MIRA INFORM REPORT

Report Date :

19.11.2013

IDENTIFICATION DETAILS

Name :	GKN DRIVELINE (INDIA) LIMITED
Formerly Known As :	GKN INVEL TRANSMISSIONS LIMITED
Registered Office :	Plot No. 270, Sector – 24, Faridabad – 121 005, Haryana
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	25.07.1985
Com. Reg. No.:	05-034079
Capital Investment / Paid-up Capital :	Rs.127.731 Millions
CIN No.: [Company Identification No.]	U74999HR1985PLC034079
TAN No.: [Tax Deduction & Collection Account No.]	RKTG03318A / RKTG02547G
PAN No.: [Permanent Account No.]	AAACG4276B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Auto Parts Components.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 11520000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has failed to file its financial for the year 2013. As per available financial of 2012, there appears losses recorded by the company from its operational activities. External borrowing of the company appears to increase during the year 2012. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

NOTES:

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

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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/ Factory 1 :	Plot No. 270, Sector – 24, Faridabad – 121 005, Haryana, India
Tel. No.:	91-129-4091100/ 2232531
Fax No.:	91-129-2230580
E-Mail :	ashish.kumar@gkndriveline.com
Website :	www.gkndriveline.com
Factory 2 :	Plot No. B-13, SIPCOT Industrial Park, Vaipur A and B, Oragadam, Sriperumbadur, Kancheepuram – 602 105, Tamil Nadu, India
Tel. No.:	91-44-27142380
Fax No.:	91-44-27142300
E-Mail :	info@gkndriveline.com
Factory 3 :	34 and 35, Industrial Area, Dharuhera – 122 106, Haryana, India
Tel. No.:	91-1274-398000/ 242579
Fax No.:	91-1274-242581

DIRECTORS

AS ON 28.06.2013

Name :

Mr. Bharat Dev Singh Kanvar

Designation :

Managing Director

Address :

A-701, Eves Garden, Baner Road, Baher, Pune – 411 045, Maharashtra, India

Date of Birth/Age :

08.11.1956

Date of Appointment :

28.06.2013

DIN No.:

00428180

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	U74999PN2000PTC015131	DANA INDIA PRIVATE LIMITED	Managing director	17/12/2010	27/09/2005	04/01/2013	Active	NO
2	U74210PN2001PTC129657	DANA INDIA TECHNICAL CENTRE PRIVATE LIMITED	Managing director	13/12/2010	15/06/2007	04/01/2013	Active	NO
3	U34300MH1993PLC073227	SPICER INDIA LIMITED	Director	06/12/2010	06/12/2010	04/01/2013	Active	NO
4	U74899DL1995PLC070604	DRIVETECH ACCESSORIES LIMITED	Director	28/06/2013	14/03/2013	-	Active	NO
5	U74999HR1985PLC034079	GKN DRIVELINE (INDIA) LIMITED	Managing director	28/06/2013	14/03/2013	-	Active	NO

Name :

Mr. Mansoor Anwar

Designation :

Director

Address :

29, Leonie Hill, #03-01, Horizon Tower (West Block), Singapore – 239 228

Date of Birth/Age :

22.04.1957

Date of Appointment :

01.09.2002

DIN No.:

00467520

Name :

Mr. Marc Louis Gustave Vuarchex

Designation :

Director

Address :

267, Jalan Kampong Chantek, Singapour -587941, Singapore

Date of Birth/Age :

12.03.1952

Date of Appointment :

24.06.2011

DIN No.:

03487779

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	U74999HR1985PLC034079	GKN DRIVELINE (INDIA) LIMITED	Director	24/06/2011	23/03/2011	Active	NO

Name :

Mr. Christophe Jean Philippe Jollivel

Designation :

Whole-time Director

Address :

46, Route De Fille, 72700 Spay, France

Date of Birth/Age :

31.01.1969

Date of Appointment :

28.06.2013

DIN No.:

06431185

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	U74999HR1985PLC034079	GKN DRIVELINE (INDIA) LIMITED	Whole-time director	28/06/2013	13/12/2012	Active	NO

Bottom of Form

KEY EXECUTIVES

Name :	Mr. Ashish Kumar Pandey
Designation :	Secretary
Address :	H. No. A – 68, Ashoka Enclave II, Sector 37, Faridabad – 122 003, Haryana, India
Date of Birth/Age :	13.07.1975
Date of Appointment :	22.06.2010
PAN No.:	AKXPP2127N

MAJOR SHAREHOLDERS

NOTE: SHAREHOLDERS LIST ATTACHED

Equity Share Break up (Percentage of Total Equity)

AS ON 28.06.2013

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	97.13
Bodies corporate	0.05
Other top fifty shareholders	0.49
Others	2.30
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Auto Parts Components.

Products :

ITC Code	Product Descriptions
870850.00	Drive Axles Including Constant Velocity Joints

· Drive Module For Motor Assisted

· Electro-Magnetic Control Device

· Electronic Lock-Up Differential

· Free Running Rear Differential

· High Performance Helical Lsd

· Highly Adaptable Torque Sensing Multi-Plate Lsd

· One-Piece Aluminium Rear Propshaft

· One-Piece Front Propshaft

· Sealing Systems For Constant Velocity Joints

· Three-Piece Propshaft

· Torque-Sensing Super Lsd

· Tripod Plunging Joint Aar

· Tripod Plunging Joint Gi

· Tubular Shaft

· Two-Piece Propshaft

· Visco Lok Lsd Speed-Sensing

· Viscous Coupling

· Ball Plunging Constant Velocity Joint

· Ball Plunging Constant Velocity Joints

· Fixed Constant Velocity Joints

· Tripod Plunging Constant Velocity Joints

· Ball Plunging Joint Do

· Ball Plunging Joint Sc

· Ball Plunging Joint Vl

· Ball Plunging Joint Vl Disc

· Ball Plunging Joint Vl Monobloc

· Fixed Ball Joint Ac

· Fixed Ball Joint Uf

· Final Drive Unit (Geared Power Transmission Products)

· Power Transfer Unit

· Electronic Torque Manager

· Electronic Torque Vectoring

· Sealing Systems

PRODUCTION STATUS AS ON 31.12.2011

Particulars	Unit	Licensed Capacity	Installed Capacity*
Drive Axle Assembly and Components including C. V. Joints	Sets	NA	2322000
Precision Forgings	Sets	NA	3600000

*Installed capacity is computed on a triple shift basis using a six day week and certified by the management and being a technical matter has been relied upon by the auditors.

Particulars	Units	Actual Production
Drive Axle Assembly	Sets	1920296
Others	Nos	272277

GENERAL INFORMATION

No. of Employees :	700 (Approximately)
Bankers :	· ICICI Bank · IDBI Bank · HDFC Bank Limited · Canara Bank · Standard Chartered Bank · The Hongkong and Shanghai Banking Corporation Limited · Citibank N.A.

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Building 8, Tower B, 8^th Floor, DLF Cyber City, Gurgaon-122022, Haryana, India
Group :	GKN Driveline (India) Limited is a part of group of GKN PLC and its affiliates
Ultimate parent Company :	GKN Plc, UK
Holding Company:	GKN Driveline International GmbH, Germany
Subsidiaries :	Drivetech Accessories Limited [CIN No.: U74899DL1995PLC070604]
Fellow Subsidiaries :	· GKN Driveline Japan Limited, Japan · GKN Do Brasil Ltda, Biasil · GKN Driveline Zumaia SA, Spain · GKN Driveline Vigo,Spain · GKN Arya Servicio,Spain · GKN Driveline Lazpiur Limited,Spain · GKN Group Service Limited, UK · GKN Driveline Birmingham Limited, U.K · GKN Automotive Limited, U.K · GKN Holding PLC, U.K · GKN (United Kingdom) Pic. UK · AP Newall and Company Limited, U.K. · GKN Aerospace Services (Cowes), U.K. · GKN Gelenkwellenwerk Kailserslautern GMBH, Germany · GKN Service International GmbH, Germany · GKN Walterscheid Gmbh, Germany · GKN Driveline Trier GmbH · GKN Driveline Deutschland GmbH, Germany · GKN Driveline Firenze SpA, Italy · GKN Driveline Brunico, SpA, Italy · GKN Driveline North America, Inc, USA · GKN Driveline Malaysia Sdn Bhd, Malaysia · GKN Driveline Korea Limited, South Korea · GKN Driveline (Thailand) Limited, Thailand · GKN Driveline Manufacturing Limited [Formerly GKN Driveline JTEKT Manufacturing Limited ] · Unidrive Pty Limited, Australia · GKN Driveline Singapore Pte Limited, Singapore · GKN Driveline Slovenija, d.o.o, Slovenia · GKN Driveline SA, France · GKN Driveline Polska Sp.zo.o, Poland · GKN Sinter Metals Private Limited, India
Joint Venture of GKN Plc, UK, The ultimate parent company :	· Shanghai GKN Driveshaft Company Limited, China · Taiway Limited, Taiwan

CAPITAL STRUCTURE

AS ON 28.06.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12773061	Equity Shares	Rs. 10/- each	Rs.127.731 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	127.731	127.731
(b) Reserves & Surplus	2754.627	3004.345
(c) Money received against share warrants	0.000	0.000
	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	2882.358	3132.076
(3) Non-Current Liabilities
(a) long-term borrowings	1000.000	0.000
(b) Deferred tax liabilities (Net)	0.044	121.441
(c) Other long term liabilities	6.791	5.516
(d) long-term provisions	93.155	68.505
Total Non-current Liabilities (3)	1099.990	195.462
(4) Current Liabilities
(a) Short term borrowings	111.488	287.267
(b) Trade payables	1303.837	1380.831
(c) Other current liabilities	426.355	347.034
(d) Short-term provisions	53.608	26.031
Total Current Liabilities (4)	1895.288	2041.163
TOTAL	5877.636	5368.701
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3712.065	3100.521
(ii) Intangible Assets	1.062	0.224
(iii) Capital work-in-progress	213.718	171.758
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.502	0.502
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	154.371	321.611
(e) Other Non-current assets	0.700	0.700
Total Non-Current Assets	4082.418	3595.316
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	861.896	859.465
(c) Trade receivables	683.143	659.468
(d) Cash and cash equivalents	25.740	34.971
(e) Short-term loans and advances	222.567	219.376
(f) Other current assets	1.872	0.105
Total Current Assets	1795.218	1773.385
TOTAL	5877.636	5368.701

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		127.731
2] Share Application Money		0.000
3] Reserves & Surplus		2861.841
4] (Accumulated Losses)		0.000
NETWORTH		2989.572
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		84.295
TOTAL		3073.867
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1960.331
Capital work-in-progress		765.453
INVESTMENT		0.502
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	715.057
	Sundry Debtors	541.719
	Cash & Bank Balances	345.394
	Other Current Assets	0.304
	Loans & Advances	256.012
Total Current Assets		1858.486
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1372.926
	Other Current Liabilities	92.016
	Provisions	45.963
Total Current Liabilities		1510.905
Net Current Assets		347.581
MISCELLANEOUS EXPENSES		0.000
TOTAL		3073.867

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.12.2012	31.12.2011	31.12.2010
	SALES
		Income		6821.908	6376.296	5785.288
		Other Income		5.303	57.200	67.310
		TOTAL (A)		6827.211	6433.496	5852.598
Less	EXPENSES
		Cost of Materials Consumed		4308.521	3873.206
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(46.838)	(34.215)
		Employee Benefits Expenses		655.324	475.323
		Other Expenses		1734.010	1510.543
		TOTAL (B)		6651.017	5824.857	5004.661
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			176.194	608.639	847.937
Less	FINANCIAL EXPENSES (D)			106.864	22.297	0.317
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			69.330	586.342	847.620
Less	DEPRECIATION/ AMORTISATION (F)			440.445	360.909	300.499
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			(371.115)	225.433	547.121
Less	TAX (H)			(121.397)	82.929	184.606
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			(249.718)	142.504	362.515
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			2640.020	2497.516	2135.001
	BALANCE CARRIED TO THE B/S			2390.302	2640.020	2497.516
	EARNINGS IN FOREIGN CURRENCY
			FOB Value of Exports	50.105	89.364	163.581
	TOTAL EARNINGS			50.105	89.364	163.581
	IMPORTS
			Raw Materials, Components and Spares	518.583	573.097	1301.372
			Capital Goods	1992.845	1571.724	169.419
	TOTAL IMPORTS			2511.428	2144.821	1470.791
	Earnings Per Share (Rs.)			(19.55)	11.16	28.38

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	(3.66)	2.22	6.19
Net Profit Margin (PBT/Sales)	(%)	(5.44)	3.13	9.46
Return on Total Assets (PBT/Total Assets}	(%)	(6.52)	4.63	14.33
Return on Investment (ROI) (PBT/Networth)		(0.13)	0.07	0.18
Debt Equity Ratio (Total Debt /Networth)		0.39	0.09	0.00
Current Ratio (Current Asset/Current Liability)		0.95	0.87	1.23

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	Yes
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	No

UNSECURED LOANS:

Particulars	31.12.2012 Rs. In Millions	31.012.2011 Rs. In Millions
Long Term Borrowings
Term Loan from banks	1000.000	0.000
Short Term Borrowings
Overdraft from Bank	10.070	0.000
Working Capital Loan from Bank	2.500	170.000
Balance under recourse factoring arrangement with HDFC Bank	98.918	117.267
Total	1111.488	287.267

NOTES:

Long Term Borrowings:

Nature of Security and Terms of Repayment for Unsecured Borrowings

Term loan from bank is guaranteed by a corporate guarantee given by fellow subsidiary GKN Holding plc.

Term Loan from bank is repayable in four six monthly installments beginning from March 2014 to March 2016 along with interest at 12.75% p.a.

Short Term Borrowings:

The above borrowings from bank is guaranteed by corporate guarantee given by GKN (United Kingdom) Plc, a fellow subsidiary.

NOTE: No Charges Exist for Company.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Installation

· Mechanical and Testing Equipments

· Furniture and Fixtures

· Office Equipments

· Computers

· Vehicles

· Development Lab Equipments

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 records 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.62.63
UK Pound	1	Rs.101.06
Euro	1	Rs.84.56

INFORMATION DETAILS

Report Prepared by :

NKT

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	2
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.