MIRA INFORM REPORT

Report Date :

16.01.2013

IDENTIFICATION DETAILS

Name :	HONDA CARS INDIA LIMITED (w.e.f. 06.09.2012)
Formerly Known As :	HONDA SIEL CARS INDIA LIMITED
Registered Office :	Crowne Plaza Today New Delhi Okhla, Plot no. 1, Community Centre, Okhla Phase – I, New Delhi- 110020, Delhi
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.12.1995
Com. Reg. No.:	55- 203983
Capital Investment / Paid-up Capital :	Rs. 5699.738 Millions
CIN No.: [Company Identification No.]	U15114DL1995PLC203983
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Motors Cars.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 52000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘Honda Motor Company Limited, Japan’. It is a well- established and reputed company having a fine track record. There appears some dip in the sales turnover of the company during 2012 and it has incurred loss from its operation. However, financial position of the company appears to be sound and healthy. Directors are well- experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active. Payment terms are regular and as per commitment. In view of strong holding, the company can be considered good for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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	ICRA
Rating	LAA +
Rating Explanation	High degree of safety and very low credit risk.
Date	July 2010

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 :	Crowne Plaza Today New Delhi Okhla, Plot no. 1, Community Centre, Okhla Phase – I, New Delhi- 110020, Delhi, India
Tel. No.:	Not Available
Mobile No.:	91-11-41680694
Fax No.:	91-11-41680696
E-Mail :	apsingh@hondacarindia.com
Website :	http://www.hondacarindia.com
Factory :	Plot No. A-1, Sector 40/ 41, Surajpur-Kasna Road, Greater Noida Industrial Development Area, Distt. Gautam Budh Nagar- 201 306, Uttar Pradesh, India
Tel. No.:	91-120 - 234 1313/ 1321/ 1327/ 1801/ 1806/ 1802
Fax No.:	91-120 – 2341261/ 300
Zonal Mumbai Office :	D-126, TTC Industrial Area, MIDC Shiravane, Nerul, Thane-Belapur Road, Navi Mumbai- 400706, Maharashtra, India
Tel. No.:	91-22-67895000/ 5001/ 5002/ 5003
Zonal Chennai Office :	Old No. 26/New No. 46, Opp. ICICI Bank, Ambattur Industrial Estate, Ambattur – 600058, Tamilnadu, India
Tel. No.:	91-44-42083774/75/76/78

DIRECTORS

As on 31.08.2012

Name :

Hironori Kanayama

Designation :

Nominee director

Address :

House No. C- 586, First Floor, Defence Colony, New Delhi- 110065, Delhi, India

Date of Birth/Age :

07.12.1953

Date of Appointment :

31.08.2012

DIN No.:

05235686

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	U35912HR2001PTC034649	HONDA MOTORCYCLE AND SCOOTER INDIA PVT LTD	Director	31/08/2012	01/04/2012	-	Active	NO
2	L40103DL2004PLC203950	HONDA SIEL POWER PRODUCTS LIMITED	Director	31/08/2012	01/04/2012	-	Active	NO
3	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Director	31/08/2012	01/04/2012	-	Active	NO
4	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	31/08/2012	01/04/2012	-	Active	NO

Name :

Haruhito Murai

Designation :

Nominee director

Address :

House No. E- 123, The Icon, DLF City Phase- V, Gurgaon- 122009, Haryana, India

Date of Birth/Age :

06.07.1955

Date of Appointment :

19.08.2010

DIN No.:

03022453

Name :

Raman Kumar Sharma

Designation :

Nominee director

Address :

House No. 70, Sector- 9, Faridabad- 121006, Haryana, India

Date of Birth/Age :

12.01.1956

Date of Appointment :

08.09.2007

DIN No.:

01381382

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	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	08/09/2007	01/04/2007	Active	NO
2	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Director	19/08/2010	01/04/2010	Active	NO

Name :

Shigeru Yamazaki

Designation :

Nominee director

Address :

House No. D- 30, First Floor, Pamposh Enclave, Greater Kailash- I, New Delhi- 110048, Delhi, India

Date of Birth/Age :

07.01.1958

Date of Appointment :

31.08.2012

DIN No.:

05237170

Name :

Jiro Morisawa

Designation :

Additional director

Address :

2199- 14 Koda, Kochi Shi, Kochi ken- 7808040

Date of Birth/Age :

24.02.1967

Date of Appointment :

10.08.2011

DIN No.:

03493736

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	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Director	10/08/2011	01/04/2011	Active	NO
2	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	10/08/2011	01/04/2011	Active	NO

Name :

Toshio Sugiyama

Designation :

Additional director

Address :

Syakuji 8- 21- 5, Nerima, Tokyo

Date of Birth/Age :

12.03.1955

Date of Appointment :

10.08.2011

DIN No.:

03504548

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	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Managing director	01/04/2012	01/04/2011	Active	NO
2	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	10/08/2011	01/04/2011	Active	NO

Name :

Koichiro Kageta

Designation :

Additional director

Address :

5- 5- 25, Higashi Cho, Nishitokyo Shi, Tokyo

Date of Birth/Age :

05.08.1963

Date of Appointment :

10.08.2011

DIN No.:

03493628

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	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	10/08/2011	01/04/2011	Active	NO
2	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Whole-time director	10/08/2011	01/04/2011	Active	NO

KEY EXECUTIVES

Name :	Arun Pratap Singh
Designation :	Secretary
Address :	614, Mahagun Maple, Sector- 50, Noida- 201301, Utar Pradesh, India
Date of Birth/Age :	01.02.1972
Date of Appointment :	20.08.2007
PAN No.:	ANNPS4540D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.08.2012

Names of Shareholders	No. of Shares
Honda Motors Company Limited, Japan	569973747
Honda Motor Company Limited, Japan Jointly with Yamazaki Shigeru	01
Honda Motor Company Limited, Japan Jointly with Murai Haruhito	01
Honda Motor Company Limited, Japan Jointly with Morisawa Jiro	01
Honda Motor Company Limited, Japan Jointly with Kanayama Hironori	01
Honda Motor Company Limited, Japan Jointly with Kageta Koichiro	01
Honda Motor Company Limited, Japan Jointly with Sugiyama Toshio	01
Total	569973753

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2012

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 Motors Cars

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Cars	Nos	100,000	65,550

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Bank of Tokyo Mitsubishi UFJ Limited, 3, Jeevan Vihar Building, Parliament Street, New Delhi- 110001, Delhi, India
• Citi Bank N.A., 5^th Floor, DLF Centre, Parliament Street, New Delhi- 110001, Delhi, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Secured Borrowings	354.100	0.000
Other external commercial borrowings secured	-----	1063.880
Working Capital loans banks secured	-----	4069.050
Total	354.100	5132.930
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long- term
Term Loans	2533.800	0.000
Short- term
Term Loans	3498.300	0.000
Rupee term loans banks unsecured	-----	5882.328
Rupee term loans others unsecured	-----	890.400
Total	6032.100	6772.728

Banking Relations :	------
Auditors :
Name :	A. F. Ferguson and Company Chartered Accountants
Address :	9, Scindia House, Kasturba Gandhi Marg, New Delhi – 110001, India
Tel. No.:	AABFA5846M
Holding Company:	Honda Motor Company Limited, Japan
Joint Venture :	Usha International Limited (CIN No : U74210DL1935PLC007123) Global Auto Parts Alliance India Private Limited (CIN No : U29219DL2006PTC155954) Rajasthan Prime Steel Processing Center Private Limited (CIN No : U05004DL2007PTC169044) Bestex MM India Private Limited (CIN No : U35914DL2006PTC150369)
Fellow Subsidiaries :	American Honda Motor Company, Inc., United State Asian Honda Motor Company Limited, Thailand Honda Access Asia and Oceania Company Limited, Thailand Honda Autoparts Manufacturing (M) Sdn. Bhd., Malaysia Honda Automobile (Thailand) Company Limited, Thailand Honda Cars Philippines, Inc., Philippines Honda Engineering Asian Company Limited, Thailand Honda Express Logistics India Private Limited, India (CIN No : U34300DL2005PTC136703) Honda Kaihatsu Company Limited, Japan Honda Malaysia Sdn. Bhd., Malaysia Honda Motor China Company Limited, China Honda Motor India Private Limited, India (CIN No : U34102UP2006FTC032370) Honda Motorcycle and Scooter India Private Limited, India (CIN No : U35912HR2001PTC034649) Honda Parts Manufacturing Corporation, Indonesia Honda R and D Asia Pacific Company Limited, Thailand Honda R and D Company Limited, Japan Honda R and D (India) Private Limited, India (CIN No :U51202HR2003PTC035129) Honda Siel Power Products Limited, India (CIN No : L40103DL2004PLC203950) Honda Trading (Asia) Company Limited {formerly known as Honda Trading (Thailand) Company Limited.} Honda Trading China Company Limited, China Honda Trading Corporation India Private Limited, India (CIN No : U51909DL2005PTC135750) Honda Trading Corporation, Japan Honda Trading Europe Limited, Italy Honda Trading Philippines Ecozone Corporation, Philippines Honda Trading (South China) Company Limited, China PT. Honda Prospect Motor, Indonesia PT. Honda Precision Parts Manufacturing, Indonesia Wuhan Honda Trading Company Limited, China Yachiyo India Manufacturing Private Limited, India (CIN No : U34300RJ2008FTC026306) Yutaka Autoparts India Private Limited, India (CIN No : U35923DL2007FTC160180)

CAPITAL STRUCTURE

As on 30.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000000	Equity Shares	Rs.10/- each	Rs. 10000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
569973753	Equity Shares	Rs.10/- each	Rs. 5699.738 Millions

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		5699.700	3600.000	3600.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7308.300	3452.761	5581.149
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13008.000	7052.761	9181.149
LOAN FUNDS
1] Secured Loans		354.100	5132.930	3346.027
2] Unsecured Loans		6032.100	6772.728	2742.212
TOTAL BORROWING		6386.200	11905.658	6088.239
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		19394.200	18958.419	15269.388
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16639.600	9665.159	12198.948
Capital work-in-progress		602.300	5632.840	1611.623
INVESTMENT		117.900	230.599	256.437
DEFERRED TAX ASSETS		0.000	0.000	1332.970
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5249.300	6948.365	5167.701
	Sundry Debtors	657.800	2935.144	540.620
	Cash & Bank Balances	3279.900	204.311	387.651
	Other Current Assets	240.600	0.000	0.000
	Loans & Advances	3143.500	2851.055	2922.772
Total Current Assets		12571.100	12938.875	9018.744
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8514.100	9303.381	8991.419
	Other Current Liabilities	1906.300	46.279	18.773
	Provisions	116.300	159.394	139.142
Total Current Liabilities		10536.700	9509.054	9149.334
Net Current Assets		2034.400	3429.821	(130.590)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		19394.200	18958.419	15269.388

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	31847.200	39368.514	40811.068
		Other Income	1254.700	872.753	1233.271
		TOTAL	33101.900	40241.267	42044.339
Less	EXPENSES
		Manufacturing and other expenses	38499.000	38091.418	39381.008
		TOTAL	38499.000	38091.418	39381.008
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(5397.100)	2149.849	2663.331
Less	FINANCIAL EXPENSES		843.100	216.678	181.045
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(6240.200)	1933.171	2482.286
Less/ Add	DEPRECIATION/ AMORTISATION		2226.600	2728.589	2904.670
	PROFIT/(LOSS) BEFORE TAX/ EXCEPTIONAL ITEMS		(8466.800)	-----	-----
Add	EXCEPTIONAL ITEMS		2422.000	-----	-----
	PROFIT/(LOSS) BEFORE TAX		(6044.800)	(795.418)	(422.384)
Less	TAX		0.000	1332.970	(69.226)
	PROFIT AFTER TAX		(6044.800)	(2128.388)	(353.158)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3452.800	5581.149	5934.307
	BALANCE CARRIED TO THE B/S		(2592.00)	3452.761	5581.149
	Earnings Per Share (Rs.)		10.61	------	-----

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(18.26)	(5.29)	(0.84)
Net Profit Margin (PBT/Sales)	(%)	(18.98)	(2.02)	(1.03)
Return on Total Assets (PBT/Total Assets}	(%)	(20.69)	(3.52)	(1.99)
Return on Investment (ROI) (PBT/Networth)		(0.46)	(0.11)	(0.05)
Debt Equity Ratio (Total Liability/Networth)		1.30	3.04	1.66
Current Ratio (Current Asset/Current Liability)		1.19	1.36	0.99

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	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

NEWS

Honda Siel Cars India Is Now Honda Cars India Limited

Sep 12 2012

After the disinvestment of the JV between Honda Siel Cars India (HSCI) and Usha International Limited (UIL) last month, Honda has announced a name change to Honda Cars India Limited (HCIL) with immediate effect. All the Formalities have been completed and a fresh Certificate of Incorporation has been issued by the Registrar of Companies, NCT of Delhi and Haryana. Honda Cars India Limited will now be a 100% Honda subsidiary in India.

Commenting on the development, Mr. Hironori Kanayama, President and CEO, Honda Cars India Limited, said,” We are committed to the Indian market and will continue to delight our customers with latest products from Honda, which will enrich their lives and enhance their lifestyles. Honda’s quality, superior technology and overall ownership experience is what has endeared this brand to our customers since inception and same philosophy will drive us in future.”

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U15114DL1995PLC203983
Name of the company	HONDA SIEL CARS INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	3 & 4/48, Enkay House, 2^ND Floor, Malcha Marg Shopping Complex, Chanakyapuri, New Delhi- 110021, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10111742
Type of charge	Book debts Stock- in –trade and Other Movable Assets
Particular of charge holder	Mizuho Corporate Bank Limited, 4^th Floor, East Tower, Sood Tower, 25, Barakhamba Road, New Delhi- 110001, Delhi, India
Nature of instrument creating charge	Supplemental Agreement for Hypothecation of Stock in trade, Book debts and other movable assets for increasing the overall limit
Date of instrument Creating the charge	18.03.2011
Amount secured by the charge	Rs. 2000.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Sanction Letter No. BPD/ ND/ 248/ 10-11 and Supplemental Agreement of Loan for increase in the overall limit for Secured Advances dated 18.03.2011 Terms of Repayment As per Sanction Letter No. BPD/ ND/ 248/ 10-11 and Supplemental Agreement of Loan for increase in the overall limit for Secured Advances dated 18.03.2011 Margin As per Sanction Letter No. BPD/ ND/ 248/ 10-11 and Supplemental Agreement of Loan for increase in the overall limit for Secured Advances dated 18.03.2011 Extent and Operation of the charge Pari- Passu Charge
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation by Way of First Charge on Pari Passu basis on all present and future goods, Book debts and other movable assets of the company.
Particulars of the present modification	Overall Limit for credit facilities sanctioned to the company enhanced from Rs. 500.000 millions to Rs. 2000.000 millions and Accordingly charge of Mizuho Corporate Bank Limited. By way of hypothecation on goods, Book debts and other movable assets of the company stands enhanced to Rs. 2000.000 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. 54.64
UK Pound	1	Rs. 88.17
Euro	1	Rs. 73.13

INFORMATION DETAILS

Report Prepared by :

RJT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	7
--RESERVES	1~10	6
--CREDIT LINES	1~10	8
--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		55

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

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.