamilnadu, India
Date of Birth/Age :	03.06.1949
PAN NO.:	AASPK2596H
Date of Appointment :	19.01.2011

MAJOR SHAREHOLDERS

As on: 28.09.2012

Names of Shareholders	No. of Shares
A) FOREIGN EQUITY
(Non Resident Corporates)
M/S. Singapore ARS Pte. Limited	4695075
M/s. Mitsubishi Corporation	800000
B) DIRECTORS AND RELATIVES
(Resident individuals)_
Mrs. M.S. Rajee	32000
Mr. R Lakshm1 Narayanan	31900
Ms. L. Sujanitha	26000
Mrs. Veena Bangera	6000
Mr. B. T. Bangera	6000
C) OTHERS
(Resident Individuals)
Mr. R Kalyanasundaram (Deceased)	25
Mrs. Bina A. Pai	1000
Mr. Sameer P.Rao	2000
Total	5600000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	98.13
Directors or relatives of Directors	1.81
Other	0.06
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Oil Seals and Automobile Components.

Products :

Products	ITC Code
Oil Seals	40169330
Reed Valve Assembly	84792090

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• ABN Amro Bank N.V., No.16, Kumaran Road, Tirupur, Tirupur – 641 601, Tamilnadu, India
• HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai – 400 013, Maharashtra, India
• IDBI Bank Limited, 1/ 1, Karthik Raja Complex, Karthik Raja Complex, K.K. Nagar, Madurai – 625 020, Tamilnadu, India
• The Bank of Nova Scotia, Classic Towers, 1547, Trichy Road, Coimbatore – 641 018, Tamilnadu, India
• The Bank of Tokyo-Mitsubishi UFI Limited, Seshachalam Centre, 6th and 7th Floor, 636/1, Anna Salai, Nandanam, Chennai – 600035, Tamil Nadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
SHORT TERM BORROWING
Term loans from banks	209.229	161.247
Working capital loans from banks	35.463	25.909
Loans repayable on demand from banks	120.000	150.000
Total	364.692	337.156

Banking Relations :	--
Auditors :
Name :	Manian and Rao Chartered Accountants
Address :	29/11, Goods Shed Street, Madurai – 625001, Tamilnadu, India
PAN No.:	AAHFM0757B
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	Arai Americas Inc. , United States Nihon Clin Company Limited, China PT Arai Rubber Seals, Indonesia Thai Arai Company Limited, Thailand Vietnam Arai Company Limited, Vietnam Wuhan Arai Oilseals Manufacturing Company Limited, Japan
Joint venture:	Arai Seisakusho Company Limited, Japan Mit Subi Sh Corporation, Japan
Associates :	Meccanotecnica - HTA India Private Limited CIN No.: U25206TN2009PTC073162

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
8750000	Equity Shares	Rs.10/- each	Rs.87.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5600000	Equity Shares	Rs.10/- each	Rs.56.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		56.000	56.000	56.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1300.474	1175.265	1001.826
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1356.474	1231.265	1057.826
LOAN FUNDS
1] Secured Loans		364.692	337.156	159.282
2] Unsecured Loans		6.388	21.450	31.149
TOTAL BORROWING		371.080	358.606	190.431
DEFERRED TAX LIABILITIES		134.242	149.476	136.786
TOTAL		1861.796	1739.347	1385.043
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1073.550	996.300	849.415
Capital work-in-progress		12.422	12.173	5.465
INVESTMENT		22.065	12.865	0.105
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	823.912	662.125	416.434
	Sundry Debtors	716.915	597.323	437.023
	Cash & Bank Balances	12.461	26.505	14.458
	Other Current Assets	19.134	76.124	0.000
	Loans & Advances	119.652	121.216	135.896
Total Current Assets		1692.074	1483.293	1003.811
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	628.369	541.808	200.257
	Other Current Liabilities	293.044	196.245	252.113
	Provisions	16.902	27.231	21.383
Total Current Liabilities		938.315	765.284	473.753
Net Current Assets		753.759	718.009	530.058
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1861.796	1739.347	1385.043

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3509.000	2869.800	2092.931
		Other Income	NA	NA	13.058
		TOTAL (A)	NA	NA	2105.989
Less	EXPENSES
		Material Consumed			778.619
		Employee Costs			144.253
		Manufacturing Expenses			341.765
		Administrative Expenses	NA	NA	82.520
		Selling Expenses			242.670
		Prior Year Adjustments			90.635
		Increase/Decrease in Stocks			5.378
		TOTAL (B)	NA	NA	1685.840
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		465.900	449.200	420.149
Less	FINANCIAL EXPENSES (D)		21.500	15.100	15.925
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		444.400	434.100	404.224
Less/ Add	DEPRECIATION/ AMORTISATION (F)		204.900	173.200	154.101
	PROFIT BEFORE TAX (E-F) (G)		239.500	260.900	250.123
Less	TAX (H)		96.100	77.600	87.624
	PROFIT AFTER TAX (G-H) (I)		143.400	183.300	162.499
	Transfer from General reserve		0.000	103.750	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		307.145	47.241	29.585
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	17.290	120.000
		Contribution to Community Welfare a/c	0.000	5.002	3.620
		Residual Dividend	0.000	(7.000)	0.000
		Reversal of Excess Dividend Tax Provision	0.000	(1.163)	0.000
		Equity Dividend (Proposed)	0.000	11.200	18.200
		Corporate Dividend Tax	0.000	1.817	3.023
	BALANCE CARRIED TO THE B/S		450.545	307.145	47.241
	Earnings Per Share (Rs.)		25.61	32.73	29.02

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	7.72
Net Profit Margin (PBT/Sales)	(%)	6.83	9.09	11.95
Return on Total Assets (PBT/Total Assets}	(%)	8.66	10.52	13.50
Return on Investment (ROI) (PBT/Networth)		0.18	0.21	0.24
Debt Equity Ratio (Total Debt /Networth)		0.27	0.29	0.18
Current Ratio (Current Asset/Current Liability)		1.80	1.94	2.12

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

OPERATIONS:

Sales has increased to Rs.3509 million from Rs.2870 million last year registering a growth of 22% the gross profit has increased from Rs.449 million to Rs. 466 million an increase of 4%. The profit after tax has decreased from Rs.260 million to Rs. 239 million showing a decline of 9%. The US dollar exchange rate has gone up from Rs.44.60 in April 2011 to Rs.48.98 in September 2011 and closed around Rs. 50.88 in March 2012, YEN was around Rs.53.34 in April 2011 to 63.90 in September 2011 and closed around Rs.62.01 in March 2012. Foreign exchange fluctuation losses (Rs.58 million against Rs. 10 million) in the previous year and serve power cut in the State of Tamil Nadu forcing the company to use diesel generating sets (Rs.153 million compared to Rs. 124 million last year) increasing the cost had affected the profitability. The company had initiated various cost cutting measures and thus minimised the impact of all these adverse factors.

UNSECURED LOAN:

(Rs. In Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWING
Deferred payment liabilities	6.388	21.450
Total	6.388	21.450

BANKERS CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U29130TN1985PTC011572
Name of the company	HI TECH ARAI Private Limited
Address of the registered office or of the principal place of business in India of the company	G2, No.12, 12th Cross Street, Dhandeeswara Nagar, Velachery, Chennai – 600042, Tamil Nadu, India jc@hitecharai.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90297987
Type of charge	Book debts Floating charge
Particular of charge holder	The Bank of Tokyo-Mitsubishi UFI Limited, Seshachalam Centre, 6th and 7th Floor, 636/1, Anna Salai, Nandanam, Chennai – 600035, Tamil Nadu, India k_nambirajan@in.mufg.jp
Nature of instrument creating charge	Hypothecation Agreement
Date of instrument Creating the charge	07.02.2012
Amount secured by the charge	Rs.575.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1. WC (OD)- Base Rate +4.00%(presently 7.40%) 2. STL (Combined limit with 1) < 1yr - Market Driven Rates 3. Export Credit - < 180 days - as per RBI norms 4. Buyers credit - USD 7.5mio BTMULIBOR+1%pa Terms of Repayment Working Capital Requirements Margin 25% against Stocks and 25% against Book-Debts upto 120 days Extent and Operation of the charge 1. All stocks of Automobile Components, Spare parts and stores of the borrower and all other Current Assets, both present and future. 2. Book-Debts, receivables, out-standings, money receivables, claims, bills etc.. both present and future Others As per Facilities Rearrangement Agreement
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Stocks at Units and Stores situated at Kappalur, Pudur and Uranganpatti Sheds at industrial Estates and at Trirchy unit belonging to the borrower. Book-Debts, receivables, out-standings, money receivables, claims, bills etc.. both present and future
Particulars of the present modification	The existing facilities increased / re-arranged as under: 1. Short term loan / Overdraft / Export credit comprising Pre-shipment (packing) credit and Post-Shipment credit - Increased from Rs 100.000 Millions to Rs 200.000 Millions. 2. Buyer's credit - Increased from USD 5,000,000/- TO USD 7,500,000/- (or equivalent JP Yen) - equivalent rupee from Rs 250.000 Millions to Rs 375.000 Millions.

FIXED ASSETS:

• Land
• Buildings
• Plant and Machinery
• Own Building
• Improvements to Leasehold
• Temporary Structures
• Vehicles
• Furniture and Fixtures

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.54.39
UK Pound	1	Rs.82.05
Euro	1	Rs.69.59

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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	-

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.