MIRA INFORM REPORT

Report Date :

18.03.2013

IDENTIFICATION DETAILS

Name :	HITACHI HI-REL POWER ELECTRONICS PRIVATE LIMITED (w.e.f. 05.10.2011)
Formerly Known As :	HI-REL ELECTRONICS PRIVATE LIMITED (w.e.f. 24.07.2010) HI-REL ELECTRONICS LIMITED (w.e.f 29.07.2008) HI-REL ELECTRONICS PRIVATE LIMITED
Registered Office :	B/52, 5th Floor, Corporate House, Near Judges Bunglows, Bodakdev, Ahmedabad – 380054, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.01.1990
Com. Reg. No.:	04-013246
Capital Investment / Paid-up Capital :	Rs.55.932 Millions
CIN No.: [Company Identification No.]	U72200GJ1990PTC013246
PAN No.: [Permanent Account No.]	AAACH3875M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Solution provider for products like Uninterrupted Power Supplies (UPSs), Drives and Automation Equipment.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 2750000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established and reputed company having fine track record. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered 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	CRISIL
Rating	Letter of Credit
Rating Explanation	Strong degree of safety. It carry low credit risk.
Date	June 18, 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.

LOCATIONS

Registered Office/ Corporate Office :	B/52, 5th Floor, Corporate House, Near Judges Bunglows, Bodakdev, Ahmedabad – 380054, Gujarat, India
Tel. No.:	91-79-49002300/ 40098954
Fax No.:	91-79-49002301/ 40098955
E-Mail :	bhavesh_kinkhabwala@hitachi-hirel.com contact@hitachi-hirel.com alkesh_jalan@hitachi-hirel.com
Website :	http://www.hitachi-hirel.com
Factory 1 :	B-14/1 and 171, B-117 and 118, GIDC Electronics Zone, Sector 25, Gandhinagar – 382044, Gujarat, India
Tel. No.:	91-79-23287180/ 23287181
Fax No.:	91-79-23287182
Factory 2 :	SM 3 and 4, Sanand GIDC - II, Industrial Estate, Bol Village, Sanand - 382 110. Gujarat, India
Customer Support Department :	B-161, GIDC Electronics Zone, Sector 25, Gandhinagar – 382044, Gujarat, India
Tel. No.:	91-79-23287190
Sales Offices :	Located at: · Bangalore · Chennai · Delhi · Gujarat · Hyderabad · Kolkata · Mumbai · Pune

DIRECTORS

As on: 19.06.2012

Name :	Shigeru Sugiyama
Designation :	Nominee Director
Address :	4-13-25, Suehiro-Cho, Hitachi City, Ibaraki, 3160006, Japan
Date of Birth/Age :	28.10.1957
Date of Appointment :	28.09.2011
DIN No.:	03621268
Name :	Ichiro Iino
Designation :	Nominee Director
Address :	2-18-14-117, Tamagawadai, Setagaya-Ku Tokyo, 1580096, Japan
Date of Birth/Age :	26.09.1956
Date of Appointment :	28.09.2011
DIN No.:	03498961
Name :	Hideyuki Ariyasu
Designation :	Nominee Director
Address :	6-17-42,1 Higashi-Koigakubo, Kokubunji-shi, Tokyo, 1850014, Japan
Date of Birth/Age :	20.05.1956
Date of Appointment :	28.09.2011
DIN No.:	03621249
Name :	Akihiko Sato
Designation :	Nominee Director
Address :	2-I4-10Tamagawa, Oota-ku, Tokyo, NA, Japan
Date of Birth/Age :	25.09.1967
Date of Appointment :	28.09.2011
DIN No.:	03622182
Name :	Mr. Piyush Balvantlal Shah
Designation :	Managing Director
Address :	B-802, Tulip Citadel, Near Shreyas Crossing, Manekbaug, Ahmedabad - 380015 Gujarat, India
Date of Birth/Age :	18.07.1953
Date of Appointment :	20.06.1998
PAN No.:	ADIPS1241E
DIN No.:	00155760
Name :	Mr. Darshan Arvindbhai Shah
Designation :	Director
Address :	C - 602, Asavari Tower, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	24.04.1968
Date of Appointment :	12.02.1996
PAN No.:	ACIPS7764B
DIN No.:	00165566
Name :	Mr. Dhiren Ramanlal Shah
Designation :	Director
Address :	A- 601, Ratnakar II, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	15.07.1954
Date of Appointment :	12.02.1996
DIN No.:	02538074

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 19.06.2012

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on: 19.06.2012

Category	Percentage
Bodies corporate	64.66
Directors or relatives of directors	26.13
Other top fifty shareholders	9.21
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Solution provider for products like Uninterrupted Power Supplies (UPSs), Drives and Automation Equipment.

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity*	Actual Production
Static Converters	Nos.	NA	1000	477
Uninterruptible Power Supply System	Nos.	NA	3000	1724

* Installed capacities are as certified by the management on which the Auditor’s have relied, being a technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited Land Mark Race Course Circle, Alkapuri, Baroda - 390015, Gujarat, India

· The Bank of Tokyo-Mitsubishi UFJ Limited, 15th Floor, Hoechst House, Vinay K. Shah Marg, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Vehicle loans	4.777	1.611
Cash-credit from banks in FCNR (B) Account	38.367	0.000
Cash-credit from banks in Indian Rupees	3.903	89.747
Short-term borrowings from National Small Industries Corporation(NSIC)	0.000	13.257
Total	47.047	104.615

Notes:

(1) Vehicle loan from bank and financial companies

The Company has availed vehicle loans from various banks and financial companies, at rates of interest ranging from 10.00% to 11.50%. Such loans are

repayable in 34-36 equal monthly installments (including interest) from the date agreed with respective banks and others. Vehicles have been hypothecated under the respective loans.

(2) Cash Credit from banks

Cash Credit Accounts with Bank of India are secured by equitable mortgage of Leasehold Land situated at Plot No. B -116 to 119 at GIDC Electronics Estate, Gandhinagar, together with Buildings and Immovable properties and Office Premises situated at B-52, Corporate House, Judges Bungalows Road, Ahmedabad and hypothecation of plant & machinery, stock of stores, stock-in-trade and book debts of Unit-I. The cash credit is repayable on demand and carries interest @ 3.5% above base rate, present effective 14.25% p.a.

Cash Credit Account with ICICI Bank Limited is secured by hypothecation as and by way of first and exclusive charge in the current assets, moveable and immoveable fixed asset of Unit-2 (except for the asset which are currently under finance from other banks/institutions), Leasehold land situated at Plot No. B-14/1, B-171 at GIDC Electronic Estate, Gandhinagar and Mumbai Office at 202/203, Apollo Arcade, R.K. Singh Marg, Andheri East, Mumbai. The cash credit is repayable on demand and carries an interest rate of 10.0% and spread is 3.5%. i.e. 13.5% p.a.

Banking Relations :	--
Auditors :
Name :	S R Batliboi and Associates Chartered Accountants
Address :	Ahmedabad, Gujarat, India
PAN No.:	AABFS3421N
Holding Company :	Hitachi India Private Limited CIN No.: U52190DL1997PTC085419

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6500000	Equity Shares	Rs.10/- each	Rs.65.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5593243	Equity Shares	Rs.10/- each	Rs.55.932 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		55.932	42.118	37.257
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		632.504	245.355	100.460
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		688.436	287.473	137.717
LOAN FUNDS
1] Secured Loans		47.047	104.615	70.858
2] Unsecured Loans		278.488	7.380	62.515
TOTAL BORROWING		325.535	111.995	133.373
DEFERRED TAX LIABILITIES		4.744	0.755	0.000
TOTAL		1018.715	400.223	271.090
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		246.035	89.327	72.321
Capital work-in-progress		29.706	0.000	0.150
INVESTMENT		0.034	0.034	0.035
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	235.731	168.786	99.985
	Sundry Debtors	566.543	459.949	315.448
	Cash & Bank Balances	330.528	64.140	44.362
	Other Current Assets	22.839	10.501	1.186
	Loans & Advances	46.407	24.246	25.011
Total Current Assets		1202.048	727.622	485.992
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	328.799	324.463	191.520
	Other Current Liabilities	108.022	72.227	72.991
	Provisions	22.287	20.070	22.897
Total Current Liabilities		459.108	416.760	287.408
Net Current Assets		742.940	310.862	198.584
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1018.715	400.223	271.090

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		140.857	100.335	67.169
Less	FINANCIAL EXPENSES (D)		30.325	25.418	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		110.532	74.917	67.169
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.578	6.938	6.537
	PROFIT BEFORE TAX (E-F) (G)		100.954	67.979	60.632
Less	TAX (H)		26.000	23.224	34.012
	PROFIT AFTER TAX (G-H) (I)		74.954	44.755	26.620
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		134.462	89.707	73.805
	BALANCE CARRIED TO THE B/S		209.416	134.462	100.425
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	157.326	76.736	0.000
		Commission Earnings	0.000	0.000	1.651
		Commissioning and Service Charges	0.000	13.378	9.534
	TOTAL EARNINGS		157.326	90.114	11.185
	IMPORTS
		Raw Materials Components		31.455	4.895
		Uninterruptible Power Supply System		0.000	7.986
	TOTAL IMPORTS		NA	31.455	12.881
	Earnings Per Share (Rs.)		14.97	11.40	7.14

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	6.97	8.32	10.86
Return on Investment (ROI) (PBT/Networth)		0.15	0.24	0.44
Debt Equity Ratio (Total Debt/Networth)		0.47	0.39	0.97
Current Ratio (Current Asset/Current Liability)		2.62	1.75	1.69

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	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Indian rupee loan from banks	15.557	2.155
Foreign currency loan from banks	179.042	0.000
Cash-credit from banks	64.037	0.000
Interest free loan from related parties repayable on demand	0.000	0.300
Loans from shareholders	0.000	4.925
Short-term borrowings from banks	19.853	0.000
Total	278.489	7.380

Notes:

(1) Indian rupee loan from banks - Terms and condition

The company has availed a term loan from ICICI Bank Limited for the purpose of expansion of facilities at its Gandhinagar plant. The loan carries an interest rate of 12.50 % p.a. The loan is repayable in 54 monthly installments, commencing from April 2012. The company is in process of creating an exclusive charge in favour of the bank, by way of hypothecation of the company's moveable fixed assets to be funded out of ICICI Bank's term loan.

Term loan from HDFC Bank Limited borrowed in previous year was borrowed at an interest rate of 11% p.a. and it was repayable in 36 monthly installments from September, 2010. The loan has been fully repaid during the year. This loan was secured by equitable mortgage of the office premises situated at B-62, Corporate house, Judges Bungalow road, Ahmedabad.

(2) Foreign currency loan from banks

Foreign currency loan carries an interest rate of LIBOR plus 1.4%. The loan is repayable in 8 equal half yearly installments commencing from September, 2013. The company has to create first pari-passu charge by way of mortgage of immovable fixed assets and hypothecation of moveable fixed assets at Sanand factory, within 6 months from March, 2012.

(3) Short Term Borrowings from NSIC

Loan from National Small Industries Corporation are secured by the bank guarantees, which are ultimately secured by hypothecation and exclusive charge of the current assets, moveable and immoveable fixed asset of Unit-2.

OPERATIONAL REVIEW

The year 2011-12 has been a very significant year for the company. Hitachi Limited, Japan, a globally renowned 110 Billion US $ conglomerate invested to secure a majority position in your company through its Indian subsidiary Hitachi India Private Limited. This indeed is a tribute to the years of hard work and dedication of company employees. They have been truly recognized.

This change will transform the entire face and the future of the company. Many new product lines, Brand Equity support of Hitachi, depth of resources etc. will take the company to new heights.

Considering the fact that revenues from new HITACHI products have yet to start flowing, the company’s performance in 2011-12 over 2010-11 is truly remarkable. Net sales Billed, Earnings etc. have grown by more than 40% over 2010-11. The order book looks quite promising.

However, the state of Indian Economy is a major cause of worry. Slowdown in reforms, high interest and inflation rates etc. are hurting the capital investment sentiments very hard. Domestic as well as foreign investors are very nervous about making new investments.

Hopefully, the backlog of order and introduction of HITACHI Brand in Company’s operations will help the Company grow in 2012-13.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U72200GJ1990PTC013246
Name of the company	HITACHI HI-REL POWER ELECTRONICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B/52, 5th Floor, Corporate House, Near Judges Bunglows, Bodakdev, Ahmedabad – 380054, Gujarat, India E-mail: bhavesh_kinkhabwala@hitachi-hirel.com
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	The Bank of Tokyo-Mitsubishi UFJ Limited, 15th Floor, Hoechst House, Vinay K. Shah Marg, Nariman Point, Mumbai - 400021, Maharashtra, India E-mail: gurunath_awasare@in.mufg.jp
Nature of instrument creating charge	Agreement of hypothecation covering stocks and book-debts
Date of instrument Creating the charge	03.08.2012
Amount secured by the charge	Rs. 155.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Margin i) 25% against raw material, finished goods; ii) 25% against stores; iii) 25% against goods in process; iv) 25% against book-debts outstanding upto 3 months; Extent and Operation of the charge The charge created in favour of the Bank for the facilities granted by the Bank for the business purpose of the borrower on such terms and conditions and stipulations as agreed upon and detailed in the attached document, to rank as first pari passu charge with that of ICICI Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Movable goods both present and future, all stocks of raw material work in progress semi-finished goods and finished goods belong to the Borrower. All the present and future book-debts, outstanding monies, receivables claims bills, contracts, engagements and securities which are now due and owing.

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Office Building

· Residential Building

· Plant and Equipment

· Factory Equipments

· Furniture and Fixtures

· Vehicles

· Computer Equipments

Intangible Assets

· Computer Software

· Know-how

AS PER WEBSITE DETAILS:

Press Releases

HITACHI HI-REL POWER ELECTRONICS' NEW MANUFACTURING FACILITY STARTS OPERATIONS

Tokyo, Japan and Ahmedabad, India, December 12, 2012 – Hitachi, Limited (President: Hiroaki Nakanishi, TSE: 6501, “Hitachi”) today announced that Hitachi Hi-Rel Power Electronics Private Limited (Managing Director: Piyush Shah, “Hitachi Hi-Rel”), a group company in the Republic of India (“India”), has established and started operations at a new manufacturing facility in the Sanand-II Gujarat Industrial Development Corporation (GIDC) Estate. With this new factory now operating alongside its existing Gandhinagar factory, Hitachi Hi-Rel intends to enhance the lineup of industrial power electronics for use in plants in fields such as power generation, steelmaking, and chemicals. The goal is to expand Hitachi Hi-Rel's revenue of the growing Indian infrastructure market.

India is currently seeing the construction of many large-scale plants such as power plants, steel works and petrochemical plants, spurred by its rapidly growing economy and plans for large-scale investments in renewable energy to realize a low-carbon society. These developments are expected to lead to expansion in demand for industrial power electronics such as medium and low voltage inverter drive systems, uninterrupted power supplies (UPS) and power conditioners for power generation. These products are required to ensure stable operations of large-scale factories, and to conserve energy.

In October 2011, Hitachi invested in Hi-Rel whereby Hi-Rel Electronics Private Limited became a subsidiary and changed its name to Hitachi Hi-Rel Power Electronics Private Limited Since the 1980s, Hi-Rel Electronics had expanded mission-critical businesses in India, including backup power and power stabilizer solutions in a broad range of fields, such as oil refining, petrochemicals, power generation, steelmaking and metals.
Hitachi Hi-Rel's Gandhinagar factory manufacturers power electronics such as　Industrial UPS, battery chargers and inverters for railway applications. Furthermore, since October, 2012, the factory has added grid-connected solar power inverters to the production lineup to address demand in the renewable energy field.

Having started operations, the Sanand factory will produce industrial power electronics products such as medium-voltage and low voltage inverter drives steel automation drives and industrial automation products to increase its lineup of offerings. This will enable Hitachi Hi-Rel to manufacture cost competitive products with “best-in-class” quality with Hitachi manufacturing know-how. By increasing production capacity through the start of operations at the new factory, Hitachi Hi-Rel seeks to increase its revenue of the Indian market. At the same time, Hitachi Hi-Rel will strive to expand business with a view to exporting products to regions that hold potential markets for social infrastructure systems; namely, the Middle East, Southeast Asia, Africa among others. Through these and other measures, Hitachi Hi-Rel aims to generate revenues of 8 billion Indian Rupees (about 12 billion yen*) in the fiscal year ending March 31, 2016.

* At the exchange rate of 1.5 yen per Indian Rupee.

Hitachi is focusing on accelerating the global development of the Social Innovation Business, which is made up of social infrastructure supported by highly reliable and highly efficient information and telecommunications technology.

Hitachi has identified India as a fifth key overseas management area, and will strive to further expand business centred on the Social Innovation Business in the country.

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.54.16
UK Pound	1	Rs.81.75
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

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.