MIRA INFORM REPORT

Report Date :

29.01.2013

IDENTIFICATION DETAILS

Name :	NEW HOLLAND FIAT (INDIA) PRIVATE LIMITED (w.e.f. 18.12.2008)
Formerly Known As :	FIAT INDIA PRIVATE LIMITED IND AUTO LIMITED PAL COOPER PRIVATE LIMITED
Registered Office :	303, Central Plaza, 166, CST Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	23.11.1992
Com. Reg. No.:	11-069675
Capital Investment / Paid-up Capital :	Rs. 12485.548 Millions
CIN No.: [Company Identification No.]	U29220MH1992PTC069675
PAN No.: [Permanent Account No.]	AAACI3922Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Agricultural and Construction Equipments.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 40000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘Fiat Group Automobiles S.P.A’. It is an established company having a moderate track record. There appears some accumulated losses recorded by the company. Hotheyver trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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.

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. Hotheyver, India's economic growth in 2011 slotheyd 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 slotheyd 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.

INFORMATION DENIED BY

Name :	Mr. Arvind Agarwal
Designation :	Account Manager
Contact No.:	91-120-3056455/ 6152
Date :	29.01.2013

LOCATIONS

Registered Office :	303, Central Plaza, 166, CST Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India
Tel. No.:	91-22-30007701-08
Fax No.:	91-22-30007709
E-Mail :	vineet.harlalka@cnh.com service@fiat.com arvind.agrawal@cnh.com ss.trivedy@cnh.com
Theybsite :	www.newhollandindia.co.in
Location :	Owned
Head Office (Tractor Division) :	Plot No. 09, Suite No. - 301 and 304, Copia Corporate Suite, Jasola District, Centre, New Delhi – 110 044, India
Tel No.:	91-11- 46727100
Fax No.:	91-11- 46727171
Administrative Office :	Level No. 1, Ragus Trade Centre, Bandra Kurla Complex, Mumbai-400051, Maharashtra, India
Tel. No.:	91-22-40700436
Factory 1 :	Tractor Division Plot No. 03, Udyog Kendra, Grater Noida – 201306, District Gautam Budh Nagar, Uttar Pradesh, India
Tel. No.:	91-120-3056000
Fax No.:	91-120-3056989
Factory 2 :	Parts Division Plot No. 3, Udyog Kendra, Greater Noida – 201306, District Gautam Budhagar, Uttar Pradesh, India
Tel. No.:	91-120-3056000
Fax No.:	91-120-3056949

DIRECTORS

As on: 24.02.2012

Name :	Mr. Mario Gasparri
Designation :	Managing Director
Address :	Via Giuseppe Mazzini, 14, 6900 Lugano, Switzerland
Date of Birth/Age :	01.10.1960
Date of Appointment :	10.10.2008
DIN No.:	00468272
Name :	Mr. Rakesh Malhotra
Designation :	Director
Address :	228, Bhera Enclave, Delhi - 110087, India
Date of Birth/Age :	06.04.1958
Qualification :	B.com (H), FCA
Experience :	28 Years
Date of Appointment :	25.09.2008
DIN No.:	00015911
Name :	Mr. Stefano Pampalone
Designation :	Managing Director
Address :	Istinye Hill Park, SIT 47, Parsel, CS Istinye, Sariyer IST, Turkey
Date of Birth/Age :	09.11.1967
Qualification :	MBA and Mechanical Engineer
Experience :	17 Years
Date of Appointment :	14.09.2009
DIN No.:	02784982
Name :	Mr. Stefano Reganzani
Designation :	Director
Address :	Via G. Chiabrera N 42, Conlugato, Torino, Italy
Date of Birth/Age :	31.03.1965
Date of Appointment :	25.07.2011
DIN No.:	02185388
Name :	Mr. Roberto Ciceri
Designation :	Director
Address :	Via Antonia, Giuseppe, Bertola 49, Tornio 10122, Italy
Date of Birth/Age :	03.10.1969
Date of Appointment :	25.07.2011
DIN No.:	03559131

KEY EXECUTIVES

Name :	Mr. Arvind Agarwal
Designation :	Account Manager
Name :	Mr. Shubharanshu Shekhar Trivedy
Designation :	Secretary
Address :	C-3/211, Sector-31, Noida-201301, Uttar Pradesh, India
Date of Birth/Age :	28.08.1973
Date of Appointment :	28.05.2010
PAN No.:	ACKPT3811A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 24.02.2012

Names of Shareholders (Equity Shares)	No. of Shares
Fiat Group Automobiles SPA (Class A), Italy	3799998
Fiat India Automobiles Private Limited (Class A), India	1
Sibille Alberto (Class A), Italy	1
CNH Asian Holding Limited NV (Class A), Belgium	3645916
CNH Asian Holding Limited NV (Class B), Belgium	116723086
Total	124169002

Names of Shareholders (Preference Shares)	No. of Shares
Fiat Group Automobiles SPA, Italy	686472
Total	686472

Equity Share Break up (Percentage of Total Equity)

As on: 24.02.2012

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 Agricultural And Construction Equipments.

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Tractors	(Nos.)	40,000	35,249*
Harvesters	(Nos.)	550	60

Notes:

1. *Excludes 12 Tractors

2. Licensed capacities have not been given as Government of India has delicensed these classes of goods.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	CITI Bank, Delhi Branch, Delhi, India

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and Associates Chartered Accountant
Address :	Golf View Corporate Totheyr B, Sector-42, Gurgaon - 122002, Haryana, India
PAN.:	AABFS3421N
Holding company :	Fiat Group Automobiles S.p.A, Italy
Ultimate Holding Company :	Fiat S.p.A, Italy
Memberships :
Others:	CNH Asian Holding Limited NV, Belgium CNH Global NV, Netherland
Associates/Subsidiaries :	Automotive Lighting Polska Sp.z o.o., Poland Case Corporation Pty Limited, Australia CNH America LLC, United States CNH Argentina S.A., Argentina CNH Australia PTY Limited, Australia CNH Burridge Operations, United States CNH Commercial S.A de C.V., Mexico CNH France SA, France CNH International S.A, Switzerland CNH Italia S.p.A, Italy CNH Latin America Limited a, Brazil CNH Services (Thailand) Limited, Thailand CNH Services SRL, Italy CNH U.K Limited, United Kingdom Fiat Group Automobiles, South Africa Fiat Group Purchasing SRL, Italy Fiat Partecipazioni India Private Limited Fiat Potheyrtrain Technologies S.p.A, Italy Fiat Potheyrtrain Technologis Sanghai R and D Company Limited, China Fiat Sepin S.c.p.a, Italy FPT Industrial S.p.A, Italy Isvor Dealernet SRL, Italy Iveco Latin America Limited a, Brazil Iveco S.p.A, Italy Magneti Marelli Do Brasil Industria e Camercio SA, Brazil New Holland SA, South Africa New Holland Tractors Limited. NV, Belgium Sevel, Italy Shanghai New Holland Agricultural Machinery Corporation Limited, China Turk Traktors ve Ziraat, Turkry

CAPITAL STRUCTURE

As on: 24.02.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.100/- each	Rs. 15000.000 Millions
50000000	Preference Shares	Rs.100/- each	Rs. 5000.000 Millions
	Total		Rs. 20000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
124169002	Equity Shares	Rs.100/- each	Rs. 12416.900 Millions
686472	Preference Shares	Rs.100/- each	Rs. 68.648 Millions
	Total		Rs. 12485.548 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		12485.548	12485.548	12485.548
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5600.880	5831.322	5788.367
4] (Accumulated Losses)		(6306.316)	(7293.484)	(7220.997)
NETWORTH		11780.112	11023.386	11052.918
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		11780.112	11023.386	11052.918
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3742.229	4841.209	6607.855
Capital work-in-progress		465.384	488.663	150.556
INVESTMENT		2256.026	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3363.715	2641.713	1591.095
	Sundry Debtors	2753.006	2479.138	1916.760
	Cash & Bank Balances	2717.707	3125.042	2272.356
	Other Current Assets	30.103	0.000	0.000
	Loans & Advances	1063.848	1185.418	1021.060
Total Current Assets		9928.379	9431.311	6801.271
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3730.470	3007.548	1919.928
	Other Current Liabilities	579.400	474.666	358.839
	Provisions	302.036	255.583	227.997
Total Current Liabilities		4611.906	3737.797	2506.764
Net Current Assets		5316.473	5693.514	4294.507
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		11780.112	11023.386	11052.918

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	22991.410	16729.374	11977.000
		Other Income	597.816	459.765
		TOTAL (A)	23589.226	17189.139	11977.000
Less	EXPENSES
		Raw Material Consumed	17004.699	12825.751
		Purchases of trading goods	447.157	396.243
		Increase in stock of finished goods and work in progress	(337.511)	(546.662)	9913.000
		Increase in Excise duty on closing stock	14.499	13.008
		Personal Expenses	909.022	740.889
		Operating and other expenses	2147.778	1524.971
		TOTAL (B)	20185.644	14954.200	9913.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3403.582	2234.939	2064.000
Less	FINANCIAL EXPENSES (D)		163.991	103.891	286.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3239.591	2131.048	1778.000
	DEPRECIATION/ AMORTISATION (F)		2252.423	2201.504	2127.000
	PROFIT BEFORE TAX (E-F) (G)		987.168	(70.456)	(349.000)
Less	TAX (I)		0.000	2.031	2.000
	PROFIT AFTER TAX (G-I) (J)		987.168	(72.487)	(351.000)
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(7293.484)	(7220.997)	(6870.050)
	BALANCE CARRIED TO THE B/S		(6306.316)	(7293.484)	(7221.000)
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. value of Exports	8234.504	5546.578	3241.486
		Service Rendered	30.473	25.775	25.103
	TOTAL EARNINGS		8264.977	5572.353	3266.589
	IMPORTS
		Raw Materials	2577.740	1990.662	997.004
		Traded Goods	347.302	354.860	36.400
		Capital Goods	340.707	307.675	319.523
		Others	0.154	8.899	10.057
	TOTAL IMPORTS		3265.903	2662.096	1362.984
	Earnings Per Share (Rs.)		(7.91)	(0.58)	(2.83)

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	4.18	(0.42)	(2.93)
Net Profit Margin (PBT/Sales)	(%)	4.29	(0.42)	NA
Return on Total Assets (PBT/Total Assets}	(%)	7.22	(0.49)	(2.60)
Return on Investment (ROI) (PBT/Networth)		0.08	(0.01)	(0.03)
Debt Equity Ratio (Total Liability/Networth)		1.23	0.34	0.23
Current Ratio (Current Asset/Current Liability)		2.15	2.52	2.71

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.12.2011 (Rs. in millions)	31.12.2010 (Rs. in millions)	31.12.2009 (Rs. in millions)
Sundry Creditors
ii. due to others	3730.470	3007.548	1919.928
Total	3730.470	3007.548	1919.928

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

OPERATIONS AND PERFORMANCE:

Car Business

The Company continues the business of selling cars - model Palio under the exclusive distributor agreement with Tata Motors Limited through its dealer network. Though, the Car industry showed a positive outlook during the year, the sales of Palio showed a downturn due to introduction of various new generation models by other manufacturers. The Palio model is being phased out as it is not complying with the Bharat IV emission norms.

To support the after sale service, the company also continues the business of spare parts and accessories for Palio and other earlier models of Fiat brand cars. During the current year there was a major fire at the Spare Parts warehouse at Vadgaon, Pune(Maharashtra) due to which the spare parts sale was severely affected for almost 7 months during the year. The sale of spares has since been restored from last week of December,

2011.

Tractor Business

The Indian Tractor industry touched the ever highest figure in 2011 and crossed 6 Lac Mark in the year 2011 with a strong growth of 18% over year 2010. New Holland Fiat India Private Limited in turn, also achieved growth of 15%. Domestic volume grew by 17.1% and Exports posted a growth of 10.8%.

As a part of business strategy, focus continued on Dealer Network to improve more in the year 2011. The network was further strengthened by covering unrepresented territories and also realigning territories. 73 new dealers were added and substantial number of non-performing dealers were closed down in 2011 including settlement of 17 dealers with legal cases. Network productivity also increased by 16%.

New Holland Fiat India Private Limited strengthened its product portfolio by consolidating the offerings and establishing its product in below 50HP range and Applications segment. They have also introduced and sold 90HP tractor which is technological leadership in itself. They are continuously working on extending the product range with introduction of new features to match upcoming implements and applications. This also helps them in maintaining their technological leadership with the competitors.

They continued making their strong presence felt in Govt. and Private sectors during the year by supplying 211 units to Agricultural Department of different states, 55 units to Indo Tibetan Border Force (ITBF), supplies in Tea Gardens and other sectors like Mines/ Construction/ Solid waste management etc.

They successfully complied to emission norms by introducing Trem3A tractors in above 50 HP from Oct 2011.

They have successfully launched Drive Line 12+3 upgrade for enhancing performance in Combine, Dozer and Loader application. This will also help in better seed bed preparation in Rotavator application.

To meet new customer requirements due to incoming implements / applications they are working on introducing Medium Duty Driveline for 50HP to 90HP segment and plan to roll it out soon.

This will enable farmer to take advantage of incoming new technologies in farm mechanizations and increase their productivity.

To support farm mechanization, they aggressively marketed Sugarcane harvester, Showcased technical protheyss of CNH by successful introduction of 8000 and 4000 series of Harvesters and achieved ever highest sales in India The Company increased its footprints in crop solution business also by selling ever highest Balers, Rakes and Rotavators. To further expand the Crop solution Business, they are continuously carrying out various field level activities like demo and displays to enhance the brand visibility and demonstrate the economic benefit of harvester which is catering to labor shortage problem.

Anticipating the continuation of agriculture growth and increasing strength of New Holland Fiat ( India) Private Limited. in India , they have already aggressively initiated our expansion plans (Tractor production up to 55000 Units) which will be completed in the later part of 2013.

During the year, there was significant increase in demand of Sugar Cane Harvesters and to cater the increased demand, they set up an assembly unit for Sugar cane harvesters at Pune, Maharashtra with an annual capacity of 550 units.

World Class Manufacturing Program has been implemented in their plant and they have achieved a good score. They have targeted to improve it\ further in the year 2012 and for Bronze level in the year 2014.

Year 2011 also witnessed various challenges on account of Raw Material Cost and availability due to considerable growth in demand in Automobile industry

Axle Business

During the year 2011, New Holland India Axle Plant produced total no. of 16,416 Axles, Out of total produced TLB Axles, they exported 9,123 nos. of TLB 4-Wheel Drive Axles to Construction Equipment Plants at Lecce and Burlington, 2603 Utility Axles for Utility Tractors to Turk

Tractor and 4690 TT Axles for internal consumption of their Tractor Plant at Greater Noida. A total of 11726 TLB Axles were exported this year from Axle Plant. They met the customer demand which ramped up from 20 Axles per day to 70 Axles per Day which was a major challenge during the year.

FIXED ASSETS:

· Leasehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office and Other Equipments

· Computers

· Vehicles

· Goodwill

· Computer Software

· Technical Knowhow fees

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 theyre 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 bettheyen 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. 53.89
UK Pound	1	Rs. 84.93
Euro	1	Rs. 72.51

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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
TOTAL		26

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 theyighted scores obtained from each of the major sections of this report. The assessed factors and their relative theyights (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.