MIRA INFORM REPORT

Report Date :

08.08.2014

IDENTIFICATION DETAILS

Name :	NHK AUTOMOTIVE COMPONENTS INDIA PRIVATE LIMITED (w.e.f December 2011)
Formerly Known As :	BCL SPRINGS DIVISON BOMBAY BURMAH TRADING COMPANY
Registered Office :	Plot No.31, Sector – 3, IMT, Manesar, Gurgaon – 122050, Haryana
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.07.2011
Com. Reg. No.:	05-043452
Capital Investment / Paid-up Capital :	Rs.400.000 Millions
CIN No.: [Company Identification No.]	U35900HR2011FTC043452
TAN No.: [Tax Deduction & Collection Account No.]	RTKN02964D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Automotive Springs.
No. of Employees :	250 (Approximately)

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 7100000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “NHK Spring Company Limited, Japan”. It is an established company having Satisfactory track. The company possesses an acceptable financial profile marked by adequate networth base along with stretched working capital cycle due to high inventory holding period on account of imported inventory. Management has witnessed a better growth in its sales volume whereas, has reported a consecutive loss for its second year as well during FY 13. The ratings also take into consideration, the competitive edge owing to technology support from parent entity which is a global leader in its field as well as the volatility in foreign exchange movement. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of financial and operational linkages with its parent entity, 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Short term fund based: A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	June 2013

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Abhay
Designation :	Account Manager
Contact No.:	9-240-6637000
Date :	07.08.2014

LOCATIONS

Registered Office :	Plot No.31, Sector – 3, IMT, Manesar, Gurgaon – 122050, Haryana, India
Tel. No.:	Not Available
Mobile No.:	91-9823322406 (Mr. A. K. Parlikar)
Fax No.:	Not Available
E-Mail :	akparlikar@nhk-bclsprings.com hashimoto@nhkspg.co.jp cs@skparekh.com aadeshmukh@nhk.bclspring.com kkartik@nhk-bclsprings.com
Website :	http://www.bclsprings.com
Location :	Owned
Head Office / Factory 1:	F-13, MIDC Industrial Area, Chikalthana, Aurangabad – 431210, Maharashtra, India
Tel No.:	91-240-6637000
Fax No.:	91-240-6637277
Email :	sales@nhk-bclsprings.com
Factory 2:	K-103 and 125, MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra, India
Tel No.:	91-240-2551328, 2553087
Fax No.:	91-240-2553088
Regional Office:	Located at · Chennai · Gurgaon · Malur

DIRECTORS

As on 20.09.2013

Name :

Mr. Toru Kadowaki

Designation :

Director

Address :

305-A, Hamiliton Court, DLF City, Phase – IV, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

26.04.1957

Date of Appointment :

20.07.2011

DIN No.:

02315634

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	U65993HR1996PLC034459	NHK SPRING INDIA LIMITED	Managing director	30/08/2008	30/08/2008	-	Active	NO
2	U35900HR2011FTC043452	NHK AUTOMOTIVE COMPONENTS INDIA PRIVATE LIMITED	Director	20/07/2011	20/07/2011	-	Active	NO
3	U34300HR2012FTC046555	NHK F. KRISHNA INDIA AUTOMOTIVE SEATING PRIVATE LIMITED	Director	23/07/2012	23/07/2012	-	Active	NO

Name :

Mr. Kazuya Matuoshima

Designation :

Director

Address :

5-9-4 lwato, Yokosuka, Kanagawa, 2390844, , JAPAN

Date of Birth/Age :

21.06.1958

Date of Appointment :

29.09.2012

DIN No.:

05148240

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	U35900HR2011FTC043452	NHK AUTOMOTIVE COMPONENTS INDIA PRIVATE LIMITED	Director	29/09/2012	09/01/2012	-	Active	NO
2	U34300HR2012FTC046555	NHK F. KRISHNA INDIA AUTOMOTIVE SEATING PRIVATE LIMITED	Director	23/07/2012	23/07/2012	17/06/2014	Active	NO

Name :

Kenji Nanseki

Designation :

Managing director

Address :

F-13, MIDC, Industrial Area" Chikalthana, Aurangabad - 431006, Maharashtra, India

Date of Birth/Age :

13.06.1958

Date of Appointment :

01.04.2013

DIN No.:

05243225

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	U35900HR2011FTC043452	NHK AUTOMOTIVE COMPONENTS INDIA PRIVATE LIMITED	Managing director	01/04/2013	03/03/2012	-	Active	NO

Name :

Masashi Chiba

Designation :

Director

Address :

Higiriyama, 3-5-5, Konan-Ku, Yokohama City 2330015

Date of Birth/Age :

20.03.1965

Date of Appointment :

01.04.2013

DIN No.:

06539366

Name :

Naoto Sakai

Designation :

Director

Address :

E-812, Maruyamadai, 1-2-1 Konan-Ku Yoxohama City 2330013

Date of Birth/Age :

04.08.1958

Date of Appointment :

16.04.2014

DIN No.:

06539383

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	U35900HR2011FTC043452	NHK AUTOMOTIVE COMPONENTS INDIA PRIVATE LIMITED	Director	16/04/2014	01/04/2013	-	Active	NO

Name :

Shinya Yamamoto

Designation :

Alternate director

Address :

F-13, MIDC, Industrial Area" Chikalthana, Aurangabad - 431006, Maharashtra, India

Date of Birth/Age :

08.04.1966

Date of Appointment :

16.04.2014

DIN No.:

06539388

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	U35900HR2011FTC043452	NHK AUTOMOTIVE COMPONENTS INDIA PRIVATE LIMITED	Alternate director	16/04/2014	01/04/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Abhay
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 20.09.2013

Names of Shareholders	No. of Shares
NHK Spring Company Limited, Japan	43336999
NHK Sprins (Hong Kong) Company Limited, Hong Kong	1
Total	43337000

Equity Share Break up (Percentage of Total Equity)

As on 20.09.2013

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Automotive Springs.
Exports :
Products :	Finished Goods
Countries :	· Brazil · France
Imports :
Products :	Raw Material
Countries :	· Korea · Japan
Terms :
Selling :	L/C, Cheque and Credit
Purchasing :	L/C, Cheque and Credit

GENERAL INFORMATION

Suppliers:

· Tata Steel

Customers :

Wholesalers, Retailers

· Mahindra

· Maruti

No. of Employees :

250 (Approximately)

Bankers :

· Axis Bank , Aurangabad Main Branch, Maharashtra, India

· ICICI Bank, Aurangabad Main Branch, Maharashtra, India

· HDFC Bank

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks	0.165	0.572
Total	0.165	0.572

Banking Relations :
Auditors :
Name :	Sudit K Parekh and Company Chartered Accountants
Address :	Ballard House, 2^nd Floor, Adi Marzaban Path, Ballard Pier, Fort, Mumbai- 400001, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFS4500P
Holding company:	· NHK Springs Company Limited, Japan

CAPITAL STRUCTURE

As on 20.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
55000000	Equity Shares	Rs.10/- each	Rs. 550.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
43337000	Equity Shares	Rs.10/- each	Rs. 433.370 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
55000000	Equity Shares	Rs.10/- each	Rs. 550.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs. 400.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	400.000	400.000
(b) Reserves & Surplus	1375.467	1580.385
(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)	1775.467	1980.385
(3) Non-Current Liabilities
(a) long-term borrowings	0.165	0.572
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.165	0.572
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	253.580	185.376
(c) Other current liabilities	22.837	21.201
(d) Short-term provisions	4.867	5.554
Total Current Liabilities (4)	281.284	212.131
TOTAL	2056.916	2193.088
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	517.986	448.212
(ii) Intangible Assets	799.131	1015.576
(iii) Capital work-in-progress	22.584	1.148
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	6.483	6.910
(d) Long-term Loan and Advances	18.082	10.294
(e) Other Non-current assets	0.268	0.102
Total Non-Current Assets	1364.534	1482.242
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	262.226	189.733
(c) Trade receivables	313.088	280.841
(d) Cash and cash equivalents	70.495	220.623
(e) Short-term loans and advances	44.507	19.326
(f) Other current assets	2.066	0.323
Total Current Assets	692.382	710.846
TOTAL	2056.916	2193.088

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2013	31.03.2012
TOTAL INCOME	1342.683	461.378
EXPENSES	1546.963	487.904
PROFIT/ (LOSS) BEFORE TAX	(204.490)	(26.527)
TAX	(0.428)	6.910
PROFIT/ (LOSS) AFTER TAX	(204.918)	(19.615)
Earnings / (Loss) Per Share (Rs.)	(4.73)	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
PAT / Total Income	(%)	(15.26)	(4.25)
Return on Total Assets (PBT/Total Assets}	(%)	(10.08)	(1.21)
Return on Investment (ROI) (PBT/Networth)		(0.12)	(0.01)
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.46	3.35

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	400.000	400.000
Reserves & Surplus	1580.385	1375.467
Net worth	1980.385	1775.467
long-term borrowings	0.572	0.165
Short term borrowings	0.000	0.000
Total borrowings	0.572	0.165
Debt/Equity ratio	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Total Income	461.378	1342.683
		191.016

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Total Income	461.378	1342.683
Profit	(19.615)	(204.918)
	(4.25%)	(15.26%)

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	Yes
10]	Designation of contact person	Yes
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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes

OPERATIONS

This is the Second operational year of the Company. During the year Company has incurred the net losses of Rs. 204.918 Millions. However the Board foresees good opportunity in the coming years.

BACKGROUND

Subject is a company incorporated in India under Companies Act, 1956. NHK is a subsidiary of NHK Spring Company Limited., Japan. The Company is engaged into manufacturing of automotive springs.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10332315	26/12/2011	150,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	B30733372

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Plant and equipment

· Plant and equipment

· Vehicles

· Office equipment

· Computer equipments

·

Intangible assets

· Goodwill

· Brands and trade marks

· Computer software

· Know-how

PRESS RELEASES

NHK SPRINGS TO SET UP BASE IN SRI CITY

Hyderabad, April 8: 

NHK Springs India Limited has started construction of their new plant in Sri City.

The Rs. 3000.000 Millions investment plant will come up on 18 acres for manufacturing of coil springs and stabiliser bars for the automobile industry. This is the second plant for the company in India after Manesar in Haryana, which was established in 1996.

NHK Springs of Japan is a manufacturer of automotive suspension components for passenger cars and utility vehicles. Its client base includes Toyota, Nissan, and Ford .

Toru Kadowaki, Managing Director, India, and other top executives were present at a function in the integrated Special Economic Zone in Nellore-Chittoor districts of Andhra Pradesh, a press release said.

“The unit inside Sri City envisages an investment of Rs. 3000.000 Millions with an initial employment of over 100 people which would be increased to 400,” said Toru Kadowaki, Sri City has emerged as a promising destination for Japanese companies to establish their manufacturing units especially in the auto ancillary and components Industry.

With the entry of NHK Springs, more auto components manufacturing companies will set up their facilities here, said Ravindra Sannareddy, Managing Director, Sri City.

NHK Springs India has accessed the know-how of the joint venture, NHK Spring Company Limited Japan for suspension components.

NHK Spring Company Limited was Japan’s first domestic producer of industrial springs. It has presence in 11 countries with 26 companies.

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.61.41
UK Pound	1	Rs.103.42
Euro	1	Rs.82.17

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--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	YES
--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.