MIRA INFORM REPORT

Report Date :

01.02.2013

IDENTIFICATION DETAILS

Name :	VALEO INDIA PRIVATE LIMITED (w.e.f. 12.11.2010)
Formerly Known As :	VALEO ENGINEERING CENTER (INDIA) PRIVATE LIMITED
Registered Office :	Block A, 4th Floor, Tecci Park, No. 285 Rajiv Gandhi Salai (OMR Road), Sholinganallur, Chennai - 600119, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.12.2005
Com. Reg. No.:	18-081914
Capital Investment / Paid-up Capital :	Rs.36.600 Millions
CIN No.: [Company Identification No.]	U29130TN2005PTC081914
TAN No.: [Tax Deduction & Collection Account No.]	CHEC11087G
PAN No.: [Permanent Account No.]	AACCV1939N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Alternators and Starter Motors.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 1000000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘Valeo Bayen, France’. It is an established company having a moderate track record. The management has not filed its financials with the government department for the year 2012. As per previous year’s record, the company has incurred loss from its operations. However, trade relations are reported to be fair. Business is active. Payment terms are unknown. The company can be considered for business dealing with some caution.

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 :	Block A, 4th Floor, Tecci Park, No. 285 Rajiv Gandhi Salai (OMR Road), Sholinganallur, Chennai - 600119, Tamilnadu, India
Tel. No.:	91-44-22505000 / 66715500
Fax No.:	91-44-22505011
E-Mail :	Meenakshisundaram.SUBRA MANIAN@valeo.com
Website :	http://www.valeo.com

DIRECTORS

As on 30.12.2011

Name :

Mr. Dhamodharan Raju

Designation :

Managing director

Address :

100, J Gardens Panaiyur, Chennai – 600119, Tamilnadu, India

Date of Birth/Age :

19.05.1970

Qualification :

B.E , M.B.A

Experience :

20 Years

Date of Appointment :

23.09.2009

DIN No.:

02401889

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	U31908TN2007PTC081836	VALEO ENGINE AND ELECTRICAL SYSTEMS INDIA PRIVATE LIMITED	Director	27-03-09	27-03-09	-	Amalgamated	NO
2	U29130TN2005PTC081914	VALEO INDIA PRIVATE LIMITED	Managing director	23-09-09	27-03-09	-	Active	NO
3	U34300DL2007PTC157344	MINDA VALEO SECURITY SYSTEMS PRIVATE LIMITED	Director	30-09-10	12-11-09	-	Active	NO
4	U29130TN1997PTC037909	AMALGAMATIONS VALEO CLUTCH PRIVATE LIMITED	Director	19-11-09	19-11-09	-	Active	NO
5	U29309TN1997PLC038508	VALEO FRICTION MATERIALS INDIA LIMITED	Director	03-12-09	03-12-09	-	Active	NO
6	U51505DL2008PTC179801	VALEO LIGHTING SYSTEMS INDIA PRIVATE LIMITED	Additional director	01-02-10	01-02-10	-	Active	NO

Name :

Mr. Fabrice Leopold Garmy

Designation :

Director

Address :

15, Sparking Sand Avenue Sholinqanallur. Chennai – 600119, Tamilnadu, India

Date of Birth/Age :

18.02.1970

Date of Appointment :

30.12.2011

DIN No.:

03388381

Name :

Mr. Ramesh Nachallur Sampath

Designation :

Director

Address :

13, Sri Sathya Sai Nagar, Urapakkam Chengalput. Chennai - 603 202 Tamilnadu, India

Date of Birth/Age :

10.03.1975

Date of Appointment :

30.12.2011

DIN No.:

03369550

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	U29130TN2005PTC081914	VALEO INDIA PRIVATE LIMITED	Director	30-12-11	17-02-11	-	Active	NO
2	U29309TN1997PLC038508	VALEO FRICTION MATERIALS INDIA LIMITED	Alternate director	26-12-11	26-12-11	26-12-11	Active	NO

Name :

Mr. Sriram Gopalakrishnan

Designation :

Director

Address :

60, Block 2, Ramanlyum Sanjlvlni Apartments, 72/1, L B Road. Chennai - 600 041, Tamilnadu, India

Date of Birth/Age :

10.01.1964

Qualification :

B.E,M.B.A

Experience :

25 Years

Date of Appointment :

30.12.2011

DIN No.:

02492247

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	U35911TN1997PTC037782	VISTEON AUTOMOTIVE SYSTEMS INDIA PRIVATE LIMITED	Alternate director	27-03-08	27-03-08	17-04-09	Active	NO
2	U29130TN2005PTC081914	VALEO INDIA PRIVATE LIMITED	Director	30-12-11	17-02-11	-	Active	NO

Name :

Mr. Claude Paul Marie Gislain Leichle

Designation :

Director

Address :

04. Rue De L" Ariego. Roquettes, 31120, France

Date of Birth/Age :

13.12.1948

Date of Appointment :

30.12.2011

DIN No.:

02294104

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	U51505DL2008PTC179801	VALEO LIGHTING SYSTEMS INDIA PRIVATE LIMITED	Additional director	28-08-08	28-08-08	09-01-09	Active	NO
2	U31908TN2007PTC081836	VALEO ENGINE AND ELECTRICAL SYSTEMS INDIA PRIVATE LIMITED	Director	09-12-08	09-12-08	-	Amalgamated	NO
3	U29130TN2005PTC081914	VALEO INDIA PRIVATE LIMITED	Director	30-12-11	17-02-11	-	Active	NO

KEY EXECUTIVES

Name :	Mrs. S Meenakshi Sundaram
Designation :	Secretary
Address :	No.4.11 Main Road. Nggo Nagar, Tirjsinravur. R.S., Chennai – 602024, Tamilnadu, India
Date of Birth/Age :	20.06.1971
Date of Appointment :	18.09.2009
Pan No.:	AISPS5179E
Name :	Mr. Satish
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.12.2011

Names of Shareholders	No. of Shares
Valeo Bayen S.A.S, France	3257400
Valeo Finance S.A.S, France	402600
Total	3660000

As on 26.03.2012

Names of Allottees	No. of Shares Allotted
Valeo Bayen S.A.S, France	31182600
Total	31182600

As on 26.03.2012

Names of Allottees	No. of Shares Allotted
Valeo Bayen S.A.S, France	34064420
Equipment 11, France	17705
Total	34082125

As on 28.09.2012

Names of Allottees	No. of Shares Allotted
Valeo Bayen S.A.S, France	50000000
Total	50000000

As on 30.12.2011

Equity Share Break up (Percentage of Total Equity)

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Alternators and Starter Motors.

Products :

Description of product or services	ITC number of product
Starters , Alternators - Unit of Measurement	85114000

PRODUCTION STATUS (As on 31.03.2011)

Licensed Capacity

The Company is exempted from the licensing provisions of the Industries (Development and Regulation) Act, 1951 in terms of notification No.S.O.477(E) dated July 25, 1991. Prescribed memoranda, for the purpose of record, have been filed with Secretariat for Industrial Assistance (SIA, Ministry of Commerce and Industry, Government of India. The capacity indicated is as disclosed in the respective memoranda.

Particulars	Unit	Installed Capacity	Actual Production
Alternators	Nos.	900000	199134
Starter Motors	Nos.	900000	487040

*As certified by the management and have not been verified by the auditors as this is a technical

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Address :	6^th and 7^th Floor, "A" Block, Tecci Park (Module 601,701 and 702), No.4, Rajiv Gandhi Salai, Taramani, Chennai – 600113, Tamilnadu, India
PAN.:	ABSFS4151K
Ultimate Holding Company :	Valeo S.A.
Holding Company :	Valeo Bayen, France
Associate Companies :	Valeo Embrayage, CEPN, France Valeo Transmission France Auto Valeo Autosystemy SP. ZO.O, Poland Valeo Systemes Electriques, France VALEO Engine Cooling, France Valeo Otomotiv Sistemleri A.S. Valeo Transmission Funelabrada, Brazil Valeo Service, France Valeo Frizioni, Italy Valeo Thermal Systems Japan Corp Valeo Thermique Habitacle Valeo Pyeonghwa Company Limited, Taegu Valeo Management Services Valeo Sistemas Automotivos Valeo Thermique Moteur, France Valeo Interior Controls, France Valeo Security Systems, France Valeo Systemes D’essuyage, France Valeo India Private Limited Valeo Systemes Thermiques, France Valeo Engine And Electrical Systems, India Taizhou Valeo Wenling Automotive Systems, China Valeo - Pontoise, France Valeo Radar Systems, USA Valeo Schalter Und Sensoren, GmBh Valeo SiamThermal, Thailand Valeo Climate Control, Japan Amalgamations Valeo Clutch Private Limited, India Minda Valeo Security Systems Private Limited, India Valeo Friction Materials India Limited, India Valeo Equipments Electriques Moteur, France Valeo Sistemas Automotivos Limited, Brazil Valeo Sistemas Electricos, SA de CV, Mexico Valeo Electric and Electronic Systems Sp.ZO.O., Poland Valeo Electrical Systems Korea, Limited Valeo Management (Beijing) Company Limited, China Minda Industries Limited (upto May 10, 2010) Minda Investments Limited (upto May 10, 2010)
Significant Influence :	Valeo Engine and Electrical Systems India Private Limited, India Valeo Lighting Systems India Private Limited, India Priti Suri Associates Shanghai Valeo Automotive Electrical Systems Company Limited, China

CAPITAL STRUCTURE

After 30.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
184500000	Equity Shares	Rs.10/- each	Rs.1845.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
118924725	Equity Shares	Rs.10/- each	Rs.1189.247 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs.10/- each	Rs.55.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3660000	Equity Shares	Rs.10/- each	Rs.36.600 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		36.600	36.600	28.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		223.485	4.355	2.017
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		260.085	40.955	30.017
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		472.414	0.000	0.000
TOTAL BORROWING		472.414	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	1.826
TOTAL		732.499	40.955	31.843
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		575.743	21.035	10.541
Capital work-in-progress		70.142	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.756	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	397.957	0.000	0.000
	Sundry Debtors	323.736	26.958	13.760
	Cash & Bank Balances	20.086	11.129	6.549
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	280.010	19.980	9.026
Total Current Assets		1021.789	58.067	29.335
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	906.867	27.926	5.329
	Other Current Liabilities	6.162	4.567	1.254
	Provisions	22.146	6.410	1.459
Total Current Liabilities		935.175	38.903	8.033
Net Current Assets		86.614	19.164	21.302
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		732.499	40.955	31.843

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	NA	NA	NA
		Other Income
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	NA	NA
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(207.348)	18.620	5.453
Less/ Add	DEPRECIATION/ AMORTISATION		120.138	13.264	2.337
	PROFIT / (LOSS) BEFORE TAX		(327.486)	5.356	3.116
Less	TAX		0.756	3.018	1.330
	PROFIT / (LOSS) AFTER TAX		(328.242)	2.338	1.786
	EARNINGS IN FOREIGN CURRENCY
		Exports at F.O.B value	48.048	0.000	NA
		Service income	230.285	137.231	NA
	TOTAL EARNINGS		278.333	137.231	NA
	IMPORTS
		Raw materials and components	135.323	NA	NA
		Traded goods	1248.495	NA	NA
		Capital Goods	39.466	NA	NA
	TOTAL IMPORTS		1423.284	NA	NA
	Earnings / (Loss) Per Share (Rs.)		(89.68)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	(20.50)	6.77	7.81
Return on Investment (ROI) (PBT/Networth)		(1.26)	0.13	0.10
Debt Equity Ratio (Total Debt /Networth)		1.82	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.09	1.49	1.38

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	No
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

Note:

The registered office of the company has been shifted from 14A and B, Hansalaya, 15, Barakhamba Road, New Delhi – 110001, India to present address w.e.f.18.07.2011

BACKGROUND:

The Company was incorporated on December 29, 2005 in Chennai, Tamilnadu. The Company provides design and simulation services to its group companies. With effect from April 1, 2010 Valeo Engine Electrical Systems India Private Limited (‘VEESIL’ or ‘the erstwhile Company’) is amalgamated into the Company which is engaged in the business of manufacturing, assembling, sub- assembling, designing, developing, fabrication, export sales, distribution of alternators and starter motors.

OPERATIONS FOR THE YEAR

The company R and D Division expanded its Design and Engineering activities by serving to new product groups climate controls, wiper systems during the year and to lighting systems from April 2011.

The Company shifted its registered office in August 2011 from New Delhi to Chennai due to its expansion activities and administrative convenience.

The Company has been certified by DNV for ISO 9001:2008 Quality Management System Standards in June 2010 for its provision of engineering activities and it was reviewed in April 2011 during its surveillance audit The Company’s R and D Center has started steps to get itself certified under Cmmi Level 3 process.

AMALGAMATION OF VALEO ENGINE ELECTRICAL SYSTEMS INDIA PRIVATE LIMITED (‘VEESIL’) WITH THE COMPANY

Valeo Engine Electrical Systems India Private Limited (Formerly known as Valeo Minda Electrical Systems India Private Limited) (“VEESIL”) was incorporated on July 4, 2007. The Company is engaged in the business of manufacturing, assembling, sub- assembling, designing, developing, fabrication, export sales, distribution of alternators and starter motors.

The Company had entered into a Scheme of Amalgamation (‘Scheme’) with VEESIL for the amalgamation of VEESIL with the Company effective April 1, 2010 (‘Appointed Date’). The scheme was approved by the Hon’ble High Court of Judicature at Madras on November 28, 2011. The Company has filed the order approved by the Hon’ble High Court with the Registrar of Companies, Chennai on November 29, 2011 for VIPL and November 30, 2011 for VEESIL. The Roc has registered the order on December 14, 2011 (‘effective date’) and as at that date, VEESIL has been amalgamated with the Company and stands dissolved without being wound up. The scheme has accordingly been given effect to in these financial statements with retrospective effect from April 1, 2010. The date for the purpose of issue of the Company’s equity shares to the members of the transferor company is December 30, 2011 (‘Record date’).

As per the scheme, during the period between the appointed date and the Effective date, VEESIL shall be deemed to have carried on the existing business in “trust” on behalf of the Company. Further, all profits or incomes earned and expenses incurred by VEESIL during such period, shall for all purposes, be deemed to be profits or incomes or expenditure or losses of the Company.

The amalgamation has been accounted in accordance with Accounting Standard 14 – “Accounting for Amalgamations” issued by the Institute of Chartered Accountants of India, in the manner laid down in the Scheme

The net assets of VEESIL transferred as of April 1, 2010, amounted to Rs.742.050 Millions. These were transferred to and vested in the Company at the carrying values as appearing in the books of accounts. In consideration of transfer of the undertaking of VEESIL, the Company will be issuing 17,705 equity shares of the face value of Rs. 10/- each in Company for every 74,205 equity shares of the face value of Rs. 10/- (Rupees Ten only) each held in VEESIL as at the record date (“exchange ratio”). The paid up capital of VEESIL as at the record date is Rs 1,428,050,000 comprising of 142,805,000 equity shares of Rs 10/- each. Accordingly, the Company will be issuing 34,082,125 equity shares of Rs 10/- each, fully paid up to the shareholders of VEESIL and the difference of Rs 1087.229 Millions between the paid up capital of VEESIL and the paid up value of equity shares issuable will be adjusted to general reserves as per the treatment laid down in the Scheme. The total paid up capital of VEESIL as at March 31, 2011 was Rs. 1134.050 Millions and the paid up value of equity shares issuable in the exchange ratio described above aggregates to Rs. 270.532 Millions which has been disclosed under “Capital Suspense Account”. The difference between them after adjusting Rs.0.221 Million relating to depreciation of the earlier years for adoption of uniform accounting policies, aggregating to Rs 863.739 Millions has been adjusted to General reserves.

For the balance paid up capital of Rs 294.000 Millions received subsequent to the year end, the Company will be issuing paid up value of equity shares aggregating Rs 70.288 Millions in the above exchange ratio and the difference of Rs 223.711 Millions would be adjusted to General Reserves.

The shares issuable to VEESIL as at March 31, 2011 in the above exchange ratio has been considered in determination of the weighted number of equity shares for the purpose of computation of earnings per share

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks unsecured	403.737	0.000
Rupee term loans others unsecured	68.677	0.000
Total	472.414	0.000

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.53.29
UK Pound	1	Rs.84.22
Euro	1	Rs.72.23

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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
TOTAL		31

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.