MIRA INFORM REPORT

Report Date :

07.02.2014

IDENTIFICATION DETAILS

Name :	HYVA (INDIA) PRIVATE LIMITED (w.e.f. 24.01.2001)
Formerly Known As :	HYVA INDIA TRANSPORTATION SYSTEMS PRIVATE LIMITED
Registered Office :	Plot # EL – 215, M.I.D.C., Mahape, Navi Mumbai – 400701, Maharashtra
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	02.09.1996
Com. Reg. No.:	11-102299
Capital Investment / Paid-up Capital :	Rs.12.510 Millions
CIN No.: [Company Identification No.]	U50100MH1996PTC102299
TAN No.: [Tax Deduction & Collection Account No.]	MUMH07261C
PAN No.: [Permanent Account No.]	AAACH2006C
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is primarily engaged in fabrication of tipper bodies, tipping trailers, mounting/ installation of hydraulic systems, manufacturing of hydraulic cylinders, garbage compactors.
No. of Employees :	432 (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 9500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary company having a satisfactory track record. There appears some dip in profitability of the company during the financial year 2013. However, General financial position of the company seems to b sound and healthy. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. 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.

INDIAN ECONOMIC OVERVIEW

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus on providing payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

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 PARTED BY (General Details)

Name :	Mr. Rajan Kar
Designation :	Director
Contact No.:	91-22-67618888
Date :	06.02.2014

LOCATIONS

Registered/ Administrative Office/ Factory 1 :	Plot # EL – 215, M.I.D.C., Mahape, Navi Mumbai – 400701, Maharashtra, India
Tel. No.:	91-22-67618888/ 27610504/ 66165590/ 66165440/ 27671512/ 27672846/ 27635185
Fax No.:	91-22-27672846/ 27610504/ 27672182
E-Mail :	sudhirp@hyvaindia.com info@hyvaindia.com rajuk@hyvaindia.com asha@hyvaindia.com
Website :	http://www.hyvaindia.com
Location :	Owned
Factory 2 :	SY No 18, Balgaranhally, Attibely Industrial Estate, Hosur Main Road, Bangalore – 562107, Karnataka, India
E-Mail :	info@hyvaindia.com
Factory 3 :	C-23, 24, 25, 26, 29, 30 31, III Phase, Adityapur Industrial Estate, Adityapur Jamshedpur – 831013, Jharkhand, India
Tel. No.:	91-657-6541522
E-Mail :	info@hyvaindia.com
Sales Office 1 :	D. No: 7-1-613/14/A/201, Lakshmishree Complex, Amirpet – Hyderabad, Andhra Pradesh, India
Sales Office 2 :	C/o Sri Naga Motors (Hyva), No. 893, 1st Floor, Swaraj Building, MES Ring Road, Muthyalamma Nagar, Gokula Post, Bangalore – 560054, Karnataka, India
Tel. No.:	91-80-23454816
E-Mail :	sales@hyvaindia.com

DIRECTORS

(AS ON 29.06.2013)

Name :	Mr. Ranjan Kar
Designation :	Managing Director
Address :	B-12, Nidhi Chs, Sector 16-A, Vashi, Navi Mumbai – 400703, Maharashtra, India
Date of Appointment :	16.10.2012
PAN No.:	AADPK1453G
DIN No.:	06439953
Name :	Mr. Brice Henry Bricheateau de la Morandiere
Designation :	Director
Address :	B RUE DU VIEUX, Colombier, 75006, Paris, 06, Paris 75006, France
Date of Appointment :	13.10.2011
DIN No.:	05106756
Name :	Mr. Sudhir Govind Mhetre
Designation :	Alternate Director
Address :	Flat No. B-304, Raqmdev Complex, Sector – 19, Airoli, Navi Mumbai – 400708, Maharashtra, India
Date of Birth/Age :	21.043.1974
Date of Appointment :	23.06.2012
DIN No.:	02549626

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.06.2013)

Names of Shareholders	No. of Shares
Sudhir Madhav Prabhu	20
Hyva Transport Technik GMBH, Austria	1251000
Total	1251020

(AS ON 30.06.2013)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is primarily engaged in fabrication of tipper bodies, tipping trailers, mounting/ installation of hydraulic systems, manufacturing of hydraulic cylinders, garbage compactors.

Products :

Products Description	Item Code No.
Tipper Bodies	87079000
Hydraulic Kits with Cylinders	87082900

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

No. of Employees :	432 (Approximately)
Bankers :	· ABN Amro Bank N.A. 14, Veer Nariman Road, Now Shifted to, 7^th Floor, Sakhar Bhavan, Nariman Point, Mumbai – 400021, Maharashtra, India · Deutsche Bank Fort Branch, Mumbai, Maharashtra, India Tel No.:- 91-22-66584600 · Citi Bank N.A. Bandra Kurla Complex, G-Block, Bandra East, Mumbai – 400051, Maharashtra, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Cooper Chartered Accountants
Address :	252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400026, Maharashtra, India
PAN No.:	AAEFP3641G
Holding Company :	Ø Hyva Transporttechnik GmbH, Austria
Ultimate Holding Company :	Ø Hyva Holding B.V., Netherlands (upto April 13, 2011) Ø Hyva Global B.V., Netherlands (effective April 13, 2011)
Fellow Subsidiaries :	Ø Hyva do Brasil Hidráulica Limited, Brazil Ø Technamics B.V., Netherlands Ø Hyva Mechanics (Yang Zhou) Limited, China Ø Hyva Ibérica S.A., Spain Ø Georg Hydraulik GmbH, Germany Ø Hyva International B.V., Netherlands Ø Hyva Thailand Company Limited, Thailand Ø Technomet S.R.L, Italy Ø Amco Veba S.R.L., Italy Ø Ferrari International, Spa, Italy Ø Hyva (UK) Limited, United Kingdom Ø PY Hyva Indonesia, Indonesia

CAPITAL STRUCTURE

(AS ON 29.06.2013)

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1251020	Equity Shares	Rs.10/- each	Rs.12.510 Millions

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	12.510	12.510
(b) Reserves & Surplus	2354.944	2198.892
(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)	2367.454	2211.402
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	14.987	14.493
Total Non-current Liabilities (3)	14.987	14.493
(4) Current Liabilities
(a) Short term borrowings	115.492	78.176
(b) Trade payables	694.468	1370.097
(c) Other current liabilities	119.215	126.205
(d) Short-term provisions	30.957	45.967
Total Current Liabilities (4)	960.132	1620.445
TOTAL	3342.573	3846.340
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	345.246	379.231
(ii) Intangible Assets	7.901	7.282
(iii) Capital work-in-progress	0.988	1.820
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	59.671	52.894
(d) Long-term Loan and Advances	112.129	117.698
(e) Other Non-current assets	5.264	4.900
Total Non-Current Assets	531.199	563.825
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	786.202	1638.610
(c) Trade receivables	790.658	1136.461
(d) Cash and cash equivalents	901.703	120.222
(e) Short-term loans and advances	326.021	385.629
(f) Other current assets	6.790	1.593
Total Current Assets	2811.374	3282.515
TOTAL	3342.573	3846.340

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		12.510
2] Share Application Money		0.005
3] Reserves & Surplus		1819.406
4] (Accumulated Losses)		0.000
NETWORTH		1831.921
LOAN FUNDS
1] Secured Loans		3.366
2] Unsecured Loans		0.000
TOTAL BORROWING		3.366
DEFERRED TAX LIABILITIES		0.000
TOTAL		1835.287
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		336.136
Capital work-in-progress		37.301
INVESTMENT		0.000
DEFERREX TAX ASSETS		44.300
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	945.472
	Sundry Debtors	710.215
	Cash & Bank Balances	333.490
	Other Current Assets	1.713
	Loans & Advances	206.027
Total Current Assets		2196.917
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	592.594
	Other Current Liabilities	52.057
	Provisions	134.716
Total Current Liabilities		779.367
Net Current Assets		1417.550
MISCELLANEOUS EXPENSES		0.000
TOTAL		1835.287

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
	Income		5892.840	6700.580	5238.640
	Other Income		NA	NA	NA
	TOTAL		NA	NA	NA
Less	EXPENSES
	Office Expenses
	Administrative Expenses
	Advertising Expenses
	TOTAL		NA	NA	NA
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		334.690	660.880	659.570
	FINANCIAL EXPENSES		4.160	1.090	2.530
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		330.530	659.790	657.040
	DEPRECIATION/ AMORTISATION		95.260	93.350	75.960
	PROFIT BEFORE TAX		235.270	566.440	581.080
	TAX		79.220	186.950	206.060
	PROFIT AFTER TAX		156.050	379.490	375.020
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	NA	NA	94.458
		Commission	NA	NA	1.947
	TOTAL EARNINGS		NA	NA	96.405
	IMPORTS
		Raw Materials and Components	NA	NA	1161.639
		Stores & Spares	NA	NA	8.016
		Capital Goods	NA	NA	16.722
	TOTAL IMPORTS		NA	NA	1186.377
	Earnings Per Share (Rs.)		124.74	303.34	299.77

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
Net Profit Margin (PBT/Sales)	(%)	3.99	8.45	11.09
Return on Total Assets (PBT/Total Assets}	(%)	0.72	14.94	22.94
Return on Investment (ROI) (PBT/Networth)		0.10	0.26	0.32
Debt Equity Ratio (Total Debt/Networth)		0.05	0.04	0.00
Current Ratio (Current Asset/Current Liability)		2.93	2.03	2.82

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITY OF LONG TERM BORROWINGS DETAIL: NOT AVAILABLE

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 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	Yes
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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

Unsecured Loans	31.12.2012	31.12.2011
	(Rs. In Millions)
Short Term Borrowings
Working Capital Loans from Banks	A] 115.492	B] 78.176
Total	115.492	78.176
(A) Buyers Credit Loan from Banks (Secured by Promissory Note in favour of Bankers) (B) Bank Overdraft (Corporate Guarantee given by Hyva Holding Bv)

NOTE

The Registered Office of the company has been shifted from Plot # C-255, MIDC Pawane Village, Navi Mumbai – 400 705, Maharashtra, India, to the present address with effect from 23.12.2006.

FINANCIAL RESULTS

The company had set very ambitious goals for year 2012. The first quarter was very good perhaps the best in terms of customer demand. Post the first quarter, the entire industry witnessed a slowdown in mining and lackluster performance of infrastructure industry. The company performance for the year was below the targets. The road ahead looks full of challenges and the clouds of recession seem to be looming longer. They are sure that we shall conquer this phase through their abilities of teamwork, being agile and flexible and being decisive. The company registered a turnover of Rs.5,892.84 Million and PAT 156.05 in year 2012. Earning per share is 124.74 per share for a 10 rupee share.

BUSINESS SCENARIO

India continues to be an emerging global automotive power offering vast opportunities for Investment. The economic growth in India is expected to improve by the last quarter of 2013. GDP growth for 2013 for Indian economy is expected to be above 5%, and to further improve to above 6% in 2014. Industrial growth is also expected to be positive. A general election scheduled for Q2’ 2014 is widely perceived to be boosting consumption. The Company has been able to improve its market share with all it’s major customers. New OEM’s are entering into the manufacturing of commercial vehicles and adding more opportunities for the company.

BUSINESS OPERATIONS

Management is proposing to invest in a cylinder capacity over three stages. The primary reason is volume growth in India, additional product now made in India (UMB/E) and additional customers i.e. Daimler, Volvo and Scania. The investment is for an additional 40k cylinder capacity (10k 2013, 20k 2014, 10k 2016). The nature of capacity expansion allows incremental volume at varying levels of investment. This proposal ensures Hyva’s continued business with a growing customer base in the Indian market, and also allows our exports to grow significantly to emerging markets like MEA. The investment is $3.5M in tranches of $0.6M, $2.3M, $0.6M. Management is seeking approval for Tipper Factory at Chennai, which will mainly cater to Daimler. Total Capex requirement of $2.7 M will be invested out of internal accrual. Overall the project expected pay back is in 4th year and it´s NPV is $27.5 M @ 15,8% Discounting rates in 10 years.

COMPANY PROFILE

The Company is a Company incorporated under The Companies Act, 1956. The Company is primarily engaged in fabrication of tipper bodies, tipping trailers, mounting/ installation of hydraulic systems, manufacturing of hydraulic cylinders, garbage compactors. The Company has its own manufacturing facilities at Navi Mumbai and Pune in the state of Maharashtra, Bengaluru in the state of Karnataka and Jamshedpur in the state of Jharkhand.

CONTINGENT LIABILITIES

Particulars	31.12.2012 (Rs. In Millions)
Claims against the Company not acknowledged as debts:
(a) Service Tax Matters	11.141
(b) Excise Matters	99.581
(c) Wealth Tax	0.600
(d) Income Tax Matters	43.141
(e) Entry Tax	3.526
(f) Sales Tax	5.034
(g) Sales invoices discounted with the bank and outstanding at the year end	223.936

Notes:

i . Future cash outflows in respect of above, if any, are determined only on receipt of judgment/ decision pending with various ii. The Company has received demand of Rs.522.089 Millions towards excise duty from the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 against which, it has filed replies/ appeals the Management, the additional excise duty under these orders would aggregate to Rs.94.814 Millions, as against the excise duty of Rs.5220089 Millions demanded by the authorities. acknowledge the aforesaid amount computed by the Management. Based on legal advice obtained, the Company has a demand and accordingly, the amount of Rs.427.274 Millions is not considered as contingent is reimbursable from a customer, considering the confirmation received from the customer the customer towards this obligation.

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

FIXED ASSETS:

Intangible Assets

· Computer Software

Tangible Assets (Owned)

· Buildings on Leasehold Land

· Plant and Machinery

· Tools and Equipments

· Electrical Installations

· Office Equipments

· Computers

· Furniture and Fittings

· Vehicles

Tangible Assets (Leased)

· Leasehold Land

· Plant and Machinery

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.62.50
UK Pound	1	Rs.101.92
Euro	1	Rs.84.50

INFORMATION DETAILS

Information Gathered by :	HTL
Report Prepared by :	NIT

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	5
--PROFITABILIRY	1~10	4
--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	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		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.