MIRA INFORM REPORT

Report Date :

18.04.2013

IDENTIFICATION DETAILS

Name :	FEDERAL-MOGUL GOETZE (INDIA) LIMITED
Registered Office :	7870-7877, F-I, Roshanara Plaza Building, Roshanara Road, Delhi – 110007
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	26.11.1954
Com. Reg. No.:	55-002452
Capital Investment / Paid-up Capital :	Rs.556.321 Millions
CIN No.: [Company Identification No.]	L74899DL1954PLC002452
TAN No.: [Tax Deduction & Collection Account No.]	BLRG03352G
PAN No.: [Permanent Account No.]	AAACG3769M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacture of Auto Components
No. of Employees :	4535 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 16000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a joint venture with Goetze – Werke of Germany. It is an old and reputed company having a good track record. Financial position is good. Trade relations are reported to be decent. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for good business dealings on a 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	December 2011

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A2+
Rating Explanation	Strong degree of safety and low credit risk
Date	December 2011

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 :	7870-7877, F-I, Roshanara Plaza Building, Roshanara Road, Delhi – 110007, India
Tel. No.:	91-11-23827435
Fax No.:	91-11-30489308
E-Mail :	rogoetze@nda.vsnl.net.in info@goetzeindia.net goetzein@satyam.net.in Khalid.khan@federalmogul.com
Website :	http://www.goetzeindia.net
Corporate Office :	Paras Twin Towers, Tower B, 10^th Floor, Sector- 54, Golf Course Road, Gurgaon, Haryana, India
Tel. No.:	91-124-4784530
Fax No.:	91-124-4292840
Factory 1 :	Bahadurgarh, Patiala - 147021, Punjab, India
Factory 2 :	Yelahanka, Bangalore, Karnataka, India
Factory 3 :	SPL 1240-44, RIICO Industrial Area, Phase-l Extn., Bhiwadi, Rajasthan, India
Factory 4 :	Plot No.46, Sector-11, IIE-Pantnagar, Udham Singh Nagar, Uttarakhand, India

DIRECTORS

As on 31.12.2011

Name :	Mr. K N Subramaniam
Designation :	Chairman and Director
Name :	Mr. Sunit Kapur
Designation :	Managing Director
Name :	Mr. Dan Brugger
Designation :	Whole Time Finance Director and Chief financial officer
Name :	Mr. Bernhard Motel
Designation :	Directors
Name :	Mr. Mukul Gupta
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Khalid Khan
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	41715454	74.98
Sub Total	41715454	74.98
Total shareholding of Promoter and Promoter Group (A)	41715454	74.98
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5467569	9.83
Financial Institutions / Banks	2861	0.01
Insurance Companies	1919816	3.45
Foreign Institutional Investors	106647	0.19
Sub Total	7496893	13.48
(2) Non-Institutions
Bodies Corporate	604371	1.09
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2465484	4.43
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	3343865	6.01
Any Others (Specify)	6063	0.01
Trusts	6063	0.01
Sub Total	6419783	11.54
Total Public shareholding (B)	13916676	25.02
Total (A)+(B)	55632130	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	55632130	0.00

BUSINESS DETAILS

Line of Business :

Manufacture of Auto Components

Products :

ITC Code	Product Description
Pistons	840991.04
Piston Rings	840991.05
Engine Parts – Petrol	840991.09

PRODUCTION STATUS (As on 31.12.2011)

Particulars	Unit	Installed Capacity *	Actual Production
Piston Rings	Nos	56997000	52349365
Pistons	Nos	19055000	18251502
Pins	Nos	16545003	17587359
Valve Train Components	Nos	60457500	48162932
Structural Components	Nos	5870000	2059978

* Installed Capacity as certified by the management

GENERAL INFORMATION

No. of Employees :

4535 (Approximately)

Bankers :

· Deutsche Bank AG

· HDFC Bank Limited

· ING Vysya Bank Limited

· State Bank of India

· State Bank of Patiala

· Axis Bank Limited

· Yes Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.12.2011	As on 31.12.2010
Term loans from banks	80.000	120.000
Interest accrued and due on term loans	1.067	1.282
Vehicle loans from banks	0.000	0.113
Working capital loans from banks	858.061	360.729
Interest accrued and due on working capital loans	0.000	0.122
Total	939.128	482.246
1 Term loans repayable within one year Rs 40.000 Millions (Previous year Rs 40.000 Millions). 2 Term loans from banks of Rs 80.000 Millions (Previous year Rs 120.000 Millions) are secured by first pari passu charge on entire fixed assets of the Company including land and building and whole of moveable assets including plant and machinery, spares, tools and accessories, furniture and fixtures and other moveable assets of the Company. 3 Vehicle loans of Rs Nil (Previous year Rs 0.113 Million) from banks are secured by way of hypothecation of the underlying vehicles. 4 Working capital loans from banks are secured against hypothecation of current assets of the Company, both present and future.

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Holding Company :	Federal Mogul Holdings Limited (Mauritius
Subsidiary :	Federal-Mogul TPR (India) Limited
Ultimate Holding Company:	Federal Mogul Corporation, USA
Fellow Subsidiaries :	· Federal Mogul Burscheid GMBH, Germany · Federal Mogul Maysville (USA) · Federal Mogul Operation S.R.L (Italy) · Federal Mogul Bimet S.A. (Poland) · Federal Mogul Nurnberg, GMBH (Germany) · Federal Mogul Wiesbaden GMBH, (Germany) · Federal Mogul Power Train System (South Africa) · Federal Mogul Holding Deutschland (Germany) · Federal Mogul Valves (PTY) Limited (South Africa) · Federal Mogul Limited (U.K.) · Federal Mogul KK (Japan) · SSCFRAN FM Financial Services SAS Veurey Voroize (France) · Federal Mogul Financial Services FRANCTNL (France) · Federal Mogul Gorzyce, S.A. (Poland) · Federal Mogul Friedberg, GMBH (Germany) · Federal Mogul Sintered Products Limited (U.K.) · Federal Mogul Sealing Systems, GMBH (Germany) · Federal Mogul Brasil do Limited (Brazil) · Federal Mogul Friction Products Limited (Thailand) · Federal Mogul Corporation Power Train Systems (USA) · Federal Mogul Power Train Systems Schofield (USA) · Federal Mogul S.A.R.L. (Switzerland) · Federal Mogul France, S.A. (France) · Federal Mogul Corporation, Lake City (USA) · Federal Mogul Corporation, Garennes (France) · Federal Mogul Dongsuh Piston Company Limited (China) · Federal Mogul Corp, Mgmoogus (USA) · KFM Bearing Company (South Korea) · Federal Mogul Bradford Limited · T and N Limited Manchester (England) · Federal Mogul Powertrain Spara, MII · Federal Mogul KK Yokohama · Federal Mogul Sintertech SVC Functionnels · Federal Mogul Powertrain Inc, Southbend · Federal Mogul Kontich · Federal Mogul Schofield · Federal Mogul Bearings India Limited (India) · Federal-Mogul Automotive Products India Limited (India) (Formerly Federal Mogul Automotive Product (India) Private Limited) · Federal-Mogul VSP India Limited (India) (Formerly known as Ferodo India Private Limited) · Federal-Mogul PTSB India Private Limited (India) (Formerly known as Federal-Mogul Trading India Private Limited)
Associates :	· GI Power Corporation Limited (upto October 05, 2010) · GTZ Securities Limited

CAPITAL STRUCTURE

As on 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs.10/- each	Rs.800.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
55632130	Equity Shares	Rs.10/- each	Rs.556.321 Millions

Of the above Equity Shares:

a) 1,252,680 (Previous year 1,252,680) equity shares have been allotted as Bonus Shares by capitalisation of General Reserve.

b) 8,429,183 (Previous year 8,429,183) equity shares have been allotted as Bonus Shares by capitalisation of Securities Premium Account.

c) 84,207 (Previous year 84,207) equity shares have been issued for consideration other than cash.

d) 33,408,581 (Previous year 33,408,581) equity shares are held by Federal Mogul Holding Limited, Mauritius, the parent company. Further 8,306,873 (Previous year 8,306,873) equity shares are held by Federal Mogul Vemogensuverwaltungs GMBH, a fellow subsidiary company. The ultimate holding company is Federal-Mogul Corporation, USA.

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		556.321	556.321	556.321
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3595.590	3220.974	2877.082
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4151.911	3777.295	3433.403
LOAN FUNDS
1] Secured Loans		939.128	482.246	664.897
2] Unsecured Loans		599.312	382.628	346.483
TOTAL BORROWING		1538.440	864.874	1011.380
DEFERRED TAX LIABILITIES		145.935	157.552	44.513
TOTAL		5836.286	4799.721	4489.296
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4246.318	3546.734	3662.703
Capital work-in-progress		388.357	357.626	172.113
INVESTMENT		209.234	209.234	209.234
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1392.016	1056.405	913.537
	Sundry Debtors	1506.979	1194.312	1006.873
	Cash & Bank Balances	26.293	28.267	20.772
	Other Current Assets	82.133	60.325	46.190
	Loans & Advances	718.411	595.413	497.999
Total Current Assets		3725.832	2934.722	2485.371
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	331.091	1437.311	1328.610
	Other Current Liabilities	388.366	375.816	388.015
	Provisions	456.356	459.459	371.481
Total Current Liabilities		2733.455	2272.586	2088.106
Net Current Assets		992.377	662.136	397.265
MISCELLANEOUS EXPENSES		0.000	23.991	47.981
TOTAL		5836.286	4799.721	4489.296

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	10604.586	8582.860	7233.120
		Trading sales	472.400	382.333	269.425
		Job work income	113.623	109.100	97.158
		Other Income	500.767	444.452	286.909
		TOTAL (A)	11691.376	9518.745	7886.612
Less	EXPENSES
		Raw materials and components consumed	4281.900	3252.622	2340.687
		Purchase of trading goods	365.635	278.241	200.058
		Personnel expenses	2133.151	1780.096	1557.014
		Operating and other expenses	3877.522	3143.552	2454.178
		Decrease/ (increase) in inventories	(244.114)	(61.927)	71.445
		Amortisation of miscellaneous expenses	23.991	23.990	23.990
		Increase / (Decrease) of excise duty on finish goods	0.000	0.000	(21.858)
		TOTAL (B)	10438.085	8416.574	6625.514
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1253.291	1102.171	1261.098
Less	FINANCIAL EXPENSES (D)		248.566	139.316	217.045
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1004.725	962.855	1044.053
Less/ Add	DEPRECIATION/ AMORTISATION (F)		536.589	482.246	494.923
	PROFIT BEFORE TAX (E-F) (G)		468.136	480.609	549.130
Less	TAX (H)		111.784	113.039	45.787
	PROFIT AFTER TAX (G-H) (I)		356.352	367.570	503.343
Less	Prior period (income) / expense		(18.265)	23.678	42.382
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		440.132	96.240	(364.721)
	BALANCE CARRIED TO THE B/S		814.749	440.132	96.240
	EARNINGS IN FOREIGN CURRENCY		838.940	621.881	530.484
	IMPORTS
		Raw Materials	1197.885	1053.378	818.499
		Stores & Spares	687.275	312.494	122.362
		Capital Goods	957.391	247.856	161.286
	TOTAL IMPORTS		2842.551	1613.728	1102.147
	Earnings Per Share (Rs.)		6.73	6.18	8.29

QUARTERLY RESULTS

PARTICULARS	31.03.2012	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^ndQuarter	3^rd Quarter	4^th Quarter
Sales Turnover	3057.400	3048.600	2911.400	2849.000
Total Expenditure	2785.000	2810.600	2674.900	2897.600
PBIDT (Excl OI)	272.400	238.000	236.500	(48.600)
Other Income	58.700	53.300	29.200	(0.300)
Operating Profit	331.000	291.300	265.700	(48.900)
Interest	84.900	86.100	63.900	60.600
Exceptional Items	0.000	(62.600)	0.000	0.000
PBDT	246.100	142.600	201.800	(109.600)
Depreciation	160.400	146.400	151.500	161.000
Profit Before Tax	85.700	(3.800)	50.300	(270.600)
Tax	37.600	4.900	29.900	(47.200)
Reported PAT	48.200	(8.700)	20.400	(223.400)
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	48.200	(8.700)	20.400	(223.400)

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	3.48	3.86	6.38
Net Profit Margin (PBT/Sales)	(%)	4.41	5.60	7.59
Return on Total Assets (PBT/Total Assets}	(%)	5.87	7.42	8.93
Return on Investment (ROI) (PBT/Networth)		0.11	0.13	0.16
Debt Equity Ratio (Total Debt /Networth)		0.37	0.23	0.29
Current Ratio (Current Asset/Current Liability)		1.36	1.29	1.19

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

OPERATIONS

The Net income of the Company during the year ended 31st December 2011 was Rs. 11691.370 millions as against Rs. 9518.740 millions for the year ended 31st December 2010.

During the year, the Company made a Net Profit after Tax of Rs. 374.610 millions as against the Net Profit after Tax of Rs. 343.890 millions in the last year.

The year witnessed a global slowdown, impacting the Indian economy including the automobile sector. The Company continued its focus on all round cost reduction in different areas of operations to achieve savings and gains, which significantly contributed to the above performance. The Company's high quality products enjoy well acceptance in the market place. In line with its philosophy, the Company is committed to provide the highest quality of products to its customers.

In view of requirement of funds for the operations of the Company, no dividend is recommended for the year ended 31st December 2011

MANAGEMENT DISCUSSION AND ANALYSIS:

INDUSTRY STRUCTURES AND DEVELOPMENTS

Automotive Industry, globally, as well in India, is one of the key sectors of the economy. Due to its deep forward and backward linkages with several key segments of the economy, automotive industry has a strong multiplier effect and acts as one of the drivers of economic growth.

The auto industry is highly comprehensive consisting of organized as well as unorganized sector and is highly fragmented with a significant number of small and medium-sized companies because of which the business rules are changing to meet the tough competition prevailing in the industry. Innovation, technological upgradation and cost pruning hold the key of success to meet the expectations of the exigent competitive circumstances.

The Indian auto component industry has been navigating through a period of challenge. During the year 2011, the growth in the automobiles segment was moderate. Consequently, the growth in production of auto components was also restrained. Global recession has hit the Indian auto industry; impact of recession is evident now on industry as sales and growth of automobile companies has declined. While the industry is going through cyclical hiccups currently, there are expectations that this factor would weaken in the future on account of strong structural tailwinds. As these short term pressures recede, the auto and auto components industry is expected to revert to a healthy growth trajectory supported by several structural positives associated with the Indian economy, including growing replacement demand, rising disposable incomes and demographic advantage. The recent economic crisis provided the impetus for a structural change in the auto industry, setting the stage for growth over the next decade.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

They operate mainly in two segments i.e. OEM's and the aftermarket. The company has a balanced approach to the OEM's and Aftermarket, which helps then in capitalizing on their strengths in both segments and to respond to market fluctuations and customer strategies.

OUTLOOK

The Indian automobile sector, which was hit by declining sales growth in 2011, is expected to grow moderately in 2012 due to healthy growth prospects and strong fundamentals of the economy. Indian auto component industry is expected to follow a stable outlook in line with the growth in the automobile sector. The corporates are optimistic about the growth of the automobile industry on the back of sound fundamentals of Indian economy and hopes for improved industrial growth in the times to come. The players in the industry are expected to resort to cost-cutting measures, to maintain profit margins. The auto sector is expected to remain stable even as competition-led pricing pressure, amid muted sales would lead to a drop in operating profitability. In the current scenario, newly defined rules to excel in the industry are specialization, development and delivery that hold the key to success in the auto component industry.

To remain competitive in the challenging and demanding environment, the yardstick has to be high in anticipation of the requirement of the customers and markets. The Company would focus its energy on its capabilities like high technology based products, management systems etc, which will result in retaining/ enhancing customer access, reduced costs and improved margins. Technical edge, specialization, innovation and networking will determine the success of the Company in this competitive environment. The combination of effective manufacturing costs along with quality systems would give an edge to the Company in terms of pricing and quality.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.12.2011	As on 31.12.2010
Fixed Deposits	0.319	0.364
Short term loans and advances
from others	6.100	6.100
Inter-corporate deposits* (Due within one year Rs 583.500 Millions, Previous year Rs 375.000 Millions)	583.500	375.000
Interest accrued and due on inter corporate deposits	9.393	1.164
Total	599.312	382.628
*Includes Rs 350.000 Millions (Previous year Rs 230.000 Millions) due to Federal-Mogul TPR (India) Limited, the subsidiary company and balance of Rs 233.500 Millions (Previous year Rs 145.000 Millions) is due to other fellow subsidiaries.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Rs. In Millions

Particular	31.12.2011	31.12.2010
Bank Guarantees	94.988	45.747
Claims/notices contested by the company
i) Excise duty	15.527	1.787
ii) Sales Tax	40.591	40.591
iii) Employee Related Cases	13.618	10.244
iv) Electricity Demand	5.224	5.224
v) Income Tax Demands	64.813	42.096
vi) Consumer Cases (settled during the current year)	0.000	3.091

FIXED ASSETS

• Free hold Land
• Lease hold Land
• Buildings
• Furniture and Fittings and Office Equipments
• Plant and machinery
• Vehicles

As per Website

Profile

Subject was established in 1954 as a joint venture with Goetze-Werke of Germany. 

Goetze-Werke of Germany is now owned by Federal-Mogul Corporation, a $6.3 billion global company and one of the leading manufacturers of automotive components in the world.

Subject is the largest manufacturer of pistons and piston rings in India.

MILESTONES

1954	Incorporated as a JV with Goetze Werke
1957	Ring and liner production	Patiala
1958	Piston production as escorts (Automotive Division)  (Collaboration:Mahle)	Patiala
1960	Cast iron / Forged piston production started	Patiala
1968	Pins / ring carrier production started	Patiala
1977	Piston / ring production started	Bengaluru
1982	Steel rings / Large bore locomotive piston	Bengaluru
1985	Light alloy products	Patiala
1989	Auto thermic pistons production	Bengaluru
1990	Moly coated / IKA / chrome oil rings	Patiala
1992	Large bore rings / pistons for battle tanks	Bengaluru
1994	Composite pistons / new ring foundry	Bengaluru
1996	Escorts (Automotive Division) hived off into joint venture with M/S Mahle, Germany
1997	Goetze TP (India) Limited -  Manufacturer of steel rings
2001	Merger of Federal-Mogul sintered products Limited with Goetze (India) Limited.
2003	Merger of Escorts pistons activities with Goetze (India) Limited.
2004	Introduction of chrome-ceramic rings
2004	Technical collaboration for pistons with Federal-Mogul Corporation
2006	Majority stakeholding acquisition by Federal-Mogul Corporation
2006	Name changed "Goetze (India) Limited" to "Federal-Mogul Goetze (India) Limited"

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.53.94
UK Pound	1	Rs.82.77
Euro	1	Rs.71.05

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		55

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.