MIRA INFORM REPORT

Report Date :

22.08.2014

IDENTIFICATION DETAILS

Name :	TAKATA INDIA PRIVATE LIMITED
Registered Office :	303, Building No.10159, Padam Singh Road , Karol Bagh, New Delhi – 110005
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.06.2007
Com. Reg. No.:	55-164995
Capital Investment / Paid-up Capital :	Rs. 1744.000 Millions
CIN No.: [Company Identification No.]	U32102DL2007FTC164995
TAN No.: [Tax Deduction & Collection Account No.]	DELT07367D
PAN No.: [Permanent Account No.]	AACCT7200N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Assembling of Automotive Airbag Modules, Seat Belts and Steering Wheels.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 2540000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has incurred a loss from its operations during 2013. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing with some cautions.

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 that 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.

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 DECLINED BY

Name :	Ms. Preeti
Designation :	Office Executive
Contact No.:	91-11-28755214
Date :	19.08.2014

LOCATIONS

Registered Office :	303, Building No.10159, Padam Singh Road , Karol Bagh, New Delhi – 110005, India
Tel. No.:	91-11-28755214
Fax No.:	Not Available
E-Mail :	sujeet.kumar@takata.co.jp arvind.agarwal@takata.co.jp
Website :	www.takata.com
Head Office :	Unit No.506, Spazedge, 5^th Floor, Tower B, Spaze Building, Sector-47, Gurgaon-Sohna Road, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-4289603
Fax No.:	91-124-4289604
Neemrana Plant :	SP2-48 to 51, New Industrial Complex, Majarakath, Neemrana, Alwar – 301705, Rajasthan, India
Tel. No.:	91-124-4289603
Fax No.:	91-124-4289604
Chennai Plant :	Survey No.43/4, 215-Thennur Village, Ammanambakkam Post, Chengalpattu Taluk, Kancheepuram District – 603002, Tamilnadu, India
Tel. No.:	91-44-27421312
Fax No.:	91-44-27420921
Branch Office :	SCO-19, 1^stFloor, Sector 15, Part II, Gurgaon – 122001, Haryana, India
Tel. No.:	91-124-4289603
Fax No.:	91-124-4289608
E-Mail :	contact@takata.co.jp
Warehouse :	Located at: v Noida

DIRECTORS

As on 28.09.2013

Name :

Seshadri Sarathi

Designation :

Nominee Director

Address :

G2, Melody Gastle, No.3, Soundrapandian Salai, Ashok Nagar, Chennai – 600083, Tamilnadu, India

Date of Birth/Age :

05.03.1968

Date of Appointment :

28.09.2013

DIN No. :

01639258

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	U65993MH1966PTC206200	ASIA INVESTMENTS PRIVATE LIMITED	Director	29-03-2004	29-03-2004	16-01-2008	Active	NO
2	U29130TN1997FTC037962	FAURECIA EMISSIONS CONTROL TECHNOLOGIES INDIA PRIVATE LIMITED	Alternate director	13-09-2013	09-07-2007	13-09-2013	Active	NO
3	U29309TN1997PLC038508	VALEO FRICTION MATERIALS INDIA LIMITED	Director	12-07-2010	16-03-2010	-	Active	NO
4	U35999TN1997PLC039028	MANDO INDIA LIMITED	Director	18-03-2010	18-03-2010	-	Amalgamated	NO
5	U35914PN2001FTC015991	YUTAKA AUTOPARTS PUNE Private LIMITED	Additional director	24-01-2011	24-01-2011	-	Amalgamated	NO
6	U85110DL1981PLC191868	DYTEK INDIA LIMITED	Director	27-09-2012	04-07-2012	-	Active	NO
7	U50300TN2006FLC061618	MANDO AUTOMOTIVE INDIA LIMITED	Director	14-06-2013	09-01-2013	19-03-2014	Active	NO
8	U32102DL2007FTC164995	TAKATA INDIA PRIVATE LIMITED	Nominee director	28-09-2013	26-03-2013	-	Active	NO
9	U74999MH1975PLC206199	ANAND AUTOMOTIVE LIMITED	Additional director	18-04-2013	18-04-2013	-	Active	NO

Name :

Daniel Cho Fai Yip

Designation :

Director

Address :

7, Holt Road, # 07-04, Singapore 249445

Date of Birth/Age :

10.10.1959

Date of Appointment :

20.06.2007

DIN No.:

01871694

Name :

Yogai Motoo

Designation :

Nominee Director

Address :

118-3-1A, Ziyun-LU, Shanghai, 200000, China

Date of Birth/Age :

07.02.1972

Date of Appointment :

28.09.2013

DIN No. :

06570662

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	U32102DL2007FTC164995	TAKATA INDIA PRIVATE LIMITED	Nominee director	28-09-2013	01-05-2013	Active	NO

Name :

Tsutomu Miyama

Designation :

Managing Director

Address :

91, Westend Heights, DLF, Phase 5, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

27.10.1976

Date of Appointment :

08.01.2014

DIN No.:

06782300

Name :

Stefan Stocker

Designation :

Nominee director

Address :

Oelbergstrabe 3, 8200, Schaffhausen, 8200

Date of Birth/Age :

25.12.1953

Date of Appointment :

01.11.2013

DIN No.:

06719522

KEY EXECUTIVES

Name :	Mr. Sujeet Kumar
Designation :	Secretary
Address :	C-137, National Apartment, Plot No.4, Sector-3, Dwarka, New Delhi – 110075, India
Date of Birth/Age :	22.09.1970
Date of Appointment :	01.09.2010
PAN No.:	AAJPK0878R
Name :	Ms. Preeti
Designation :	Office Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Asia Investments Private Limited, India	43600000	25.00
Takata International Finance B.V., Netherlands	130800000	75.00
Total	174400000	100.00

As on 28.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	75.00
Bodies corporate	25.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Assembling of Automotive Airbag Modules, Seat Belts and Steering Wheels.

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Address :	Golf View, Corporate Tower B, Near DLF Golf Course, Gurgaon - 122002, Haryana, India
Income-tax PAN of auditor or auditor's firm :	AALFS0506L
Holding Company :	Takata international finance B.V., Netherlands
Ultimate Holding Company :	Takata Corporation, Japan
Fellow Subsidiary Companies :	· Takata Toa Company Limited, Thailand Takata Petri AG, Germany Takata Petri SA, Brazil Takata-Petri (Sachsen) GMBH Takata Petri Romania S.R.L. Takata-Petri Sibiu SRL Takata Holding Inc., USA TK Holding Inc-EPDC Takata Safety Automotive Indonesia Takata De Mexico. S.A. De C.V. Takata (Shanghai) Automotive Comp Company Limited Takata Automotive Electronics (Shanghai) Company Limited Takata (Philippines) Corporation Takata Korea Company Limited Takata (Changxing) Safety Systems Company Limited
Joint Venturer :	Asia Investments Private Limtied
Related Parties of Joint Venturer :	Anand Automotive Limtied (Holding company of Joint Venturer)

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
180,000,000	Equity Shares	Rs.10/- each	Rs. 1800.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
174,400,000	Equity Shares	Rs.10/- each	Rs. 1744.000 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	1744.000	800.000	800.000
(b) Reserves & Surplus	(1108.020)	(788.600)	(258.155)
(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)	635.980	11.400	541.845
(3) Non-Current Liabilities
(a) long-term borrowings	401.709	763.125	725.115
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	645.000	645.000	0.000
(d) long-term provisions	5.164	3.754	1.940
Total Non-current Liabilities (3)	1051.873	1411.879	727.055
(4) Current Liabilities
(a) Short term borrowings	400.083	331.882	199.790
(b) Trade payables	587.348	448.264	592.321
(c) Other current liabilities	254.194	545.574	217.559
(d) Short-term provisions	16.412	0.243	0.231
Total Current Liabilities (4)	1258.037	1325.963	1009.901
TOTAL	2945.890	2749.242	2278.801
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1384.861	1390.338	1058.282
(ii) Intangible Assets	9.308	9.661	6.003
(iii) Capital work-in-progress	0.000	0.000	17.350
(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	0.000
(d) Long-term Loan and Advances	156.027	238.611	147.692
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1550.196	1638.610	1229.327
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	457.156	372.721	374.335
(c) Trade receivables	468.852	319.484	336.512
(d) Cash and cash equivalents	55.689	218.075	156.474
(e) Short-term loans and advances	392.696	189.355	172.053
(f) Other current assets	21.301	10.997	10.100
Total Current Assets	1395.694	1110.632	1049.474
TOTAL	2945.890	2749.242	2278.801

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2071.000	1580.000	1426.410
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX		NA	NA	NA
Less	TAX		NA	NA	NA
	PROFIT/ (LOSS) AFTER TAX		(307.700)	(510.100)	(136.840)
	Earnings / (Loss) Per Share (Rs.)		(1.76)	(6.38)	(1.71)

KEY RATIOS

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Debt Equity Ratio (Total Debt/Networth)	1.26	96.05	1.71
Current Ratio (Current Asset/Current Liability)	1.11	0.84	1.04

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	800.000	800.000	1744.000
Reserves & Surplus	(258.155)	(788.600)	(1108.020)
Net worth	541.845	11.400	635.980
long-term borrowings	725.115	763.125	401.709
Short term borrowings	199.790	331.882	400.083
Total borrowings	924.905	1095.007	801.792
Debt/Equity ratio	1.707	96.053	1.261

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1426.410	1580.000	2071.000
		10.768	31.076

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1426.410	1580.000	2071.000
Profit	(136.840)	(510.100)	(307.700)
	(9.59%)	(32.28%)	(14.86%)

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	No
24]	Banking facility details	No
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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Foreign currency term loans from banks	162.855	305.250
Other external commercial borrowings	238.854	457.875
SHORT TERM BORROWINGS
Working capital loans from banks	400.083	331.882
Total	801.792	1095.007

CHANGE OF ADDRESS

The registered office of the company has been shifted from 2^nd Floor, B - 7/7, Safdarjang Enclave, New Delhi – 110029 to the present address w.e.f. 01.07.2008.

NATURE OF OPERATIONS

The Company was incorporated on June 20, 2007. The Company is into manufacturing and assembling of automotive airbag modules, seat belts and steering wheels. The Company has its manufacturing facility at Thenur village, Chennai and at Neemrana, Rajasthan and its head office is in Gurgaon.

ECONOMIC SCENARIO/ INDIAN AUTOMOTIVE INDUSTRY

Compared with the previous year, the Indian economy showed clear slow -down in the year under report with GDP growth registering below 5 % as against 6.5% in the previous year. Of even greater concern was the decline of GDP to 4.8% in the fourth quarter of year 2012-13. This was as a result of several domestic as well as international factors. These include high interest rates, continued highinflation, weakening Indian Rupee, rising petrol prices, no new policy initiatives and growing European financial concerns etc.

With such bearish trends, the overall Indian automotive sales market slowed down significantly, with growth of 0%, as against 9% in the previous year. This was despite manyvehicle manufacturers including Maruti ,Toyota, Nissan, Renault, Honda, Volkswagen, GM vigorously introducing new models, specially in compact car range , and expanding their capacities.

During the year, the Company has continued to pursue new business developments and opportunities. They are glad to report that additional business has been secured for one or more of the products, namely, seat belts, steering wheels, DAB, PAB and ECU from the Company's two main customers, namely,Honda and Renault -Nissan. The Company was also able to secure business for Hyundai Mobis, Toyota and Maruti Suzuki for which SOP planning is under process.

DEVELOPMENTS CONCERNING THE COMPANY

The Company's main manufacturing Plant at Thenur near Chennai has continued to bethe mainstay of production during the year. QCC activities in this Plant, undertaken on a systematic and continuous basis, showed very satisfactory results. The Company's second Plant at Neemrana (Rajasthan) which commenced commercial production in October 2010 has been meeting the requirements of Honda. In near future, this Plant which will also cater to the requirements of some other customers such as Maruti Suzuki, Ashok Leyland and Volvo.

The availability of good engineering and technical capabilities in India on cost effective basis, it ha dset up Technology and R and D Center within Chennai Plant facilities to serve the needs of Indian operations as well as Asian region. These activities would be taken up in a phased manner.

COMMERCIAL OPERATIONS

During the year, Net Sales of the Company were Rs. 2071.000 millions, which compared with Rs. 1580.000 millions in the previous year, show an increase of 31 %. However, as against budget of Rs. 2724.000 millions, these showed negative variance of 24%. This was mainly due to substantial sales loss to Honda.

During the year, Net Loss of the Company was Rs. 307.700 millions compared with Rs. 510.100 millions in the previous year. As against budget of Rs. 86.000 million loss, net loss stood at 307.700 Millions showing negative variance of 222.000 Millions approx. This was mainly due to substantial sales loss to Honda. Much higher raw material costs coupled with foreign exchange translation losses on Account Payables due to weakening of Indian Rupee are the main reasons for increased losses. Provisioning for higher depreciation and amortization also accounted for increased losses. Management has initiated and is continuously reviewing steps to curtail raw material costs and other expenses.

FIXED ASSETS

Tangible Assets

· Land

Buildings

Plant and Equipment

Factory Equipments

Furniture and Fixtures

Vehicles

Motor Vehicles

Office Equipment

Computer Equipments

Other Equipments

Intangible Assets

· 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.60.77
UK Pound	1	Rs.100.72
Euro	1	Rs.80.56

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		26

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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.