MIRA INFORM REPORT

Report Date :

24.12.2013

IDENTIFICATION DETAILS

Name :	CARRARO INDIA PRIVATE LIMITED (w.e.f.16.03.2009)
Formerly Known As :	CARRAEO INDIA LIMITED
Registered Office :	B 2/ 2, MIDC, Ranjangaon, Pune - 412220, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.04.1997
Com. Reg. No.:	25-132629
Capital Investment / Paid-up Capital :	Rs. 568.260 Millions
CIN No.: [Company Identification No.]	U52609PN1997PTC132629
TAN No.: [Tax Deduction & Collection Account No.]	PNEC09276B
PAN No.: [Permanent Account No.]	AAACC5292M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Automotive Equipments, Parts and Components of the Agricultural Tractors.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 4300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is a subsidiary of “Carraro Drive Tech Spa”. It is an established company having satisfactory track record. Profitability of the company seems to be fair. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

Uptick in agriculture and construction spread some cheer as the economy grew a higher-than-expected 4.8 % in the three months through September. Manufacturing rose an annual rate per cent during the quarter and mining fell by 0.4 %, government data showed while farm output rose 46%.

India has emerged as the most attractive investment destination, thanks to a relaxation in foreign direct investment norms, says a report. India is followed by Brazil and China in the ranking part of EY’s Capital Confidence Barometer report based on a survey across 70 nations. The US, France and Japan have emerged as the top three investors likely to invest in India.

India has been ranked 83^rd globally in terms of talent competitiveness of its human capital.  Switzerland, Singapore, Denmark, Sweden and Luxembourg are the top five in the list of 103 nations compiled by INSEAD business school.

Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average putting the country at low, 158^th rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the time taken for tax payments is relatively less in India which is rated ahead of China and Japan.

1 billion smartphone shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost computing in emerging markets. By 2017, total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate of 18.4 % between 2013 and 2017, according to research from IDC.

20 % vacancy rate of office space in Mumbai and Delhi in the third quarter, the highest in Asia after Chengdu, in China. According to Cushman and Wakefield, six Indian cities are among the 10 office markets with the worst vacancies.

Foreign banks will not have to pay stamp duty and capital gains tax, if they convert their branch operations into a wholly owned subsidiary, according to the Reserve Bank of India.

The Reserve Bank of India is planning to launch CPI – indexed bonds aimed to protecting the savings of retail investors from the impact the price rise by December end.

Central Bureau of Investigation has booked State Bank of India, Deputy Managing Director Shyamal Acharya and others in a graft case related to distribution of a loan of over Rs 4000 mn. Gold and jewellery worth Rs 6.7 mn have been recovered from the residence of Acharya.

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	Long term rating : (FITCH) BBB+
Rating Explanation	The default risk is currently low. The capacity for payment of financial commitment is considered adequate.
Date	28.05.2012

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.

INFORMATION PARTED BY

Name :	Mr. Krishna Mohan
Designation :	Treasury Department
Contact No.:	91-2138-662666
Date :	23.12.2013

LOCATIONS

Registered Office/ Factory :	B 2/ 2, MIDC, Ranjangaon, Pune - 412220, Maharashtra, India
Tel. No.:	91-2138-662666/ 232101/ 2/ 3/ 4
Fax No.:	91-2138-232136/ 662677
E-Mail :	cristian_falaschi@carraro.com secretarial_india@carraro.com
Website :	http://www.carraro.com
Location :	Owned

DIRECTORS

As on: 25.06.2013

Name :	Mr. Enrico Elio Gomiero
Designation :	Director
Address :	Via E Degli Scrovegni 7, Padova, Italy
Date of Birth/Age :	27.10.1958
Date of Appointment :	06.06.1997
DIN No.:	00588074
Name :	Mr. Mario Giovanni Carraro
Designation :	Director
Address :	Via Delle Palme 8, Padova, Italy
Date of Birth/Age :	29.10.1929
Date of Appointment :	06.06.1997
DIN No.:	00676573
Name :	Mr. Massimo Zanco
Designation :	Director
Address :	B-401, Oxford Hallmark, Lane No. 7, Koregaon Park, Pune – 411001, Maharashtra, India
Date of Birth/Age :	17.07.1972
Date of Appointment :	31.01.2013
DIN No.:	05245177

KEY EXECUTIVES

Name :	Mr. Krishna Mohan
Designation :	Treasury Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 25.06.2013

Names of Shareholders	No. of Shares
Carraro Drive Tech Spa, Italy	56825998
Carraro Drive Tech Spa Enrico Carraro, Italy	2
Total	56826000

Equity Share Break up (Percentage of Total Equity)

As on: 25.06.2013

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Automotive Equipments, Parts and Components of the Agricultural Tractors.

Products :

ITC Code	Product Descriptions
84829900	Gears

Exports :

Products :

· Finished goods

Countries :

· European countries

· China

· Latin America

· USA

Imports :

Products :

· Raw Materials

Countries :

· European countries

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Licensed Capacity *	Installed Capacity **	Actual Production
Agricultural Transmissions	--	42300	14695
Transmissions for Loaders	--	54000	10547
Final Drives	--	30000	2358
Axles (Front Axle Beam)	--	67500	16493
Axles (Rear Axle)	--	54000	11593
Skid Steer Axles	--	162000	13483
Trumpets	--	43722	4813

Note:

* As per the Industrial policy notification No. S.O / 477 (E) dated July 25, 1991 issued by the Government of India, Ministry of Industry, Department of industrial Development, The Manufacture of products of the Company are Exempt from Industrial licensing

** As certified by the management and have not been verified by the auditors, being a technical matter.

GENERAL INFORMATION

Customers :

End users

No. of Employees :

400 (Approximately)

Bankers :

· IDBI Bank Limited, IDBI Towerwtc Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

· Axis Bank Limited, 1262/B, Sterling Plaza, Jangli Maharaj Raod, Deccan Gymkhana, Pune - 411004, Maharashtra, India

· Export - Import Bank of India, Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai - 400005, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans:
- From Banks	357.870	255.000
Working capital loans from banks	765.016	828.211
Total	1122.886	1083.211

Banking Relations :	--
Auditors :
Name :	Lovelock and lews Chartered Accountants
Address :	252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400028, Maharashtra, India
PAN No.:	AABFL5878L
Holding company :	Ø Carraro Drive Tech SpA (Direct Holding Company) Ø Carraro Spa (Holding Company of Carraro Drive Tech SpA)
Ultimate holding Company :	Ø Finaid SpA
Fellow Subsidiary company :	Ø Carraro North America Inc. (V.B.) Ø Carraro China Drive Systems Company Limited Ø Fabryka OSI Napedowych S.A. (Fon S.A) Ø Gearworld North America LLC (Mini Gears) Ø MG MiniGears (Suzhou Company Limited) Ø MG MiniGears SpA(Division Poggiofi) Ø O and K Antriebstechnik GMBH Ø O and K Antriebstechnik GMBH and Company KG Ø Siap SpA Ø Turbo Gears India Private Limited Ø Carraro Technologies India Private Limited Ø Maus SpA Ø Carraro Argentina S.A. Ø Carraro International S.A. Ø Carraro International S.A. Succ DIL
Subsidiaries :	Ø Carraro PNH Components India Private Limited (upto November 23, 2011)

CAPITAL STRUCTURE

As on: 25.06.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
76001000	Equity Shares	Rs.10/- each	Rs. 760.010 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
56826000	Equity Shares	Rs.10/- each	Rs. 568.260 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	568.260	568.260
(b) Reserves & Surplus	523.591	372.458
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1091.851	940.718
(3) Non-Current Liabilities
(a) long-term borrowings	511.011	472.947
(b) Deferred tax liabilities (Net)	62.756	36.697
(c) Other long term liabilities	10.000	10.000
(d) long-term provisions	21.568	10.150
Total Non-current Liabilities (3)	605.335	529.794
(4) Current Liabilities
(a) Short term borrowings	765.016	828.211
(b) Trade payables	2968.598	2027.174
(c) Other current liabilities	218.710	96.581
(d) Short-term provisions	66.676	44.657
Total Current Liabilities (4)	4019.000	2996.623
TOTAL	5716.186	4467.135
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1148.669	1048.320
(ii) Intangible Assets	1.053	0.000
(iii) Capital work-in-progress	8.061	24.233
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	10.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	217.747	179.530
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	1375.530	1262.083
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	1557.330	1088.452
(c) Trade receivables	1769.647	1136.200
(d) Cash and cash equivalents	254.337	298.387
(e) Short-term loans and advances	758.899	681.661
(f) Other current assets	0.443	0.352
Total Current Assets	4340.656	3205.052
TOTAL	5716.186	4467.135

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		568.260
2] Share Application Money		0.000
3] Reserves & Surplus		316.689
4] (Accumulated Losses)		0.000
NETWORTH		884.949
LOAN FUNDS
1] Secured Loans		732.001
2] Unsecured Loans		121.140
TOTAL BORROWING		853.141
DEFERRED TAX LIABILITIES		16.962
TOTAL		1755.052
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1027.001
Capital work-in-progress		43.411
INVESTMENT		10.000
DEFERRED TAX ASSETS		0.171
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	533.564
	Sundry Debtors	517.937
	Cash & Bank Balances	250.670
	Other Current Assets	0.312
	Loans & Advances	316.966
Total Current Assets		1619.449
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	859.310
	Other Current Liabilities	55.106
	Provisions	30.594
Total Current Liabilities		945.010
Net Current Assets		674.469
MISCELLANEOUS EXPENSES		0.000
TOTAL		1755.052

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	8287.007	4764.402	2001.741
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	7924.915	4590.105	1892.256
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		362.092	174.297	109.485
Less/ Add	DEPRECIATION/ AMORTISATION		130.891	113.362	98.799
	PROFIT BEFORE TAX		231.201	60.935	10.686
Less	TAX		76.934	5.166	4.038
	PROFIT AFTER TAX		154.267	55.769	6.648
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	5170.881	2068.321	846.051
	IMPORTS
		Raw Materials and Components	2289.844	1399.759	264.918
		Capital Goods	40.093	36.823	16.825
	TOTAL IMPORTS		2329.937	1436.582	281.743
	Earnings Per Share (Rs.)		2.71	0.98	0.12

Particulars	31.03.2013
Sales Turnover (Approximately)	8310.000

The above information has been parted by Mr. Krishna Mohan

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.86	1.17	0.33
Return on Total Assets (PBT/Total Assets}	(%)	4.05	1.37	0.40
Return on Investment (ROI) (PBT/Networth)		0.21	0.06	0.01
Debt Equity Ratio (Total Debt/Networth)		1.17	1.38	0.96
Current Ratio (Current Asset/Current Liability)		1.08	1.07	1.71

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last four years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans:
- From Banks	0.000	25.000
- Foreign Currency Loans From Financial Institutions	16.521	66.267
- Foreign Currency Loans From Related Parties	136.620	126.680
Total	153.141	217.947

CASE DETAILS

Lodging No.:

ITXAL/2028/2013

Filling Date:

27/11/2013

Petitioner:-	THE COMMISSIONER OF INCOME Tax-1	Respondent:-	M/S CARRARO INDIA LIMITED
Petn.Adv.:-	VIPUL ARUN BAJPAYEE (14135)
District:-	MUMBAI

Bench:-	Division
Status:-	Pre-Admission	Category:-	Tax Appeals
Last Date:-	04/12/2013	Stage:-
Last Coram:-	Registrar (OS)/ Prothonotary and Sr. Master

Act :-

Income Tax Act, 1961

Under Section:-

260A

BUSINESS OPERATIONS:

During the year 20112012 there was an increase in sales by around 74% and the company recorded a net profit before tax of Rs 231.200 Millions. Operating Profit (EBITDA) increased by 96% from Rs 278.100 Millions (5.84% of revenue) to Rs 544.900 Millions (6.57% of revenue). Profit after taxation (PAT) increased by 177% from Rs 55.800 Millions (1.17% of total revenue) to Rs 154.300 Millions (1.86% of the total revenue). Improvement in profitability in the current year is mainly due to increase in sales volumes along with improved internal capacity utilization and better control over operating costs.

BUSINESS OUTLOOK:

The company has achieved substantial growth in sales along with improved profitability during the current financial year 2011-12. Company is expecting to consolidate the gains of previous year and continue to grow in domestic as well as export sector in the coming financial year 2012-13. This favorable outlook is due to ongoing recovery of developed economies, improvement in emerging markets and continued shift of production from Carraro Group units in Europe. Company is leveraging on its superior technology in providing efficient transmission solution to Construction as well as Agricultural sector leading to further strengthen its customer portfolio. The Company will continue to invest in enhancing the production capacity in line with Head Quarter strategy.

SCHEME OF AMALGAMATION

During the year, pursuant to the Scheme of Amalgamation between Carraro PNH Components India Private Limited (Carraro PNH) and the Company, the entire undertaking of Carraro PNH Components India Private Limited has been transferred to and vested in the Company effective April 1, 2010, the Appointed Date, as approved by the shareholders and sanctioned by the High Court of Judicature at Bombay vide order dated November 22, 2011.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10358848	17/12/2012 *	360,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTER COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B65455230
2	10289285	20/10/2011 *	139,300,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B24954570
3	10274566	15/06/2011 *	150,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, 21ST FLOOR, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B14739056
4	10280366	15/06/2011 *	150,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP AMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B15810179
5	10156984	17/07/2013 *	450,000,000.00	EXPORT - IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B82092685
6	10109467	22/05/2012 *	430,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, 214/215, 2ND FLOOR, CITY  MALL, GANESHKHIND ROAD, PUNE, MAHARASHTRA - 411007, INDIA	B40728560
7	10063741	22/05/2012 *	690,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B39871819
8	80039377	13/06/2012 *	120,000,000.00	BNP PARIBAS.	5, GODREJ MILLENIUM,, 9, KOREGAON ROAD, PUNE, MAHARASHTRA - 411001, INDIA	B42092189

* Date of charge modification

FIXED ASSETS

Ø Land

Ø Buildings

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Office Equipments

Ø Computers

Ø Vehicles

Ø Dies, Pattern, Fixtures and Tools

Ø Computer Software

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. 61.99
UK Pound	1	Rs. 101.37
Euro	1	Rs. 84.81

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	DPH

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	5
--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	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.