MIRA INFORM REPORT

Report Date :

30.10.2013

IDENTIFICATION DETAILS

Name :	STANZEN TOYOTETSU INDIA PRIVATE LIMITED

Registered Office :	Plot No.20, Building No.2, Bidadi Industrial Area, District Ramanagara, Bangalore – 562 109, Karnataka

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	30.11.1998

Com. Reg. No.:	08-024464

Capital Investment / Paid-up Capital :	Rs.170.000 Millions

CIN No.: [Company Identification No.]	U34300KA1998PTC024464

TAN No.: [Tax Deduction & Collection Account No.]	BLRS04218E

PAN No.: [Permanent Account No.]	AADCS5675B

Legal Form :	Private Limited Liability Company

Line of Business :	Subject is engaged in the manufacture of automobile components.

No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1100000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is a joint venture between “Toyoda Iron Works Company Limited, Japan”, “Stanzen Techno Private Limited, Bangalore” and “Toyota Tsusho Corporation, Japan”. It is well established company having a satisfactory track record. The company is continuously incurring losses from its last 2 years of operations. However, general financial seems to be good. The company gets strong support from its holding companies. There appears no external borrowing. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. In view of experience promoters, the company can be considered for normal business dealings at usual trade terms and condition.

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

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

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest. The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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 DECLINED BY

Name :	Mr. Nitaraj
Designation :	Deputy General Manager in Finance
Contact No.:	91-9740015013
Date :	29.10.2013

LOCATIONS

Registered Office :	Plot No.20, Building No.2, Bidadi Industrial Area, District Ramanagara, Bangalore – 562 109, Karnataka, India
Tel. No.:	91-80-27287158/ 59/ 74/ 75
Mobile No.:	91-9740015013 (Mr. Nitaraj)
Fax No.:	91-80-27287153
E-Mail :	nataraj.k@stti.ttp.co.on sttimarketing@stti.ttp.co.in
Website :	www.stanzentoyotetsu.com

DIRECTORS

As on 24.07.2013

Name :

Mr. Masaaki Kobayahi

Designation :

Managing Director

Address :

Flat No.12, Capricon, C.V. Raman Road, Sadashivanagar, Bangalore – 560 080, Karnataka, India

Date of Birth/Age :

25.04.1957

Date of Appointment :

01.08.2012

DIN No.:

02648896

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	U34300KA2008PTC048504	TOYOTETSU INDIA AUTO PARTS PRIVATE LIMITED	Director	28-07-11	15-04-09	-	Active	NO
2	U34300KA1998PTC024464	STANZEN TOYOTETSU INDIA PRIVATE LIMITED	Managing director	01-08-12	12-08-09	-	Active	NO

Name :

Mr. Yoshimasa Sugimoto

Designation :

Whole Time Director

Address :

No.B-907, Eight Floor, Birch Block, Prestige St, John’s Wood, No.18, 18/1, 2^nd Cross, Chikka, Adugodi, Bangalore – 560 029, Karnataka, India

Date of Birth/Age :

15.05.1963

Date of Appointment :

16.07.2012

DIN No.:

02727011

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	U34300KA1998PTC024464	STANZEN TOYOTETSU INDIA PRIVATE LIMITED	Whole-time director	16-07-12	16-07-09	-	Active	NO
2	U34300KA2008PTC048504	TOYOTETSU INDIA AUTO PARTS PRIVATE LIMITED	Director	30-07-12	15-05-12	-	Active	NO

Name :

Mr. Avinash Sosale

Designation :

Whole Time Director

Address :

No.94, Arvind, 11^th Cross Margosa Road, Malleswaram, Bangalore – 560 003, Karnataka, India

Date of Birth/Age :

04.01.1981

Date of Appointment :

30.07.2013

DIN No.:

03191246

PAN No.:

ANAPS8059G

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	U34300KA1998PTC024464	STANZEN TOYOTETSU INDIA PRIVATE LIMITED	Whole-time director	30-07-13	30-07-10	-	Active	NO
2	U29246KA2010PTC052922	STANZEN ENGINEERING PRIVATE LIMITED	Director	31-10-12	04-02-11	-	Active	NO

Name :

Shingo Shishikura

Designation :

Whole Time Director

Address :

G-906, Pegasus Wing, Brigade Gateway, 26/1, Dr. Rajkumar Road, Rajajinagar Extenstion, Malleswaram West, Bangalore – 560 055, Karnataka, India

Date of Birth/Age :

19.05.1959

Date of Appointment :

28.07.2011

DIN No.:

03581399

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	U34300KA1998PTC024464	STANZEN TOYOTETSU INDIA PRIVATE LIMITED	Whole-time director	28-07-11	28-07-11	-	Active	NO
2	U34300KA2008PTC048504	TOYOTETSU INDIA AUTO PARTS PRIVATE LIMITED	Director	30-07-12	15-05-12	-	Active	NO

Name :

Kazuhiko Takarada

Designation :

Director appointed in casual vacancy

Address :

201-15, 4 Chjome, Miyukihnomachi, Toyota City, Aichi, Japan – 473-0901

Date of Birth/Age :

13.10.1951

Date of Appointment :

27.06.2011

DIN No.:

00104768

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	U24117KA1998PLC023279	TRINITY COATING SYSTEMS LIMITED	Director	25-09-08	25-09-08	08-09-11	Active	NO
2	U34300KA1998PTC024464	STANZEN TOYOTETSU INDIA PRIVATE LIMITED	Director appointed in casual vacancy	27-06-11	27-06-11	-	Active	NO

Name :

Jun Koizumi

Designation :

Director appointed in casual vacancy

Address :

Embassy Orchard, No.57/38763, Rajmahal Villas Extension, 1^st Stage, No.702

Date of Birth/Age :

05.10.1966

Date of Appointment :

04.07.2011

DIN No.:

03577631

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	U34300KA1998PTC024464	STANZEN TOYOTETSU INDIA PRIVATE LIMITED	Director appointed in casual vacancy	04-07-11	04-07-11	-	Active	NO
2	U34300KA2008PTC048504	TOYOTETSU INDIA AUTO PARTS PRIVATE LIMITED	Director	27-07-11	21-07-11	16-05-12	Active	NO

Name :

Mr. Ravi Sitaraman

Designation :

Whole Time Director

Address :

Flat No.102, Harinivas Apartment, Basavanagudi, Bangalore – 560 004, Karnataka, India

Date of Birth/Age :

26.06.1956

Date of Appointment :

01.08.2012

DIN No.:

05333528

PAN No.:

AAVPR7843R

Name :

Manabu Yamamoto

Designation :

Director appointed in casual vacancy

Address :

7-8-6 Miyoshigaoka, Miyoshi 4700202

Date of Birth/Age :

11.05.1962

Date of Appointment :

30.08.2012

DIN No.:

03578516

KEY EXECUTIVES

Name :	Mr. S.R. Ravi
Designation :	Company Secretary
Address :	Flat No.102, Harinivas Apartment, Basavanagudi, Bangalore – 560 004, Karnataka, India
Date of Birth/Age :	26.06.1956
Date of Appointment :	05.09.2006
PAN No.:	AAVPR7843R

Name :	Mr. Nitaraj
Designation :	Deputy General Manager in Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.07.2013

Names of Shareholders		No. of Shares
Toyoda Iron Works Company Limited, Japan		13175000
Toyota Tsusho Corporation, Japan		850000
Stanzen Techno Private Limited, India		2975000
Total		17000000

As on 24.07.2013

Equity Share Break up (Percentage of Total Equity)

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	82.50
Bodies corporate	17.50
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the manufacture of automobile components.

Products :

Item Code No. (ITC Code)	87089900
Product Description	Parts of Motor Vehicle
Item Code No. (ITC Code)	82073000
Product Description	Dies and Tools
Item Code No. (ITC Code)	64050000
Product Description	Stamping charges

GENERAL INFORMATION

No. of Employees :	Information declined by the management

Bankers :	UFJ Bank Limited, New Delhi Branch, Upper Ground Floor, Mercantile House, 15, Kasturba Gandhi Marg, New Delhi – 110 001, India


Banking Relations :	---

Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	5^th Floor, Tower D, The Millenia, 1 and 2 Murphy Road, Ulsoor, Bangalore – 560 008, Karnataka, India
PAN No.:	AADFP9359C

Holding company :	Toyoda Iron Works Company Limited

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	· Stanzen Links · Stanzen Engineering Private Limited

CAPITAL STRUCTURE

As on 24.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

23000000	Equity Shares	Rs.10/- each	Rs.230.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

17000000	Equity Shares	Rs.10/- each	Rs.170.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	170.000	170.000	170.000
(b) Reserves & Surplus	124.870	139.175	260.299
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	294.870	309.175	430.299

(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	14.339	9.206	7.658
Total Non-current Liabilities (3)	14.339	9.206	7.658

(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	276.980	217.502	132.781
(c) Other current liabilities	93.491	39.091	20.775
(d) Short-term provisions	1.392	1.980	40.402
Total Current Liabilities (4)	371.863	258.573	193.958

TOTAL	681.072	576.954	631.915

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	176.045	178.607	138.449
(ii) Intangible Assets	0.554	0.337	0.299
(iii) Capital work-in-progress	2.361	5.797	5.339
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	11.068
(d) Long-term Loan and Advances	2.052	7.197	12.014
(e) Other Non-current assets	0.000	0.548	55.152
Total Non-Current Assets	181.012	192.486	222.321

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	39.499	35.859	21.612
(c) Trade receivables	177.145	175.465	138.316
(d) Cash and cash equivalents	185.882	118.651	193.288
(e) Short-term loans and advances	93.534	51.280	47.763
(f) Other current assets	4.000	3.213	8.615
Total Current Assets	500.060	384.468	409.594

TOTAL	681.072	576.954	631.915

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1322.801	1002.754	952.234
		Other Income
		TOTAL	1322.801	1002.754	952.234

Less	EXPENSES
		Office Expenses
		Administrative Expenses	1302.944	1068.796	810.393
		Advertising Expenses
		Financial Expenses
		TOTAL	1302.944	1068.796	810.393

	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		19.857	(66.042)	141.841

Less/ Add	DEPRECIATION/ AMORTISATION		36.085	43.950	35.641

	PROFIT/ (LOSS) BEFORE TAX		(16.228)	(109.992)	106.200

Less	TAX		(1.923)	11.132	37.007

	PROFIT/ (LOSS) AFTER TAX		(14.305)	(121.124)	69.193

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		103.626	224.750	200.262

Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	5.189
		Proposed Dividend (including dividend tax)	0.000	0.000	39.516
	BALANCE CARRIED TO THE B/S		89.321	103.626	224.750

	IMPORTS
		Raw materials parts & Components	3.439	2.450	2.223
		Stores & Spares	2.836	5.780	2.819
		Capital Goods	0.578	20.677	6.255
	TOTAL IMPORTS		6.853	28.907	11.297

	Earnings/ (Loss) Per Share (Rs.)		(0.84)	(7.12)	4.07

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(1.08)	(12.08)	7.27

Return on Total Assets (PBT/Total Assets}	(%)	(2.39)	(19.26)	17.25

Return on Investment (ROI) (PBT/Networth)		(0.06)	(0.36)	0.25

Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00

Current Ratio (Current Asset/Current Liability)		1.34	1.49	2.11

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	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	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	No

GENERAL INFORMATION:

Subject is joint venture between Toyoda Iron Works Company Limited, Japan, Stanzen Techno Private Limited and Toyota Tsusho Corporation, Japan. The Company is engaged in the manufacture of automobile components through pressing and welding and manufacture and trading of tools and dies for passenger cars. The Company has a manufacturing facility at Bidadi, Bangalore, India and predominantly sells its products in India.

REVIEW OF OPERATIONS:

During the year the Sale of Auto Components increased by 33% from Rs. 953.000 millions in 2011-12 to Rs. 1269.000 millions in 2012-13. The tooling sales during the year was Rs. 41.000 millions as compared to Rs. 32.000 millions during the year 2010-11. The Company incurred loss of Rs. 16.228 millions during the year against loss of Rs. 109.992 millions during the year 2011-12

The loss for the year has reduced considerably mainly due to increase in the business volume and effect of several cost reduction measures taken by the Company to restore profitability.

CONTINGENT LIABILITIES

Rs. In Millions

Particulars	31.03.2013	31.03.2012
Indirect Tax matters
(a) During the month of January 2008, the company availed VAT credit of Rs.0.507 million on foundation work for installation of its press machines, which was disallowed by the Commercial Tax Department as the same qualifies as restricted goods for availing the VAT credit. The department levied interest of Rs.0.234 million and penalty of Rs.0.051 million on account of excess credit availed. The Company has deposited an amount of Rs.0.396 millions 'under protest' in this regard. The Joint Commissioner of Commercial Taxes (Appeals), Bangalore, dismissed the appeal filed by the Company on April 22, 2012 and the Company has filed an appeal with the Karnataka Appellate Tribunal, and a hearing is awaited.	0.792	0.792
(b) The Company had availed cenvat credit for input services relating to employee transportation amounting to Rs.2.329 millions and outdoor catering service amounting to Rs.0.703 millions for the period January 2008 to November 2010. The Department of Central Excise and Customs issued Show cause notice on March 21, 2011 objecting to the availment of credit. The Additional Commissioner of Central Excise, Bangalore, vide his Order dated September 19, 2011 allowed the credit availed by the Company. However, department appealed against the said order of the Additional Commissioner Commissioner of Central Excise, Bangalore, on January 10, 2012 and the Company has filed Memorandum of cross Objections on March 9, 2012 in this regard.	3.338	3.032
Further during the year on September 20, 2012, the Company has received order from the Additional Commissioner of Central Excise allowing input credits on canteen services of Rs.0.042 million ( for the period October 2007 to March 2008) and Rs.0.263 million ( for the period December 2010 to March 2011). However, department appealed against the said order of the Additional Commissioner of Central Excise, Bangalore. The Company has filed Memorandum of Cross objections on February 4, 2013 and hearing is awaited.
Others
The Company suffered a set back in industrial relation 2010-11, and early part of 2011-12. On March 19, 2011, certain workmen indulged in violence, physical assault and manhandling of management personnel. The Company suspended 25 workmen and served a show cause notice and a charge sheet by initiating domestic enquiry against these workmen. Meanwhile the suspended workmen have brought a stay on the domestic enquiry proceedings from the Principal Civil Judge, Ramanagara and the High Court of Karnataka. The Company has filed a Special Leave Petition in the Honorable Supreme Court seeking vacation of the stay and directing the conduct of domestic enquiry. The case is yet to come up for hearing.
The Company has been paying subsistence allowance to the 25 suspended workmen, in terms of the Company’s Certified Standing Orders. The amounts paid in this regard aggregate to Rs. 3.714 millions for the current financial year, which has been charged to Statement of Profit and Loss. Pending outcome of the enquiry, it is not possible to quantify the liability arising on account of proceedings, if any at this stage. However, the Company does not expect any liability which may have a material impact on the financial statements for the year 2012-13.
Claims against company not acknowledged as debt	1.453	0.919

INDEX OF CHARGES

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

90200875

14/11/2003

92,000,000.00

U.F.J. BANK LIMITED

NEW DELHI BRANCH, UPPER GROUND FLOOR, MERCANTILE HOUSE, 15, KASTURBA GANDHI MARG, NEW DELHI – 110 001, INDIA

* Date of charge modification

FIXED ASSETS

· Leasehold Improvements

· Plant and Machinery

· Computer System

· Office Equipment

· Furniture and Fixtures

· Motor Vehicles

· Computer Software

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.61.46
UK Pound	1	Rs.98.99
Euro	1	Rs.84.72

INFORMATION DETAILS

Information Gathered by :	PDT

Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		45

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.

MIRA INFORM REPORT

(1.08)

7.27

(2.39)

(0.06)

0.00

1.34

Unit