MIRA INFORM REPORT

Report Date :

06.04.2013

IDENTIFICATION DETAILS

Name :	ADITYA AUTO PRODUCTS AND ENGINEERING (INDIA) PRIVATE LIMITED
Registered Office :	Plot No.13E, KIADB Industrial Area, Doddaballapur, Bangalore-561203, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.07.1996
Com. Reg. No.:	08-020766
Capital Investment / Paid-up Capital :	Rs.49.620 Millions
CIN No.: [Company Identification No.]	U35204KA1996PTC020766
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Automobile Window Regulators and Drum Cable.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 2040000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears some dip in the profitability of the company during current year. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered 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/ Door and Access Division/ Contract Manufacturing Division :	Plot No.13E, KIADB Industrial Area, Doddaballapur, Bangalore-561203, Karnataka, India
Tel. No.:	91-80-22637000
Fax No.:	91-80-27625040
E-Mail :	cjayram@adityaauto.com mktg@adityaauto.com
Website :	www.adityaauto.com
Wiring Harness and Integrated Products division :	179, Bommasandra Industrial Area, Hosur Road, Bangalore – 560099, Karnataka, India
Tel. No.:	91-80-27832955
Fax No.:	91-80-27831103
E-Mail :	mktg@adityaauto.com
Components Division and Tool Room :	23/24, 2^nd Phase Peenya Industrial Area, Bangalore-560058, Karnataka, India
Tel No.:	91-80-28397218
Fax No.:	91-80-28394849
Email :	dmsgowda@adityaauto.com

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Ramachandran Jayaraman
Designation :	Chairman
Address :	417, Faculty Quarters, Indian Institute of Management, Bannerghatta, Bangalore – 560076, Karnataka, India
Date of Birth/Age :	01.06.1957
Date of Appointment :	30.09.2008
DIN No.:	00004593
Name :	Mr. Jayaraman Chandrachudan
Designation :	Managing Director
Address :	727, 5th A Cross, Yelahanka New Town, Bangalore – 560064, Karnataka, India
Date of Birth/Age :	05.12.1949
Date of Appointment :	30.06.1998
DIN No.:	00296405
Name :	Mr. Namasivayam Reguraj
Designation :	Director
Address :	No.7, I Block, 145h cross R.T. Nagar, Bangalore-560032, Karnataka, India
Date of Birth/Age :	07.05.1940
Date of Appointment :	17.08.1998
DIN No.:	00279043
Name :	William Robert Byass
Designation :	Director
Address :	16, Myrnong Crescent, Toorak, Victoria – 3142, Australia
Date of Birth/Age :	28.10.1949
Date of Appointment :	30.09.2006
DIN No.:	00279207
Name :	Mr. Sriram Tadimalla
Designation :	Director
Address :	25/1, North Public Square Road, Basavangudi, Bangalore – 560004, Karnataka, India
Date of Birth/Age :	07.04.1948
Date of Appointment :	27.10.2004
DIN No.:	00318089
Name :	Gisbert Bluemel
Designation :	Director
Address :	Mozartstrasse 8, Offerburg-77654, Germany
Date of Birth/Age :	15.12.1941
Date of Appointment :	30.09.2006
DIN No.:	00318089
Name :	Mr. Narasimhan Chakravarthi Srinivasan
Designation :	Director
Address :	7C, Sukhi Apartments, 17, Rhenius Street, Richmond Town, Bangalore – 560025, Karnataka, India
Date of Birth/Age :	28.05.1945
Date of Appointment :	21.08.2004
DIN No.:	00471801

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 09.02.2013

Names of Allottees	No. of Shares
Ramachandran Jayaraman	50000
Priti Ramachandran	50000
Gisbert Bluemel	73630
William Robert Byass	50370
TOTAL	224000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	94.96
Other top fifty shareholders	5.04
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Automobile Window Regulators and Drum Cable.

GENERAL INFORMATION

Customers :

· Ashok Leyland

· Mahindra

· Force Motors

· Maruti Suzuki

· Piaggio

· Tata

· Hond

· Skoda Auto

No. of Employees :

Not Available

Bankers :

Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term loans from banks	275.375	47.750
Loans taken for vehicles	1.402	0.995
Loans repayable on demand	400.920	283.985
TOTAL	677.697	332.730

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	100/2, Richmond Road, Bangalore – 560025, Karnataka, India
Tel. No.:	91-80-66276000
Fax No.:	91-80-66276011
PAN No:	AACFD3771D
Other Related Party :	Pranav Eximp Private Limited [U51420KA2002PTC031383]

CAPITAL STRUCTURE

AFTER.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5426000	Equity Shares	Rs.10/- each	Rs.54.260 Millions

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5202000	Equity Shares	Rs.10/- each	Rs.52.020 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4962000	Equity Shares	Rs.10/- each	Rs.49.620 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		49.620	49.620	49.620
2] Share Application Money		23.760	0.000	0.000
3] Reserves & Surplus		437.355	387.595	324.464
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		510.735	437.215	374.084
LOAN FUNDS
1] Secured Loans		677.697	332.730	321.223
2] Unsecured Loans		4.594	4.594	54.474
TOTAL BORROWING		682.291	337.324	375.697
DEFERRED TAX LIABILITIES		43.085	36.855	25.612
TOTAL		1236.111	811.394	775.393
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		846.038	431.267	384.320
Capital work-in-progress		45.472	42.098	50.656
INVESTMENT		2.984	2.984	2.984
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	295.925	221.010	175.643
	Sundry Debtors	350.992	251.341	261.890
	Cash & Bank Balances	3.035	8.581	21.880
	Other Current Assets	8.261	9.172	0.000
	Loans & Advances	211.593	154.050	186.481
Total Current Assets		869.806	644.154	645.894
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	344.145	219.045	203.806
	Other Current Liabilities	158.446	56.429	4.904
	Provisions	25.598	33.635	99.751
Total Current Liabilities		528.189	309.109	308.461
Net Current Assets		341.617	335.045	337.433
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1236.111	811.394	775.393

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Domestic Sale	1459.613	886.252	743.382
		Export Sale	453.019	569.246	550.801
		Other Income	7.825	110.453	25.510
		TOTAL (A)	1920.457	1565.951	1319.693
Less	EXPENSES
		TOTAL (B)	1718.256	1414.076	1162.967
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		202.201	151.875	156.726
Less	FINANCIAL EXPENSES (D)		81.117	28.648	23.622
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		121.084	123.227	133.104
Less/ Add	DEPRECIATION/ AMORTISATION (F)		51.906	36.867	29.382
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		69.178	86.360	103.722
Less	TAX (H)		13.651	17.443	17.481
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		55.527	68.917	86.241
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		297.584	237.454	167.000
Less	APPROPRIATIONS
		Transfer to General Reserve	3.000	3.000	10.000
		Dividend (Inclusive Proposed Dividend)	4.961	4.962	4.962
		Tax on Dividend	0.804	0.824	0.824
	BALANCE CARRIED TO THE B/S		344.346	297.585	237.455
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	453.019	569.246	550.801
	IMPORTS
		Raw Materials, Components and Spare parts	NA	NA	264.270
		Capital Goods	NA	NA	43.292
	TOTAL IMPORTS		NA	NA	307.562
	Earnings / (Loss) Per Share (Rs.)		11.19	13.89	17.38

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.89	4.40	6.53
Net Profit Margin (PBT/Sales)	(%)	3.62	5.93	8.01
Return on Total Assets (PBT/Total Assets}	(%)	4.03	8.03	10.07
Return on Investment (ROI) (PBT/Networth)		0.14	0.20	0.28
Debt Equity Ratio (Total Debt/Networth)		1.34	0.77	1.00
Current Ratio (Current Asset/Current Liability)		1.65	2.08	2.09

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	Yes
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Loans and advances from related parties	4.594	4.594
TOTAL	4.594	4.594

FINANCIAL HIGHLIGHTS:

The Company has achieved overall revenue of Rs.1920.500 Millions as compared to Rs.1565.9000 Millions of Previous Year recording a growth of 23%. Earnings before interest, tax, depreciation and amortization (EBITDA) stood at Rs.202.200 Millions against Rs. 151.880 Millions in the previous year showing an increase of 33%. Profit before Tax (PBT) stood at Rs. 69.180 Millions against Rs. 86.360 million in the previous year; a reduction of 20% over the previous year.

HIGHLIGHTS OF BUSINESS OPERATIONS:

MILESTONE:

During the year ended 31^st March 2012 report , the Company acquired the entire Assets and all the ongoing business of the Tooling s and Components Divisions of M/s of NTTF Industries Private Limited, a renowned Company engineering firm . Land and Building along with the assets were acquired at Vellore, Tamil Nadu and assets and businesses from Bangalore, divisions of NTTF. Prudent evaluation was made by the Directors and the Team Aditya team in consultation with the experts to achieve this major Milestone. The acquisition was funded partly by internal accruals and major portion ly by Long Term Debts.

INDUSTRY OVERVIEW – DOMESTIC:

The Indian Automotive Industry witnessed a slowdown in demand in 2011-12, partly contributed by rising interest rates and fuel prices impacting consumer sentiment, reinforced by the sovereign debt crisis in the Eurozone. The automotive industry growth halved to 13.8% YoY in FY’12 compared to a 27.5% YoY growth in FY’11, with cumulative production for FY’12 being 20,366,432 units. While passenger vehicle segment grew at 4.6% during FY’12, overall commercial vehicle segment registered an expansion of 18.2% YoY.

In addition to the slowing growth, the margins of automotive component industry were also impacted due to a combination of multiple factors. Weaker INR against USD negated the potential benefit from softening commodity prices and weaker INR against JPY increased the cost of imports for ancillaries. Also, sluggish growth in supplies to domestic OEMs, coupled with higher overhead costs, led to decline in profitability margins.

INDUSTRY OVERVIEW – EXPORT:

The Company's exposure to the export automotive market is currently limited to sale of contract manufactured sub-assemblies and wiring harness assemblies. The Company's export revenues decreased by 20%, Rs. 4530.000 millions from Rs. 569.000 millions in the previous year.

INDUSTRY OUTLOOK FOR FY’13:

Passenger vehicle production is expected to grow at 10-12% in 2012-13 and this growth will largely be driven by the small car segment the small car segment will largely drive this growth. The Passenger vehicle industry is also benefitting from India’s favourable favorable demographic profile, which is reflected by its very young population (50% of population under the age of 25) , growing urbanization and trend moving towards smaller families and rising disposable income levels in smaller towns and rural areas.

COMPANY OUTLOOK FOR FY’13:

The Company’s business is expected to expand significantly in the domestic sector this year largely driven by the following factors:

Business with domestic Tier-1 automotive firms: Aditya has secured significant business for automotive parts with newly acquired customers like M/s LEAR Corporation, Mando Brakes and Continental. Aditya’s OEM customers are planning new product launches like Tata Safari Storme and Maruti Suzuki Alto-800. Launch of Aditya’s electric motors on many large platforms with strategic customers Mahindra and Mahindra and Tata Motors.

The Company’s export business share is expected to reduce slightly due to reduced volumes owing to European financial crisis and tapering program life of global Ford programs. However, the Company is expanding its exports with customers Bosch and IAC for supply of wiring harness assemblies.

SIGNIFICANT AWARDS RECEIVED DURING 2011-2012:

Best Supplier Award - Shield for “Human Resource Initiatives” from Maruti Suzuki India Limited. Best Supplier Award – Certificate for “Warranty improvement” from Maruti Suzuki India Limited. Best Supplier Award – Shield for “Design and Development for New Product Brio” from Honda Siel Cars India Limited. Best Supplier Award – Shield for “Delivery” from M/s Honda Siel Cars India Limited.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10010644
Corporate identity number of the company	U35204KA1996PTC020766
Name of the company	ADITYA AUTO PRODUCTS AND ENGINEERING (INDIA) PVT LTD
Address of the registered office or of the principal place of business in India of the company	Plot No.13E, KIADB Industrial Area, Doddaballapur, Bangalore-561203, Karnataka, India
Type of charge	Book Debts Movable Property [not being pledge]
Particular of charge holder	Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India Email: carolin.s@kotak.comm
Nature of description of the instrument creating or modifying the charge	Supplemental Deed of Hypothecation
Date of instrument Creating the charge	30.10.2012
Amount secured by the charge	Rs.820.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the sanction terms Terms of Repayment As per the sanction terms Margin As per the sanction terms Extent and Operation of the charge Pari Passu First Charge basis over the Fixed Assets : Kotak Mahindra Bank Ltd: Rs.400.000 Millions Pari Passu First Charge basis over the Current Assets: Kotak Mahindra Bank Ltd: Rs.420.500 Millions Second Pari Passu Charge over the Current Assets: Kotak Mahindra Bank Ltd: Rs.400.000 Millions Second Pari Passu Charge over the Fixed Assets Kotak Mahindra Bank Ltd: Rs.420.500 Millions
Short particulars of the property charged	First Charge over the Fixed Assets belonging to the Company in favour of Kotak Mahindra Bank Limited (Term Loan Facilities). Pari Passu First Charge over the Current Assets belonging to the Company in favour of Kotak Mahindra Bank Limited (Working Capital Facilities) and State Bank of India Second pari passu over Current Assets in favour of Kotak Mahindra Bank Limited (Term Loan Facilities). Second pari passu Charge over Fixed Assets in favour of Kotak Mahindra Bank Limited (Working Capital Facilities) and State Bank of India. The description of the hypothecated properties are to the Supplemental Deed of Hypothecation All other security remains the same
Date of latest modification prior to the present modification	27.07.2012
Particulars of the present modification	By the present modification, the overall limit has been enhanced from Rs.760.500 Millions to Rs.820.500 Millions and secured by the Current Assets and Fixed Assets as per the terms. And the description of the hypothecated properties are to the Supplemental Deed of Hypothecation. All other security remains the same.

FIXED ASSETS:

• Land – Free Hold
• Land – Leasehold

• Factory Building
• Plant and Machinery
• Test Lab Equipments
• Moulds and Dies
• Furniture and Fixture
• Office Equipment
• Computers
• Housing Tenement
• 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.54.88
UK Pound	1	Rs.83.54
Euro	1	Rs.70.90

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.