MIRA INFORM REPORT

Report Date :

07.01.2014

IDENTIFICATION DETAILS

Name :	FAURECIA EMISSIONS CONTROL TECHNOLOGIES INDIA PRIVATE LIMITED [w.e.f. 06.05.2010]
Formerly Known As :	EMCON TECHNOLOGIES INDIA PRIVATE LIMITED (w.e.f. 01.08.2007) ARVIN EXHAUST INDIA PRIVATE LIMITED
Registered Office :	Fagun Mansion, 26 C-IN-C Road, Chennai-600008, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	11.04.1997
Com. Reg. No.:	18-037962
Capital Investment / Paid-up Capital :	Rs.140.000 Millions
CIN No.: [Company Identification No.]	U29130TN1997FTC037962
TAN No.: [Tax Deduction & Collection Account No.]	CHEA02562A
PAN No.: [Permanent Account No.]	AAACA8450F
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in the business of manufacture of automotive exhaust systems, technical and related design services
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears some dip in the profits of the company during current year. However, general financial position of the company is satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered normal 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

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:	Fagun Mansion, 26 C-IN-C Road, Chennai – 600 008, Tamilnadu, India
Tel. No.:	91-44-67404999
Fax No.:	91-44-27464646
E-Mail :	jagadish.ram@emcontechnologies.com jagdish.ram@faurecia.com
Website :	http://www.emcontechnologiesindia.com http://www.faurecia.com
Factory:	#86/1, Kumbalagodu Industrial Area, Phase II, Mysore Road, Bangalore – 560 074, Karnataka, India
Tel No.:	91-80-28437092/93/94
Branch Office :	17 and 18, Sengindram Industrial Area, Melrosapuram, S.P. Koil Post – 603 204, Kancheepuram District, India
Tel. No.:	91-44-67404999, 27464640, 27464633 , 27464620
Fax No.:	91-44-27464620

DIRECTORS

AS ON 28.09.2013

Name :

Mr. Venkatesh Madhavan

Designation :

Director

Address :

4A, Mauli Towers, 92 CP Ramasamy Road, Alwarpet, Chennai – 600 018, Tamilnadu, India

Date of Birth/Age :

15.05.1962

Date of Appointment :

15.06.2012

DIN No.:

00104932

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	U28910DL1991PTC127698	ANAND TECHNOLOGY RESOURCE PARK PRIVATE LIMITED	Director	13/10/2004	13/10/2004	Amalgamated	NO
2	U35999TN1997PLC039028	MANDO INDIA LIMITED	Managing director	01/01/2011	23/08/2006	Amalgamated	NO
3	U29130TN1997FTC037962	FAURECIA EMISSIONS CONTROL TECHNOLOGIES INDIA PRIVATE LIMITED	Director	15/06/2012	15/06/2012	Active	NO
4	U50300TN2006FLC061618	MANDO AUTOMOTIVE INDIA LIMITED	Additional director	20/08/2013	20/08/2013	Active	NO

Name :

Mr. Mahendra Kumar Goyal

Designation :

Director Appointed in Casual Vacancy

Address :

18, Anand Farm, 25.3 KM, Palam Gurgaon Road, Gurgaon – 122 016, Haryana, India

Date of Birth/Age :

01.11.1969

Date of Appointment :

14.06.2013

DIN No.:

02605616

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	U74999MH1975PLC206199	ANAND AUTOMOTIVE LIMITED	Managing director	01/04/2012	20/01/2009	28/06/2013	Active	NO
2	U99999MH1962PLC012316	PERFECT CIRCLE INDIA LIMITED	Director	29/07/2009	27/05/2009	-	Active	NO
3	U29199HR2006PLC043262	FEDERAL-MOGUL BEARINGS INDIA LIMITED	Director	02/06/2009	02/06/2009	-	Active	NO
4	U29309TN1997PLC038508	VALEO FRICTION MATERIALS INDIA LIMITED	Director	27/09/2013	09/06/2009	-	Active	NO
5	U34300PN1997PLC107619	BEHR INDIA LIMITED	Alternate director	07/08/2010	13/08/2009	15/12/2010	Active	NO
6	U99999MH1998PLC118876	HALDEX INDIA LIMITED	Director	30/09/2009	30/09/2009	14/06/2013	Active	NO
7	U34300MH1993PLC073227	SPICER INDIA LIMITED	Director	08/12/2009	08/12/2009	25/06/2013	Active	NO
8	U24222HR1996PLC033371	HENKEL TEROSON INDIA LIMITED	Director	27/09/2013	10/12/2009	-	Active	NO
9	U29117PN2001PLC018092	VICTOR GASKETS INDIA LIMITED	Director	27/07/2010	08/02/2010	-	Active	NO
10	U74899DL1966PLC004919	MAHLE FILTER SYSTEMS (INDIA) LIMITED	Alternate director	29/11/2012	02/06/2010	29/11/2012	Active	NO
11	U51909DL1992PLC049978	CHANG YUN INDIA LIMITED	Director	25/07/2012	30/03/2011	22/07/2013	Active	NO
12	L34101PN1961PLC015735	GABRIEL INDIA LIMITED	Director appointed in casual vacancy	27/05/2011	27/05/2011	25/10/2013	Active	NO
13	U50100TN2012PTC084043	VALEO SERVICE INDIA AUTO PARTS PRIVATE LIMITED	Director	25/09/2013	13/04/2012	-	Active	NO
14	U29130TN1997FTC037962	FAURECIA EMISSIONS CONTROL TECHNOLOGIES INDIA PRIVATE LIMITED	Director appointed in casual vacancy	14/06/2013	14/06/2013	-	Active	NO

Name :

Mr. Thierry Paul Robert Clement Depoux

Designation :

Director

Address :

06, Avenue Lazare Hoche, Chaville, France – 92370

Date of Birth/Age :

05.11.1962

Qualification :

MBA

Date of Appointment :

19.03.2010

DIN :

3041072

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	U29130TN1997FTC037962	FAURECIA EMISSIONS CONTROL TECHNOLOGIES INDIA PRIVATE LIMITED	Director	30/09/2011	19/03/2010	Active	NO
2	U35914PN2001FTC015991	YUTAKA AUTOPARTS PUNE PRIVATE LIMITED	Director appointed in casual vacancy	24/01/2011	24/01/2011	Amalgamated	NO

Name :

Mr. Seung Kyu Lee

Designation :

Director Appointed in Casual Vacancy

Address :

953, Jyung-ki-do, Yong In, South Korea – 446908

Date of Birth/Age :

08.07.1955

Qualification :

MBA

Date of Appointment :

08.06.2011

DIN :

03529687

Name :

Mr. Joel Fernand Carvalho

Designation :

Director Appointed in Casual Vacancy

Address :

43, Rue Pasteur, La Norville, France – 91290

Date of Birth/Age :

21.02.1975

Date of Appointment :

13.06.2013

DIN No.:

06630152

KEY EXECUTIVES

Name :	Mr. Jagadish Ram Chandrasekaran
Designation :	Secretary
Address :	No. 2, Bhavani Street, Bharath Nagar, Adambakkam, Chennai – 600 088, Tamilnadu, India
Date of Birth/Age :	27.06.1984
Date of Appointment :	31.03.2009
PAN No :	AHRPJ5072H
Name :	Mr. Mahendra Arivnd Killedar
Designation :	Manager
Address :	205, Kumar Paritosh, Karvenagar, Near Corporation Bank, Pune – 411 052, Maharashtra, India
Date of Birth/Age :	30.10.1968
Date of Appointment :	03.06.2010
PAN No :	ABRPK8633M

MAJOR SHAREHOLDERS

AS ON 28.09.2013

Names of Shareholders	No. of Shares
Faurecia Emissions Control Systems Korea Company Limited, South Korea	10360000
Asia Investments Private Limited, India	3640000
Total	14000000

Equity Share Break up (Percentage of Total Equity)

AS ON 28.09.2013

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	74.00
Bodies corporate	26.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the business of manufacture of automotive exhaust systems, technical and related design services

Products :

Product Description	Item Code No.
Muffler assembly (Exhaust Pipe) CAT convertor and Down pipes side Impact beam Instrumental Panel Assembly	8708 92 00

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Muffler Assembly	Nos.	600000	207704
CAT Convertor and Down Pipes	Nos.	600000	221023
Side Impact Beam	Nos.	0.000	585
Instrument Panel Assembly	Nos.	210000	73236

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Axis Bank Limited, CMC, First Floor, Karumuthu Nilayam, No. 192, Anna Salai, Chennai – 600 002, Tamilnadu, India.

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India.

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term Loans from Banks	131.330	193.440
Short Term Borrowings
Term Loans from Banks	10.000	0.000
Loans repayable on Demand	98.900	70.070
Total	240.230	263.510

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	8^th Floor, Prestige Palladium Bayan, 129-140, Greams Road, Chennai – 600 006, Tamilnadu, India
PAN No.:	AADFP9359C
Holding Company :	· ET Dutch Holdings BV ( Up to July 29th, 2011) · Faurecia Emissions Control Systems, Korea ( July 30^th 2011 onwards)
Associates :	· Asia Investments Private Limited
Fellow Subsidiaries :	· FECT Technologies (UK) · Faurecia ECT Netherlands BV · Faurecia Emissions Control Technologies Germany (Augsburg) GmbH · Faurecia Emissions Control Technologies (Chongqing) Company Limited · Faurecia Emissions Control Technologies Spain , S.L. · ET Mexico Holdings I S de RL de CV · Faurecia Environmental Technologies (Shanghai) Company Limited · FECT Technologies LLC, USA · Faurecia Emissions Control Technologies Limeira Ltda · Faurecia Emissions Control Technologies Limeira Ltda · Faurecia Systemes D'Echappement · Emission Control Technologies South Africa (Cape Town) (Pty.) Limited · Faurecia Emission Control Technologies Thailand Limited · US Holdings Shared service Centre, USA · Faurecia-Metalloprodukcia Exhaust Systems LLC, Hungary · Faurecia Technology Centre India Private Limited

CAPITAL STRUCTURE

AS ON 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
32000000	Equity Shares	Rs. 10/- each	Rs.320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14000000	Equity Shares	Rs. 10/- each	Rs.140.000 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	140.000	140.000	140.000
(b) Reserves & Surplus	276.650	225.910	119.700
(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)	416.650	365.910	259.700
(3) Non-Current Liabilities
(a) long-term borrowings	131.330	193.440	112.320
(b) Deferred tax liabilities (Net)	0.000	0.000	0.630
(c) Other long term liabilities	26.870	4.980	10.710
(d) long-term provisions	10.940	6.290	2.540
Total Non-current Liabilities (3)	169.140	204.710	126.200
(4) Current Liabilities
(a) Short term borrowings	108.900	70.070	13.530
(b) Trade payables	533.240	442.000	136.810
(c) Other current liabilities	141.310	115.390	115.790
(d) Short-term provisions	36.990	66.940	36.160
Total Current Liabilities (4)	820.440	694.400	302.290
TOTAL	1406.230	1265.020	688.190
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	472.660	452.400	241.240
(ii) Intangible Assets	33.430	14.090	15.500
(iii) Capital work-in-progress	90.660	0.000	65.060
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	31.570
(c) Deferred tax assets (net)	4.200	13.130	0.000
(d) Long-term Loan and Advances	112.330	57.640	5.700
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	713.280	537.260	359.070
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	184.650	114.370	94.830
(c) Trade receivables	363.380	394.610	177.840
(d) Cash and cash equivalents	17.530	134.040	9.130
(e) Short-term loans and advances	122.460	70.790	47.320
(f) Other current assets	4.930	13.950	0.000
Total Current Assets	692.950	727.760	329.120
TOTAL	1406.230	1265.020	688.190

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2670.800	2582.000	1114.300
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		Cost of goods sold
		Employee costs	NA	NA	NA
		Other expenses
		TOTAL (B)	NA	NA	NA
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		251.700	266.200	134.500
Less	FINANCIAL EXPENSES (D)		37.800	34.800	11.100
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		213.900	231.400	123.400
Less	DEPRECIATION/ AMORTISATION (F)		116.200	86.400	33.100
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		97.700	145.000	90.300
Less	TAX (H)		30.700	53.700	28.200
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		67.000	91.300	62.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		172.000	109.700	63.900
Less	APPROPRIATIONS
		Transfer to General Reserves	4.600	4.600	0.000
		Interim and Final Dividend	0.000	0.000	0.000
		Tax on Dividend	16.300	24.400	16.300
	BALANCE CARRIED TO THE B/S		181.100	172.000	109.700
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	7.480	20.760	27.410
		Services Rendered	0.000	98.370	64.630
	TOTAL EARNINGS		7.480	119.130	92.040
	IMPORTS
		Raw Materials	254.290	395.120	155.380
		Stores & Spares	6.360	3.260	2.590
		Capital Goods	22.580	50.650	39.020
	TOTAL IMPORTS		283.230	449.030	196.990
	Earnings Per Share (Rs.)		4.79	6.52	4.43

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	3.66	5.62	8.10
Return on Total Assets (PBT/Total Assets}	(%)	8.15	12.14	15.41
Return on Investment (ROI) (PBT/Networth)		0.23	0.40	0.35
Debt Equity Ratio (Total Debt /Networth)		0.58	0.72	0.48
Current Ratio (Current Asset/Current Liability)		0.84	1.05	1.09

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 three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10436076	31/05/2013	70,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, MAHARASHTRA, INDIA	B79285714
2	10264156	14/02/2011 *	199,400,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, KARUMUTTU NILAYAM, NO.1, 92, ANNA SALAI, CHENNAI - 600002, TAMIL NADU, INDIA	B07320724
3	10239057	31/05/2013 *	280,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, MAHARASHTRA, INDIA	B79938544
4	10167596	07/08/2013 *	191,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, GROUND FLOOR, KARUMUTHU NILAYAM, NO.192, ANNA SALAI, CHENNAI - 600002, TAMIL NADU, INDIA	B83787739
5	10015970	28/08/2006	4,170,002.00	FORD INDIA (P) LIMITED	S.P.KOIL POST, CHENGALPATTU, KANCHEEPURAM - 603 204, TAMIL NADU, INDIA	A03893252
6	10016208	28/08/2006	4,028,753.00	FORD INDIA (P) LIMITED	S.P.KOIL POST, CHENGALPATTU, KANCHEEPURAM - 603 204, TAMIL NADU, INDIA	A03892833
7	10016215	28/08/2006	488,826.00	FORD INDIA (P) LIMITED	S.P.KOIL POST, CHENGALPATTU, KANCHEEPURAM - 603 204, TAMIL NADU, INDIA	A03893609

* Date of charge modification

FIXED ASSETS:

· Buildings

· Plant and Machinery

· Furniture, Fittings and Equipment

· Vehicles

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.62.33
UK Pound	1	Rs.101.99
Euro	1	Rs.84.62

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.