MIRA INFORM REPORT

Report Date :

13.09.2013

IDENTIFICATION DETAILS

Name :	NTN NEI MANUFACTURING INDIA PRIVATE LIMITED (w.e.f.16.01.2009)
Formerly Known As :	NTN MANUFACTURING INDIA PRIVATE LIMITED (w.e.f.23.12.2005) unique components private limited
Registered Office :	715-716, international Trade tower, Nehru Place, New Delhi – 110019
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.09.2005
Com. Reg. No.:	55-140968
Capital Investment / Paid-up Capital :	Rs. 1875.000 Millions
CIN No.: [Company Identification No.]	u34300DL2005PTC140968
TAN No.: [Tax Deduction & Collection Account No.]	deln07430d
PAN No.: [Permanent Account No.]	aaccn2241b
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Constant Velocity Joints.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 4880000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appear some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In view of strong holding company, the subject can be considered for business dealings with some cautions Profit and Loss account for the year 2012 is not available.

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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 :	715-716, international Trade tower, Nehru Place, New Delhi – 110019, India
Tel. No.:	91-11-41513235/ 41513237
Fax No.:	91-11-41513236
E-Mail :	ag_ajaygarg@yahoo.co.in pcnayak@ntnindia.in
Website :	http://www.ntn.co.jp
Factory 1 :	Plot No. 131, Sector 7, HSIDC Growth Centre, Bawal, District Rewari - 123501, Haryana, India
Tel. No.:	91-1284-264024/ 264188-92/ 264019–20/ 264191
Fax No.:	91-1284-264011/ 264049
Factory 2 :	Plot No. P48/1, Domestic Tariff Area, Mahindra World City, Chengelpet Taluk, Kancheepuram, Chennai – 603002, Tamilnadu, India

DIRECTORS

AS ON 27.09.2012

Name :

Mr. Rohit Saboo

Designation :

Director

Address :

14A, Sangram Colony, C Scheme, Jaipur - 302001, Rajasthan, India

Date of Birth/Age :

01.02.1967

Date of Appointment :

25.08.2008

DIN No.:

00086846

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	U31300RJ1988PTC004446	VENKATESWARA WIRES PRIVATE LIMITED	Director	16/05/1988	16/05/1988	-	Active	NO
2	U14101RJ1992PTC006940	MLS EXPORTS AND TRADING PRIVATE LIMITED	Director	08/09/1992	08/09/1992	-	Active	NO
3	U74899DL1961PLC003394	INDIAN ROCKWOOL COMPANY LIMITED	Director	18/12/2000	18/12/2000	17/08/2007	Active	NO
4	U31300RJ2004PTC019802	ROYAL CON-CAB PRIVATE LIMITED	Director	24/11/2004	24/11/2004	-	Active	NO
5	U51101RJ1948PLC000752	UNIVERSAL TRADING COMPANY LIMITED	Director	20/07/2009	17/06/2008	-	Active	NO
6	U67120RJ1943PTC000137	JAIPUR FINANCE AND DIARY PRODUCTS PRIVATE LIMITED	Director	04/08/2008	04/08/2008	-	Active	NO
7	U34300DL2005PTC140968	NTN NEI MANUFACTURING INDIA PRIVATE LIMITED	Director	25/08/2008	25/08/2008	-	Active	NO
8	U14219RJ1949PLC000700	RAJASTHAN INDUSTRIES LIMITED	Director	20/07/2009	05/09/2008	-	Active	NO
9	U72900DL2010PLC197773	BIRLA SOFT LIMITED	Director	07/01/2010	07/01/2010	-	Active	NO

Name :

Yutaka Tanigaki

Designation :

Director

Address :

Flat No.505, Ivory Court – I, Essel Tower, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

31.10.1957

Date of Appointment :

15.09.2009

PAN No.:

AIVPT7938H

DIN No.:

02624716

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	U34300DL2005PTC140968	NTN NEI MANUFACTURING INDIA PRIVATE LIMITED	Director	15/09/2009	24/04/2009	Active	NO
2	U35900TN2011FTC083805	NTN BEARING INDIA PRIVATE LIMITED	Director	29/12/2011	29/12/2011	Active	NO

Name :

Yukiyoshi Hagimoto

Designation :

Director

Address :

Kantary Bay Hotel and Services Apartments, 17-2 17-3 Jerm Jompon Road, Sriracha Chonburi – 020110, Thailand

Date of Birth/Age :

23.02.1952

Date of Appointment :

29.09.2011

DIN No.:

03404495

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	U34300DL2005PTC140968	NTN NEI MANUFACTURING INDIA PRIVATE LIMITED	Director	29/09/2011	17/02/2011	-	Active	NO
2	U35900TN2011FTC083805	NTN BEARING INDIA PRIVATE LIMITED	Director	29/12/2011	29/12/2011	31/07/2013	Active	NO

Name :

Noboru Miyauchi

Designation :

Director

Address :

M 2906, Ashiana Aangan, Bhiwadi, Alwar – 301019, Rajasthan, India

Date of Birth/Age :

07.01.1959

Date of Appointment :

29.09.2011

PAN No.:

BGMPM0372G

DIN No.:

03474746

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	U34300DL2005PTC140968	NTN NEI Manufacturing India Private Limited	Director	29/09/2011	01/04/2011	Active	NO

Name :

Eiichi Ukai

Designation :

Additional director

Address :

66 Havelock Road # 02-01 River Place Tower C1 Singapore 169661

Date of Birth/Age :

01.02.1957

Date of Appointment :

29.08.2013

DIN No.:

06646508

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	U35900TN2011FTC083805	NTN BEARING INDIA PRIVATE LIMITED	Additional director	31/07/2013	31/07/2013	Active	NO
2	U34300DL2005PTC140968	NTN NEI MANUFACTURING INDIA PRIVATE LIMITED	Additional director	29/08/2013	29/08/2013	Active	NO

Name :

Masaki Ogame

Designation :

Additional director

Address :

15-2, Higashi-Hiramatsu Iwata-Shi Shizuoka 4380211

Date of Birth/Age :

13.10.1959

Date of Appointment :

05.03.2013

DIN No.:

06504508

KEY EXECUTIVES

Name :	Mr. Pravash Chandra Nayak
Designation :	Secretary
Address :	QN-1743, Lodhi Road Complex, New Delhi – 110003, India
Date of Birth/Age :	02.01.1969
Date of Appointment :	21.04.2008
PAN No.:	ADEPN0998D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2012

Names of Shareholders	No. of Shares
NTN Corporation Japan	1749950
NTN Bearing Singapore	50
National Engineering Industries Limited, India	125000
Total	1875000

AS ON 03.06.2013

Names of Allottee	No. of Shares
NTN Corporation Japan	1363000
Total	1363000

AS ON 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	93.33
Bodies corporate	6.67
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Constant Velocity Joints.

Products/ Services :

ITC Code No.	Product Descriptions
87085000	Constant Velocity Joint

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Other loans and advances	1.067	0.000
SHORT TERM BORROWINGS
Loans taken for fixed assets	0.000	0.066
Total	1.067	0.066

Banking Relations :	--
Auditors :
Name :	S.V Ghatalia and Associates Chartered Accountants
Address :	Goly View, Corporate Tower-B, Sector 42, Sector Road Gurgaon - 122002, Haryana, India
Income-tax PAN of auditor or auditor's firm :	AAAAA1000A
Holding company :	NTN Corporation Japan
Fellow Subsidiary company :	· Guangzhou NTN Yulon Derivation Company Limited, China · NTN Manufacturing (Thailand) Corporation Limited · NTN Technical Service Corporation · NTN Korea Corporation Limited

CAPITAL STRUCTURE

AFTER 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3,238,000	Equity Shares	Rs. 1000/- each	Rs. 3238.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,238,000	Equity Shares	Rs. 1000/- each	Rs. 3238.000 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,875,000	Equity Shares	Rs. 1000/- each	Rs. 1875.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,875,000	Equity Shares	Rs. 1000/- each	Rs. 1875.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1875.000	1275.000
(b) Reserves & Surplus	(654.899)	(446.922)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1220.101	828.078
(3) Non-Current Liabilities
(a) long-term borrowings	407.391	431.087
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	12.468	10.948
(d) long-term provisions	2.109	1.745
Total Non-current Liabilities (3)	421.968	443.780
(4) Current Liabilities
(a) Short term borrowings	0.000	0.066
(b) Trade payables	780.494	176.552
(c) Other current liabilities	749.021	227.010
(d) Short-term provisions	13.040	5.749
Total Current Liabilities (4)	1542.555	409.377
TOTAL	3184.624	1681.235
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	958.208	856.192
(ii) Intangible Assets	2.700	3.564
(iii) Capital work-in-progress	1031.291	141.338
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	267.081	269.977
(e) Other Non-current assets	1.350	0.724
Total Non-Current Assets	2260.630	1271.795
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	375.719	197.470
(c) Trade receivables	301.916	104.967
(d) Cash and cash equivalents	90.986	101.349
(e) Short-term loans and advances	155.329	5.628
(f) Other current assets	0.044	0.026
Total Current Assets	923.994	409.440
TOTAL	3184.624	1681.235

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		925.000
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(301.771)
NETWORTH		623.229
LOAN FUNDS
1] Secured Loans		0.216
2] Unsecured Loans		273.588
TOTAL BORROWING		273.804
DEFERRED TAX LIABILITIES		0.000
TOTAL		897.033
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		649.526
Capital work-in-progress		23.111
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	120.985
	Sundry Debtors	29.383
	Cash & Bank Balances	78.104
	Other Current Assets	0.005
	Loans & Advances	138.483
Total Current Assets		366.960
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	124.447
	Other Current Liabilities	11.079
	Provisions	7.038
Total Current Liabilities		142.564
Net Current Assets		224.396
MISCELLANEOUS EXPENSES		0.000
TOTAL		897.033

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		842.053	531.870
		Other Income		5.761	57.276
		TOTAL (A)	NA	847.814	589.146
Less	EXPENSES
		Purchase of Trading goods			12.651
		Raw Material Consumed			414.532
		Personnel Expenses			44.897
		Operating and Other Expenses			86.184
		Impairment Loss / (Reversal)			(205.468)
		(Increase) / Decrease in stock			(15.033)
		TOTAL (B)	NA	992.964	337.763
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			[Including Financial and Depreciation Expenses]	251.383
Less	FINANCIAL EXPENSES (D)				3.973
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)				247.410
Less/ Add	DEPRECIATION/ AMORTISATION (F)				47.963
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		NA	(145.150)	199.447
Less	TAX (H)		NA	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		NA	(145.150)	199.447
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	641.668	1.229	NA
	Earnings/ (Loss) Per Share (Rs.)		NA	(113.84)	215.62

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	(17.12)	33.85
Net Profit Margin (PBT/Sales)	(%)	NA	(17.24)	37.50
Return on Total Assets (PBT/Total Assets}	(%)	NA	(9.43)	19.62
Return on Investment (ROI) (PBT/Networth)		NA	(0.18)	0.32
Debt Equity Ratio (Total Debt/Networth)		0.33	0.52	0.44
Current Ratio (Current Asset/Current Liability)		0.60	1.00	2.57

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 two years	Yes
12]	Profitability for last two 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	No
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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Term loans from banks	406.234	431.087
Total	406.234	431.087

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer software

PRESS RELEASE

2ND PRODUCTION BASE ESTABLISHED IN SOUTHERN INDIA

[Production of CVJs and 3rd generation hub bearings to begin in April 2012]

March 3, 2011

NTN Corporation (hereafter, NTN) will establish the NTN NEI Manufacturing India Private Limited (NNMI) Chennai Plant in Chennai, southern India as its 2nd production base in India. The plant is expected to begin sales and production of constant velocity joints (CVJs) and 3rd generation hub bearings in April 2012.

To signal the start of construction, a ground-breaking ceremony was held in the planned area of construction on February 16 in the Mahindra World City industrial area near Chennai.

A large number of guests were invited to the ceremony, including Japanese Consul-general of Chennai Mr. Minagawa and the Branch Manager of the JETRO Chennai office. A ground-breaking ceremony and traditional Indian Puja (a form of prayer) was conducted in front of approximately 40 guests to wish for safe construction of the plant and trouble-free launch of operations. The Consul-general offered his congratulations as he “welcomed the construction of the NTN plant following the tight supply of parts amidst the rapid growth of the automotive market in India.”

NTN already produces CVJs at its Bawal Plant in northern India. The Chennai Plant is the 2nd plant that NTN will establish and operate in India, where unprecedented economic growth and greater demand for vehicles show signs of continuing. The plant will be used to increase production of CVJs and start production of new 3rd generation hub bearings for automotive manufacturers located in the southern region of India.

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. 63.67
UK Pound	1	Rs. 100.71
Euro	1	Rs. 84.72

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.