MIRA INFORM REPORT

Report Date :

24.01.2014

IDENTIFICATION DETAILS

Name :	HICAL TECHNOLOGIES PRIVATE LIMITED (w.e.f. 25.07.2006)
Formerly Known As :	HICAL MAGNETICS PRIVATE LIMITED
Registered Office :	Survey No.46, 47 (Part), Phase – II, Electronic City, Hosur Road, Bangalore-560100, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	02.04.1990
Com. Reg. No.:	08-010854
Capital Investment / Paid-up Capital :	Rs.99.430 Millions
CIN No.: [Company Identification No.]	U31909KA1990PTC010854
TAN No.: [Tax Deduction & Collection Account No.]	BLRH01817E
PAN No.: [Permanent Account No.]	AAACH3639K
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in Manufacture of Electronic Assemblies and Hence Falls into Single Segment viz., Electronic Manufacturing Services (EMS).
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 627000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track. Reserves of the company appears to be low. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB+ [Long Term]
Rating Explanation	Have moderate risk of default
Date	11.09.2013

Rating Agency Name	CRISIL
Rating	A4+ [Short Term]
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	11.09.2013

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 31-03-2012.

LOCATIONS

Registered/ Corporate Office :	Survey No.46, 47 (Part), Phase – II, Electronic City, Hosur Road, Bangalore-560100, Karnataka, India
Tel. No.:	91-80-66122504/66189600
Mobile No.:	91-9845694624 (Mr. Mahesh B.P.)
Fax No.:	91-80-28520558/448
E-Mail :	vishanath.bhandary@hical.com bharatesh.ms@hical.com shashikiran.mullur@hical.com
Website :	http://www.hical.com

DIRECTORS

AS ON 08.07.2013

Name :

Sujaya Shashikiran

Designation :

Managing Director

Address :

No.131, I Block, 3rd Main Road, Ashwathnagar, RMV II Stage, Bangalore – 560 094, Karnataka, India

Date of Birth/Age :

01.06.1961

Date of Appointment :

02.04.1990

Din No.:

00219686

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	U31909KA1989PTC010584	YAGACHI VIDYUNMAAN PRIVATE LIMITED	Whole-time director	08-12-89	08-12-89	Active	NO
2	U31909KA1990PTC010854	HICAL TECHNOLOGIES PRIVATE LIMITED	Managing director	01-04-12	02-04-90	Active	NO
3	U74999KA2007PTC043381	LEMON TREE MEDIA PRIVATE LIMITED	Director	17-07-07	17-07-07	Active	NO
4	U01403KA2007PTC044665	LEMON - TREE PLANTATIONS PRIVATE LIMITED	Director	13-12-07	13-12-07	Active	NO
5	U85100KA2010PTC054907	HICAL HEALTHCARE PRIVATE LIMITED	Director	20-08-10	20-08-10	Active	NO
6	U31900KA2011PTC060176	HICAL AEROSPACE PRIVATE LIMITED	Director	26-08-11	26-08-11	Active	NO

Name :

Mr. Shashikiran Siddalingamurthy Mullur

Designation :

Whole Time Director

Address :

No.131, I Block, 3^rd Main Road, Ashwathnagar, RMV II Stage, Bangalore – 560 094, Karnataka, India

Date of Birth/Age :

01.06.1959

Date of Appointment :

02.04.1990

Din No.:

00219672

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	U31909KA1989PTC010584	YAGACHI VIDYUNMAAN PRIVATE LIMITED	Managing director	08-12-89	08-12-89	Active	NO
2	U31909KA1990PTC010854	HICAL TECHNOLOGIES PRIVATE LIMITED	Whole-time director	01-04-12	02-04-90	Active	NO
3	U74999KA2007PTC043381	LEMON TREE MEDIA PRIVATE LIMITED	Director	17-07-07	17-07-07	Active	NO
4	U01403KA2007PTC044665	LEMON - TREE PLANTATIONS PRIVATE LIMITED	Director	13-12-07	13-12-07	Active	NO
5	U85100KA2010PTC054907	HICAL HEALTHCARE PRIVATE LIMITED	Director	20-08-10	20-08-10	Active	NO
6	U31900KA2011PTC060176	HICAL AEROSPACE PRIVATE LIMITED	Director	26-08-11	26-08-11	Active	NO

Name :

Mr. Venkatesh Bakthavatchalan Vallam

Designation :

Whole Time Director

Address :

Vallam, 17, 2^nd Main Road, KSRTC Layout, J. P. Nagar, II Phase, Bangalore – 560 078, Karnataka, India

Date of Birth/Age :

01.02.1959

Date of Appointment :

04.08.1990

Din No.:

00219696

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	U31909KA1990PTC010854	HICAL TECHNOLOGIES PRIVATE LIMITED	Whole-time director	04-08-90	04-08-90	Active	NO
2	U31909KA1989PTC010584	YAGACHI VIDYUNMAAN PRIVATE LIMITED	Whole-time director	02-03-07	02-03-07	Active	NO

Name :

Jaiveer Yashas

Designation :

Director

Address :

No. 131, I Block, 3^rd Main Road, Ashwathnagar, RMV 2^nd Stage, Bangalore-560094, Karnataka, India

Date of Birth/Age :

29.01.1987

Date of Appointment :

24.03.2012

Din No.:

05242215

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	U31909KA1990PTC010854	HICAL TECHNOLOGIES PRIVATE LIMITED	Director	18/06/2012	24/03/2012	Active	NO
2	U31908KA2012PTC065813	HICAL NSE ELECTRONICS PRIVATE LIMITED	Managing director	22/10/2013	08/09/2012	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 08.07.2013

Names of Shareholders	No. of Shares
Shashikiran Siddalingamurthy Mullur	3721347
Sujaya Shashikiran	2471553
Venkatesh Bakthavatchalan Vallam	1930887
Bharatesh M.S.	1819188
TOTAL	9942975

AS ON 08.07.2013

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Manufacture of Electronic Assemblies and Hence Falls into Single Segment viz., Electronic Manufacturing Services (EMS).

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Specialized Commercial Branch, Krishi Bhavan, First Floor, Hudson Circle, Bangalore-560001, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Term loans from banks	23.268	1.102
Other loans and advances	75.258	0.000
Short Term Borrowings
Term loans	11.068	5.473
Working capital loans from banks	55.670	40.244
Loans and advances from others	8.900	0.000
Other loans and advances	4.399	12.700
TOTAL	178.563	59.519

Banking Relations :	--
Auditors :
Name :	Rajagopal and Badrinarayanan Chartered Accountants
Address :	No.25, Padmashree Mansions, II Floor, 2^nd Cross, Sampige Road, Malleshwaram, Bangalore – 560 003, Karnataka, India
PAN No:	AACFR5386A
Associates/Subsidiaries :	· Yagachi Vidyunmaan Private Limited (Formerly Hical Engineering Private Limited) · Lemon-Tree Media Private Limited · Hical Health care Private Limited · Hical Aerospace Private Limited · Hical Electronics Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9942975	Equity Shares	Rs.10/- each	Rs.99.430 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	99.430	99.430	99.430
(b) Reserves & Surplus	57.542	56.103	72.725
(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)	156.972	155.533	172.155
(3) Non-Current Liabilities
(a) long-term borrowings	98.526	1.102	6.697
(b) Deferred tax liabilities (Net)	0.001	0.001	0.001
(c) Other long term liabilities	12.000	12.000	12.000
(d) long-term provisions	10.309	8.279	2.138
Total Non-current Liabilities (3)	120.836	21.382	20.836
(4) Current Liabilities
(a) Short term borrowings	80.628	68.981	60.394
(b) Trade payables	43.491	16.422	21.702
(c) Other current liabilities	18.586	17.256	13.031
(d) Short-term provisions	2.847	2.140	9.675
Total Current Liabilities (4)	145.552	104.799	104.802
TOTAL	423.360	281.714	297.793
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	146.826	121.273	132.791
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	4.614	3.512
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	10.243	10.143	10.043
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	24.138	18.750	19.072
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	181.207	154.780	165.418
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	115.116	43.015	48.075
(c) Trade receivables	103.583	52.843	59.105
(d) Cash and cash equivalents	5.078	15.438	15.199
(e) Short-term loans and advances	18.376	15.638	9.996
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	242.153	126.934	132.375
TOTAL	423.360	281.714	297.793

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	347.570	325.190	395.280
		Other Income	25.090	21.550	10.710
		TOTAL (A)	372.660	346.740	405.990
Less	EXPENSES
		TOTAL (B)	323.070	332.600	368.610
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		49.590	14.140	37.380
Less	FINANCIAL EXPENSES (D)		24.760	11.270	8.460
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		24.830	2.870	28.920
Less/ Add	DEPRECIATION/ AMORTISATION (F)		23.040	19.490	17.770
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1.790	(16.620)	11.150
Less	TAX (H)		0.350	0.000	2.440
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		1.440	(16.620)	8.710
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	317.170	248.040	311.710
	IMPORTS
		Capital Goods	14.840	1.750	17.450
		Raw Materials	112.480	56.220	54.500
		Stores, Spares and Production Consumables	21.600	2.600	39.800
		Agency Commission	0.000	0.850	2.710
		Others	4.710	2.640	2.180
	TOTAL IMPORTS		153.630	64.060	116.640
	Earnings / (Loss) Per Share (Rs.)		0.14	(1.67)	0.88

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.39	(4.79)	2.15
Net Profit Margin (PBT/Sales)	(%)	0.52	(5.11)	2.82
Return on Total Assets (PBT/Total Assets}	(%)	0.43	(6.23)	3.92
Return on Investment (ROI) (PBT/Networth)		0.01	(0.11)	0.06
Debt Equity Ratio (Total Debt/Networth)		1.14	0.45	0.39
Current Ratio (Current Asset/Current Liability)		1.66	1.21	2.59

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

INDEX OF CHARGES:

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10402091	21/01/2013	80,000,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	ONE FORBES,, DR. V. B. GANDHI MARG, FORT, MUMBAI - 400001,, MAHARASHTRA INDIA	B67748210
2	90192091	04/10/2012 *	218,700,000.00	STATE BANK OF INDIA	SPECIALIZED COMMERCIAL BRANCH, KRISHI BHAVAN, I F LOOR, HUDSON CIRCLE, BANGALORE - 560001, KARNATAKA, INDIA	B60862992
* Date of charge modification

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Short Term Borrowings
Term loans from others	0.000	3.817
Loans repayable on demand	0.591	0.000
Deposit from others	0.000	6.651
Other loans and advances	0.000	0.096
TOTAL	0.591	10.564

MANAGEMENT DISCUSSION AND ANALYSIS:

SALES:

Total Revenue for the year ended March 31, 2013 increased from Rs. 325.190 millions for the year ended March 31, 2012 to Rs.347.570 millions, i.e., by Rs.22.380 millions in value terms. The net exports (net of freight) is Rs.317.170 millions as against Rs. 248.040 millions in the previous year, an increase of Rs.69.130 millions being a significant increase by 27.87%. While domestic sales, net of excise duty, is Rs.28.560 millions as against Rs.72.180 millions in the previous year a decrease by Rs.43.620 millions over previous year. The increase in sales-export (net of freight) and decrease in sales-domestic (net of excise duty) respectively over the previous year has resulted in a net increase of revenue by Rs. 22.380 millions in value and in percentage by 6.88%. This increase is a result of combined change in the product/project mix and thrust on export.

COST OF GOODS SOLD:

Cost of Raw materials, packing cases, job works, and other indirect materials is Rs.169.140 millions, i.e., 48.67% of total revenue of Rs.347.570 in the current year as against a cost of Rs.191.890 millions at 59.01% of total revenue of Rs.325.190 millions in the previous year. The reduction in cost goods sold is mainly due to change in product/project mix. However, Other Expenses is at 13.12% of total revenue in the current year as against 14.98% of total revenue in previous year, being a decrease by 1.86% as a percentage of total revenue. Also, there is a significant loss of Rs.8.850 millions for the current year as against a gain of Rs.1.330 millions for the previous year mainly due to increase in import purchases, the payment for which was made by buying dollars from the market and not through natural hedging and also due to lower forward cover booking rate compared to realization rate.

SELLING EXPENSES:

Selling expenses for the year is at Rs.1.490 millions as compared to Rs.3.670 millions during the previous year, accounting for decrease in selling expenses by Rs.2.180 millions. This is mainly due to significant decrease in advertisement expenses, commission on export sales and also marginal decrease in carriage outwards. Over-all the selling expenses is at 0.43% of total revenue as against 1.13% of total revenue in the previous year.

INTEREST AND FINANCE CHARGES:

Interest and finance charges have been increased by Rs.4.640 millions over previous year. This is mainly due to increase in interest cost by 2.790 millions on all loans i.e., term loan, packing credit, post shipment loan and Demand Loan and also due to increase in Finance charges by 1.85 million. The reason mainly being the availment of fresh Rupee Term Loan, Loan against lease rentals and increased utilization of packing credit facility as compared to previous year. There has also been an increase in Finance charges due to processing charges on the availment of Loan against Lease rentals and Rupee Term Loan. The Interest and finance cost is at 4.58% of total revenue as against 3.47% of total revenue in the previous year.

FINANCIAL PERFORMANCE:

During the year, the Company has achieved an operating profit (PBDIT) of Rs. 40.740 millions as against Rs. 14.140 millions in the previous year. The major reason for this being a net result of increase in the revenue by 6.88%, decrease in cost of goods sold by 10.34%, decrease by 0.70% in selling expenses and increase in Interest and finance cost by 1.11% to total revenue. The Profit before tax is Rs. 1.790 millions as against a Loss of Rs. 16.630 millions in the previous year. The Profit after tax is Rs. 1.440 millions as against a Loss of Rs. 16.630 millions in the previous year.

BUSINESS OUTLOOK:

The company has consolidated product qualifications from various global aerospace majors. However, the launch of mass production has stretched beyond the current fiscal year, and is expected to commence only in the second half of the next fiscal year. A major break is that a new account has been rapidly added, that of a very large European aerospace corporation. With this, the company has significant content in several major aircraft, including the Boeing 787 Dreamliner, the Airbus 350, Bombardier, Cessna, and others. The company retained the UTC Supplier Gold for the third year, with improved scores, and it is still the sole winner of this honor in India at the time of writing this report. To balance the growing opportunities that the company has consolidated in aerospace and defense segments, the company has begun to develop new customers in the specialty industrial segment, in niches that offer greater value addition, and the possibility of long term strategic alliances. The company expects to grow significantly from 2013-14 onwards.

FIXED ASSETS:

· Land (Freehold)

· Buildings

· Plant and Machinery

· Plant and Machinery (R and D)

· Computers and DPE

· Computer (R and D)

· Office Equipments

· Lab Equipments

· Furniture and Fixtures

· 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 records 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] 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.61.99
UK Pound	1	Rs.102.67
Euro	1	Rs.83.97

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
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	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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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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.