MIRA INFORM REPORT

Report Date :

12.01.2013

IDENTIFICATION DETAILS

Name :	HALBIT AVIONICS PRIVATE LIMITED
Registered Office :	15/1, Cubbon Road, Bangalore – 560001, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.05.2007
Com. Reg. No.:	08-042680
Capital Investment / Paid-up Capital :	Rs. 76.500 Millions
CIN No.: [Company Identification No.]	U35303KA2007PTC042680
IEC No.:	0707020107
PAN No.: [Permanent Account No.]	AABCH8623G
Legal Form :	Private Limited Liability Company
Line of Business :	Designing, Development, Marketing and Support for high tech avionics products, simulators and training systems and also provides integrated logistics support.
No. of Employees :	51 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 240000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a joint venture between Hindustan Aeronautics Limited (50%), Elbit Systems Limited (26%), Merlinhawk Associates Private Limited (24%). It is an established company having a moderate track record. There appears some accumulated losses recorded by the company. However, the company gets good financial support from its holding companies. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. In view of strong holdings, the company can be considered for business dealings 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : (CRISIL) BB+
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligations.
Date	October 15, 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 (GENERAL DETAILS)

Name :	Mr. Ravi Kulthemutt
Designation :	General Manager – Finance
Contact No.:	91-9741105745
Date :	11.01.2013

LOCATIONS

Registered Office :	15/1, Cubbon Road, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-22320934
Fax No.:	91-80-22320934
E-Mail :	b.r.chandran@halbit.co.in
Website :	www.halbit.co.in
Head Office/ Factory :	HAL Airport Departure Lane, Hal Estate, Vimanapura PO, Bangalore – 560017, Karnataka, India
Tel. No.:	91-80-40491000
Fax No.:	91-80-41605000/ 40491040
E-Mail :	contact@halbit.co.in
Area :	6800 Sq. ft.
Location ;	Rented

DIRECTORS

AS ON 27.09.2012

Name :

Yoram Shmuely

Designation :

Director

Address :

6 Nurit Street, Vardia, Haifa 34654, Israel

Date of Birth/Age :

10.07.1960

Date of Appointment :

01.05.2007

DIN No.:

00935582

Name :

Mr. Joseph Gaspar

Designation :

Director

Address :

41, Metudela St, Tel Aviv, 69548, Israel

Date of Birth/Age :

17.05.1948

Date of Appointment :

01.05.2007

DIN No.:

01457661

Name :

Rishikesha Thiruvenkata Krishnan

Designation :

Director

Address :

Faculty Qtrs, 117, 11MB Campus, Bannerghatta Road, Bangalore - 560076, Karnataka, India

Date of Birth/Age :

06.02.1964

Date of Appointment :

22.01.2008

DIN No.:

00064067

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	L30007GA1993PLC001341	SMARTLINK NETWORK SYSTEMS LIMITED.	Director	22/12/2005	22/12/2005	28/07/2012	Active	NO
2	U93090TN1996PLC034615	SUNDARAM ASSET MANAGEMENT COMPANY LIMITED	Director	19/06/2008	20/09/2007	-	Active	NO
3	U35303KA2007PTC042680	HALBIT AVIONICS PRIVATE LIMITED	Director	22/01/2008	22/01/2008	-	Active	NO
4	U93090MH2009PTC191515	MILESTONE RELIGARE INVESTMENT ADVISORS PRIVATE LIMITED	Director	20/05/2010	08/04/2009	-	Active	NO

Name :

Ponnuswamy Soundararajan

Designation :

Nominee director

Address :

A-101, Everest Appartments, 8^th Main Road, Malleshwaram, Bangalore – 560003, Karnataka, India

Date of Birth/Age :

11.05.1953

Date of Appointment :

14.08.2009

DIN No.:

02639746

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	U35303KA2005PTC037539	SNECMA HAL AEROSPACE PRIVATE LIMITED	Director	01/04/2009	01/04/2009	21/10/2011	Active	NO
2	U35301KA1963GOI001622	HINDUSTAN AERONAUTICS LIMITED	Managing director	17/09/2010	01/08/2009	-	Active	NO
3	U72200KA1993PLC013983	BAEHAL SOFTWARE LIMITED	Director	06/08/2010	14/08/2009	30/09/2011	Active	NO
4	U35303KA2007PTC042680	HALBIT AVIONICS PRIVATE LIMITED	Nominee director	14/08/2009	14/08/2009	-	Active	NO
5	U74999KA2008PTC044972	HATSOFF HELICOPTER TRAINING PRIVATE LIMITED	Nominee director	07/07/2010	07/07/2010	-	Active	NO
6	U29253KA2010PTC054509	INTERNATIONAL AEROSPACE MANUFACTURING PRIVATE LIMITED	Director	21/12/2011	16/07/2010	21/08/2012	Active	NO
7	U29199KA2010PLC056091	MULTIROLE TRANSPORT AIRCRAFT LIMITED	Director	01/12/2010	01/12/2010	30/09/2011	Active	NO
8	U93000KA2008PLC046588	TATA HAL TECHNOLOGIES LIMITED	Director	08/06/2011	08/06/2011	21/08/2012	Active	NO
9	U29200KA2007PLC043691	INFOTECH HAL LIMITED	Nominee director	01/04/2012	21/07/2011	-	Active	NO

Name :

Shlomo Alkaher

Designation :

Alternate director

Address :

No. 16, Tchernihovski Street, Haifa, 35703, Israel

Date of Birth/Age :

10.03.1952

Date of Appointment :

03.02.2011

DIN No.:

03460654

Name :

Mr. Krishnaswamy Naresh Babu

Designation :

Nominee director

Address :

No.1989, 3^RD Cross, 20th Main, JP Nagar, 2^nd Phase, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

29.03.1955

Date of Appointment :

03.10.2011

DIN No.:

03642273

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	U35301KA1963GOI001622	HINDUSTAN AERONAUTICS LIMITED	Managing director	05/09/2011	05/09/2011	-	Active	NO
2	U35303KA2005PTC037539	SNECMA HAL AEROSPACE PRIVATE LIMITED	Director	30/09/2011	30/09/2011	-	Active	NO
3	U29253KA2010PTC054509	INTERNATIONAL AEROSPACE MANUFACTURING PRIVATE LIMITED	Director	26/06/2012	30/09/2011	21/08/2012	Active	NO
4	U35303KA2007PTC042680	HALBIT AVIONICS PRIVATE LIMITED	Nominee director	03/10/2011	03/10/2011	-	Active	NO
5	U72200KA1993PLC013983	BAEHAL SOFTWARE LIMITED	Director	03/08/2012	03/11/2011	-	Active	NO

Name :

Mr. Ran Kril

Designation :

Alternate director

Address :

Rimon 22, Nofit 36001 , Israel

Date of Birth/Age :

17.09.1970

Date of Appointment :

03.02.2012

DIN No.:

02462052

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	Company/ LLP Status	Defaulting status
1	U35303KA2007PTC042680	HALBIT AVIONICS PRIVATE LIMITED	Alternate director	03/02/2012	11/09/2008	Active	NO

KEY EXECUTIVES

Name :	Mr. Ravi Kulthemutt
Designation :	General Manager – Finance
Name :	Mr. Balakrishnan Ramesh Chandran
Designation :	Manager
Address :	Wing No. 47, Flat No. 505, Elite Promenade, 18^th Main, JP Nagar, 7^th Phase, Bangalore – 560078, Karnataka, India
Date of Birth/Age :	27.03.1954
Date of Appointment :	19.10.2011
PAN No.:	AABPC9773D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2012

Names of Shareholders	No. of Shares
Hindustan Aeronautics Limited, India	382500
ELBIT Systems Limited, Israel	198900
Merlinhawk Associates Private Limited, India	183600
Total	765000

AS ON 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Government Companies	50.00
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	26.00
Bodies corporate	24.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Flight Training and Simulator and Avionics Products.
Imports :
Products :	Visuals (Projectors) Control Loading Systems
Countries :	Ø Belgium Ø Israel Ø Netherlands
Terms :
Selling :	Cash and Credit (30 Days)
Purchasing :	Cash and Credit (30 Days)

GENERAL INFORMATION

Customers :	Others (HAL/ Indian Air Force)
No. of Employees :	51 (Approximately)
Bankers :	Ø ICICI Bank Limited, #1, Commissariat Road, Bangalore – 560025, Karnataka, India Ø ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India
Facilities :	Non-Fund based – Rs. 350.000 Millions

Banking Relations :	--
Auditors :
Name :	SR Batliboi and Associates Chartered Accountants
Address :	12 and 13^th Floor, UB City, Canberra Block, No. 24, Vitthal Mallya Road, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-67275000/ 40275000
Fax No.:	91-80-22106000
E-Mail :	Gangadharan.ts@in.ey.com
Income-tax PAN of auditor or auditor's firm :	AABFS3421N
Joint Venture Partners :	Ø Hindustan Aeronautics Limited [U35301KA1963GOI001622] Ø ELBIT Systems Limited Ø Merlinhawk Associates Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 100/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
765000	Equity Shares	Rs. 100/- each	Rs. 76.500 Millions

Terms/ rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 100 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders.

Details of shareholders holding more than 5% shares in the company

Name of shareholders	31.03.2012
	Number	% of holding in the class
Hindustan Aeronautics Limited	382500	50.00
ELBIT Systems Limited	198900	26.00
Merlinhawk Associates Private Limited	183600	24.00

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		76.500	76.500	76.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(16.528)	(19.449)	(1.297)
NETWORTH		59.972	57.051	75.203
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		59.972	57.051	75.203
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.023	18.996	23.307
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.477
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.081	3.821	21.129
	Sundry Debtors	40.874	28.610	4.913
	Cash & Bank Balances	70.485	0.152	41.061
	Other Current Assets	23.035	13.424	0.000
	Loans & Advances	12.599	8.247	7.138
Total Current Assets		152.074	54.254	74.241
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	68.684	6.146	10.460
	Other Current Liabilities	32.678	4.506	7.042
	Provisions	5.763	5.547	5.320
Total Current Liabilities		107.125	16.199	22.822
Net Current Assets		44.949	38.055	51.419
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		59.972	57.051	75.203

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	147.134	66.260
		Other Income	3.547	3.644
		TOTAL (A)	150.681	69.904	70.519
Less	EXPENSES
		Cost of raw material and components consumed	97.181	7.940
		(Increase)/ Decrease in inventories	(1.260)	17.308
		Employee benefit Expenses	29.903	30.915
		Other Expenses	18.668	24.276
		TOTAL (B)	144.492	80.439	68.699
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.189	(10.535)
Less	FINANCIAL EXPENSES (D)		0.784	0.121
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.405	(10.656)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.295	5.745
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1.110	(16.401)	1.820
Less	TAX (H)		(1.812)	1.751	0.310
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		2.922	(18.152)	1.510
	EARNINGS IN FOREIGN CURRENCY
		Contract Revenue	10.612	31.088	46.493
	IMPORTS
		Materials and Components	93.586	2.154	12.593
	Earnings/ (Loss) Per Share (Rs.)
	Basic including extraordinary items		3.82	(23.73)	1.97
	Basic excluding extraordinary items		1.60	(22.24)	N.A.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.94	(25.97)	2.14
Net Profit Margin (PBT/Sales)	(%)	0.75	(24.75)	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	0.66	(22.39)	1.87
Return on Investment (ROI) (PBT/Networth)		0.02	(0.29)	0.02
Debt Equity Ratio (Total Liability/Networth)		1.79	0.28	0.30
Current Ratio (Current Asset/Current Liability)		1.42	3.35	3.25

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	Yes
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 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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	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

CORPORATE INFORMATION:

Subject was incorporated on May 1, 2007 under the provisions of Companies Act, 1956 as a Private Limited Company. The Company is a Joint Venture between Hindustan Aeronautics Limited, Elbit Systems Limited and Merlinhawk Associates Private Limited. The Company is engaged in the business of design, development, marketing and support (operations and maintenance) for high tech avionics products, simulators and training systems. The Company also provides integrated logistic support and maintenance services of products to its customers.

COMPANY PERFORMANCE:

The company has recorded good performance this year. There has been a surge in top line growth of the company. Turnover has increased nearly by 122.06% on YoY basis which is mainly because the company has entered into Avionics Business apart from the regular on-going Simulator Business.

The company has achieved a Turnover (Contract Revenue) of Rs. 147.130 Millions as against Rs. 66.260 Millions in the previous year, out of which Rs. 52.110 Millions is from Avionics. Further, the company has earned a net profit of Rs. 2.920 Millions for FY11-12.

During the year, Company had requested HAL for additional space for setting up a lab for testing the equipments pertaining to Avionics Business and the same has been allotted.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U35303KA2007PTC042680
Name of the company	HALBIT AVIONICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	15/1, Cubbon Road, Bangalore – 560001, Karnataka, India Email: b.r.chandran@halbit.co.in
This form is for	Modification of charge
Charge identification number of the modified	10145606
Type of charge	Book debts Others (Current Assets)
Particular of charge holder	ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India Email: shanthi.venkatesan@icicibank.com CIN No.: L65190GJ1994PLC021012
Nature of description of the instrument creating or modifying the charge	Supplemental Deed of Hypothecation dated 12th September, 2012
Date of instrument Creating the charge	12.09.2012
Amount secured by the charge	Rs. 350.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Not applicable since facility is Non Fund Based Terms of Repayment Not Applicable since the facility is non fund based working capital. Margin 100% for Guarantees covering disputed liabilities 10% for performance Guarantees Extent and Operation of the charge Exclusive Charge on the company's stocks of raw materials, goods-in-process, semi-finished and finished goods, consumable stores and spares and such other movables, including book debts, bills, whether documentary or clean, outstanding monies, receivables both present and future.
Short particulars of the property charged	Stocks of raw materials, semi-finished and finished goods, consumable stores, spares and such other movables including book debts, bills stored in HAL Estate, HAL Departure Lane, Bangalore or wherever else. Supplemental Deed of Hypothecation.
Date of Modification	14.02.2012
Particulars of the present modification	Existing non fund based working capital limit of Rs.250.000 million has been enhanced to Rs.350 million with an addition of Rs.100.000 million.

TRADE REFERENCES:

Ø Hindustan Aeronautics Limited – MD, Bangalore Complex

CONTINGENT LIABILITIES NOT PROVIDED FOR

Guarantee for contracts/ bids – Rs. 222.883 Millions

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 54.54
UK Pound	1	Rs. 88.05
Euro	1	Rs. 72.29

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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		36

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.