MIRA INFORM REPORT

Report Date :

27.12.2013

IDENTIFICATION DETAILS

Name :	NEC INDIA PRIVATE LIMITED
Registered Office :	4^th Floor, Vijaya Building, 17, Barakhamba Road, Connaught Place, New Delhi – 110001
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.08.2006
Com. Reg. No.:	55-151472
Capital Investment / Paid-up Capital :	Rs.466.000 millions
CIN No.: [Company Identification No.]	U72300DL2006FTC151472
TAN No.: [Tax Deduction & Collection Account No.]	DELN07919C
PAN No.: [Permanent Account No.]	AACCN3496J
Legal Form :	Private Limited Liability Company
Line of Business :	Selling and Marketing of NEC IT products and solutions and trading and providing installation, commissioning, integration etc. and other services related to the telecommunication sector.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 6500000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of NEC CORPORATION, JAPAN. It is an established company having moderate track record. There appears drastic dip in profit of the company during financial year 2012, and reserves of the company seems to be low. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution. Note: Latest financial for the year 2013 is not available with us.

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.

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 DECLINED BY

Name :	Mr. Deepak Arora
Designation :	Accounts Officer
Contact No.:	91-11-61101000
Date :	26.12.2013

LOCATIONS

Registered Office/ Corporate Office :	4^th Floor, Vijaya Building, 17, Barakhamba Road, Connaught Place, New Delhi – 110001, India
Tel. No.:	91-11-61101000/ 46570000/ 61101060
Fax No.:	91-11-61101001/ 46570001
E-Mail :	enquiries@necindia.in mayurbatra_ca@rediffmail.com deepak.arora@necindia.in rajeev.sehgal@necindia.in
Website :	http://www.necindia.in
Branch Office 1 :	Unit No.1003-1004, 10^th Floor, Prestige Meridian-II , No.30, M.G. Road, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-40004600
Branch Office 2 :	1^stFloor, RR Towers III, Thiru-vi-ka Industrial Estate, Guindy, Chennai - 600032, Tamilnadu, India
Tel. No.:	91-44-42965600
Branch Office 3 :	4^th Floor, 215 Atrium, Kankia Spaces, Andheri- Kurla Road, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-61435900
Branch Office 4 :	“Royal Park”, Ground Floor, Unit No.4, No. # 34/3, Park Road, Near To Hotel Ramada, Bangalore – 560001, Karnataka, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Partho Dasgupta

Designation :

Managing Director

Address :

CF-01, Banyantree Apartments, 154, Kariyammana Agrahara Road, DB Halli Signal, Orr, Bangalore – 560037, Karnataka, India

Date of Birth/Age :

19.02.1965

Date of Appointment :

30.09.2013

DIN No.:

06516398

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72300DL2006FTC151472	NEC INDIA PRIVATE LIMITED	Managing director	30/09/2013	01/03/2013	-	Active	NO
2	U74899DL2005PLC142239	NEC TECHNOLOGIES INDIA LIMITED	Director	26/04/2013	26/04/2013	-	Active	NO

Name :

Mr. Toshiya Matsuki

Designation :

Director

Address :

4-15-12-301, Shirokane, Minato-Ku, Tokyo, Japan

Date of Birth/Age :

09.05.1960

Date of Appointment :

30.09.2013

DIN No.:

06550871

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72300DL2006FTC151472	NEC INDIA PRIVATE LIMITED	Director	30/09/2013	15/04/2013	-	Active	NO

Name :

Mr. Shigeyuki Fujii

Designation :

Director

Address :

6, Marina Boulvard, #14-19, The SAIL@MARINA Bay, Singapore – 018985, Singapore

Date of Birth/Age :

12.11.1959

Date of Appointment :

29.09.2011

DIN No.:

05102314

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72300DL2006FTC151472	NEC INDIA PRIVATE LIMITED	Director	29/09/2011	06/08/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rajesh Taneja
Designation :	Secretary
Address :	E-212, Shastri Nagar, Ghaziabad - 201001, Uttar Pradesh, India
Date of Birth/Age :	04.11.1972
Date of Appointment :	21.12.2012
PAN No.:	ACRPT7720M
Name :	Mr. Deepak Arora
Designation :	Accounts Officer
Name :	Nobuki Akinaga
Designation :	Deputy Managing Director
Name :	Koichiro Koide
Designation :	Deputy Managing Director
Name :	Kenji Ogawa
Designation :	Deputy Managing Director
Name :	Tatsuo Yoshida
Designation :	Marketing Manager
Name :	Yoshihiko Sunamura
Designation :	AGM
Name :	Hiromitsu Toru
Designation :	Head of Production Unit
Name :	Babji Tanuk
Designation :	GM-Technical
Name :	Norimasa Aoyama
Designation :	Vice President

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
NEC Asia Pacific Pte. Limited, Singapore	120939338
NEC Corporation, Japan	24760000
Total	145699338

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Selling and Marketing of NEC IT products and solutions and trading and providing installation, commissioning, integration etc. and other services related to the telecommunication sector.

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Bank of Tokyo

Banking Relations :	--
Auditors :
Name :	B.S.R. and Company Chartered Accountants
Address :	Building No.10, 8^th Floor, Tower B, DLF Cyber City, Phase - II, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-2549191
Fax No.:	91-124-2549101
Income-tax PAN of auditor or auditor's firm :	AAAFB2345S
Holding Company :	NEC Corporation, (Control Exists) Address: 7-1, Chiba 5 – Chome, Minato-Ku, Tokyo, Japan
Fellow Subsidiaries :	· NEC Asia Pacific Pte. Limited (formerly NEC Asia Pte. Limited) NEC Vietnam Co. Limited NEC (UK) Limited NEC Infrontia Corporation NEC Corporation of America NEC Display Solutions Limited NEC Corporation of Malaysia Sdn. Bhd NEC Unified Solutions (Shanghai) Co. Limited NEC Networks and System Integration Corporation NEC Europe Limited NEC Logistics (Thailand) Company Limited NESIC (Thailand) Limited NEC Communication Systems Limited NEC Logistics Singapore Pte. Limited NEC Platform Technologies Hong Kong Limited NEC Nederland B.V. NEC Learning Limited NEC Infrontia Thai Limited NEC Taiwan Limited NEC Professional Support Limited NEC Soft Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
145699338	Equity Shares	Rs.10/- each	Rs.1456.993 millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
46600000	Equity Shares	Rs.10/- each	Rs.466.000 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	466.000	304.000
(b) Reserves & Surplus	171.784	167.408
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	990.993	0.000
Total Shareholders’ Funds (1) + (2)	1628.777	471.408
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	10.508	7.124
Total Non-current Liabilities (3)	10.508	7.124
(4) Current Liabilities
(a) Short term borrowings	15.104	107.552
(b) Trade payables	735.065	812.467
(c) Other current liabilities	65.638	110.855
(d) Short-term provisions	3.558	3.443
Total Current Liabilities (4)	819.365	1034.317
TOTAL	2458.650	1512.849
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	71.583	29.473
(ii) Intangible Assets	0.117	0.003
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	15.417	15.049
(d) Long-term Loan and Advances	166.036	66.453
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	253.153	110.978
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	148.663	106.666
(c) Trade receivables	1050.658	1160.888
(d) Cash and cash equivalents	954.506	84.271
(e) Short-term loans and advances	51.072	47.037
(f) Other current assets	0.598	3.009
Total Current Assets	2205.497	1401.871
TOTAL	2458.650	1512.849

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		304.000
2] Share Application Money Pending Allotment		0.000
3] Reserves & Surplus		142.037
4] (Accumulated Losses)		0.000
NETWORTH		446.037
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		30.000
TOTAL BORROWING		30.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		476.037
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22.165
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		9.858
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51.873
	Sundry Debtors	1357.907
	Cash & Bank Balances	46.228
	Other Current Assets	3.386
	Loans & Advances	66.322
Total Current Assets		1525.716
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	975.103
	Other Current Liabilities	72.711
	Provisions	33.888
Total Current Liabilities		1081.702
Net Current Assets		444.014
MISCELLANEOUS EXPENSES		0.000
TOTAL		476.037

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales and Services	1957.620	1855.291	2553.231
		Other Income			22.781
		TOTAL (A)	1957.620	1855.291	2576.012
Less	EXPENSES
		Cost of Goods Sold	1948.155	1810.341	1338.995
		Personnel Expenses			226.016
		Operating Expenses			675.836
		TOTAL (B)	1948.155 (including interest and depreciation)	1810.341 (including interest and depreciation)	2240.847
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				335.165
Less	INTEREST ON BANK LOAN (D)				1.626
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)				333.539
Less/ Add	DEPRECIATION/ AMORTISATION (F)				10.042
	PROFIT BEFORE TAX (E-F) (G)		9.465	44.950	323.497
Less	TAX (H)		5.089	19.579	73.917
	PROFIT AFTER TAX (G-H) (I)		4.376	25.371	249.580
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		167.409	142.038	(107.542)
	BALANCE CARRIED TO THE B/S		171.785	167.409	142.038
	EARNINGS IN FOREIGN CURRENCY
		Service Income	364.511	261.655	7.115
		Commission Income			235.084
		Management Support Fee			39.083
		Reimbursement of Expenses			3.542
	TOTAL EARNINGS		364.511	261.655	284.824
	IMPORTS
		Capital Goods	NA	0.784	0.112
		Replacement spare parts	NA	11.883	0.000
	TOTAL IMPORTS		NA	12.667	0.112
	Earnings Per Share (Rs.)		0.09	0.83	8.21

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.22	1.37	9.69
Net Profit Margin (PBT/Sales)	(%)	NA	NA	12.67
Return on Total Assets (PBT/Total Assets}	(%)	0.39	3.00	20.90
Return on Investment (ROI) (PBT/Networth)		0.01	0.10	0.73
Debt Equity Ratio (Total Debt/Networth)		0.01	0.23	0.07
Current Ratio (Current Asset/Current Liability)		2.69	1.36	1.41

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	Yes
10]	Designation of contact person	Yes
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	No
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	No
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	No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPAN

UNSECURED LOANS

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Short-Term Borrowings
Other loans and advances
Short term loan From Bank	0.000	90.000
Buyer's credit	15.104	17.552
Total	15.104	107.552

CHANGE OF ADDRESS

The registered office of the company has been shifted from 4^th Floor, Vijaya Building, Cannaught Place, New Delhi – 110001, India to the present address w.e.f. 04.10.2011.

BACKGROUND

The Company was incorporated on 1^st August 2006 in India as a private limited company. The primary activities of the Company include:

i) sales and marketing of NEC IT products and solutions in India.

ii) assembly, development, integration of communication / network products and solutions and providing related services.

iii) rendering marketing services to its holding company and other group companies, trading and providing installation, commissioning, integration etc. and other services related to the telecommunication sector to customers in India.

FIXED ASSETS:

· Leasehold Improvements

Office Equipments

Furniture and Fixtures

Computers

Test Equipments

Vehicles

PRESS RELEASES:

NEC INDIA LAUNCHES LED MOBILE PROFESSIONAL PROJECTOR

27 September, 2012

NEC India Private Limited, a leading display, network and IT solutions provider, launched its latest L51W LED professional mobile projector during its two-city Display Solutions Technology seminar held in Mumbai and Bangalore this week.

The LED professional mobile projector is a compact solution that offers to run presentations and slide shows wirelessly from a smart phone, tablet or PC. The event also witnessed the launch of commercial-grade touch-integrated V Series large-screen displays for interactive digital signage.

On the occasion, Abhilesh Guleria, Head, Multimedia Product Solutions and IT Platform at NEC India, elaborated, “It is our constant endeavor to empower our partners and customers with latest innovative products and solutions to enable them to enjoy the productivity benefits of interactivity, mobility and visualization. Our technology seminar and showcase event series is part of our strategic focus that present an ideal opportunity for our partners, customers and prospects to learn about new NEC products and services as well as garner trends from experts in the industry.”

The NEC L51W LED professional portable projector uses innovative LED technology in an extremely compact and lightweight format and is an ideal solution for mobile and corporate applications as well as cross-use (private/professional) and is the latest addition to NEC’s Office Cool portfolio and makes a perfect upgrade for customers wishing to also present wireless from their portable devices. This makes NEC’s mobile projector ideal for carrying to business presentations and meetings, whilst its stylish exterior ensures a seamless fit into any modern office.

With a brightness of 500 ANSI lumens and contrast ratio 4000:1, the WXGA (1280x800) resolution LED projector delivers a bright and sharp image in small- and mid-sized meeting rooms. The wide-screen format provides extra space in presentations and allows displaying video content in its native aspect ratio, without loss of quality.

Weighing 1.2kg and measuring just 226mm by 174mm and 43mm deep, the L51W projector is light and compact for mobile business scenarios. As well as being easy to transport, the L51W also ensures ease of use at the set-up stage through features including a remote control, automatic vertical keystone correction, auto input detection and wall color correction.

In line with NEC’s Green Vision campaign, the use of LED technology enables energy efficient features including fast start-up and shut-down with direct power off, an Off-Timer and around 20,000 hours of light source life time. Furthermore, the L51W offers minimized power usage for energy and cost savings, drawing just 105W in Normal mode and as little as 0.5W in Power Savings mode.

The Touch-Integrated V Series, 46-inch V462-TM and 65-inch V651-TM commercial-grade displays deliver superior touch screen capabilities in education, corporate, retail and restaurant environments and include 4-camera optical-imaging technology supporting up to six simultaneous touches; double-sided, anti-reflective glass coating that protects the panel, prevents mirrored imaging and allows for higher brightness transmittance; built-in expansion slot allows for seamless integration of OPS devices or accessories; built-in, low-profile 10W speakers that enhance the experience with superior sound.

NEC products are specifically designed and developed after a comprehensive analysis of consumer needs. NEC's expert solution sales team also demonstrated its ability to collaborate on custom installations that create a wow factor in any facility.

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.61.98
UK Pound	1	Rs.101.49
Euro	1	Rs.84.79

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		32

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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