MIRA INFORM REPORT

Report Date :

26.07.2014

IDENTIFICATION DETAILS

Name :	FLEXTRONICS TECHNOLOGIES (INDIA) PRIVATE LIMITED
Registered Office :	Plot No.3, Phase II, SIPCOT Industrial Park, Sriperumbunder Taluk, Sandavellure C Village, Kancheepuram District – 602 106, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.01.2001
Com. Reg. No.:	18-070708
Capital Investment / Paid-up Capital :	Rs.1672.097 millions
CIN No.: [Company Identification No.]	U31909TN2001PTC070708
PAN No.: [Permanent Account No.]	AAACF5248E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Printed Circuit Boards and Multiplexers.
No. of Employees :	6000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 9702000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Reserves of the company seems to be low. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

NEWS

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before. A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two. While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs.2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers with hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Anand Akur
Designation :	Manager (Finance Department)
Contact No.:	91-9940009258
Date :	24.07.2014

LOCATIONS

Registered Office :	Plot No.3, Phase II, SIPCOT Industrial Park, Sriperumbunder Taluk, Sandavellure C Village, Kancheepuram District – 602 106, Tamilnadu, India
Tel. No.:	91-44-37180264/ 67105000
Mobile No.:	91-9940009258 (Mr. Anand Akur)
Fax No.:	91-44-45050492
E-Mail :	omesh.raina@rediffmail.com omesh.raina@in.flextronics.com rajiv.bhandari@in.flextronics.com prasad.amirthiyya@in.flextronics.com monika.dhanuka@in.flextronics.com anand.akur@flextronics.com sabuj.choudhury@flextronics.com
Website :	www.flextronics.com
Location :	Owned
Factory 1 :	A-380, Defense Colony, New Delhi – 110 024, India
Factory 2 :	28A, Electronic City, Hosur Road, Bangalore, Karnataka, India
Factory 3 :	Located at: · Mumbai
Branch Office 1 :	Finance Shared Services, Baan Company 125, AP812, Ispahani Centre, 123/124, Nungambakkam High Road, Chennai – 600 034, Tamilnadu, India
Tel. No.:	91-44-66251200/ 67105152
Branch Office 2 :	AP828, RMZ Millennia Business Park, 7^th Floor, Campus II, No.143, Dr. MGR Road, Kandanchavadi, Chennai – 600 096, Tamilnadu, India

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Ashok Dhawan

Designation :

Managing Director

Address :

43B, Raheja Park Plaza, Near Yari Road, Andheri (West), Mumbai – 400 061, Maharashtra, India

Date of Birth/Age :

10.11.1964

Qualification :

Diploma in Hotel Management and MBA Finance

Experience :

22 Years

Date of Appointment :

29.09.2008

Din No.:

00798959

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	U31909TN2001PTC070708	FLEXTRONICS TECHNOLOGIES (INDIA) PRIVATE LIMITED	Managing director	29-09-2008	15-11-2007	-	Active	NO
2	U51505TN2007FTC065546	FLEXPOWER INDIA PRIVATE LIMITED	Director	23-09-2013	08-01-2013	-	Active	NO

Name :

Mr. Manny Al Marimuthu

Designation :

Director

Address :

No 5 Lot 32 , Persiaran Kudalari, Country Heights, Kajang, Selangor, Darul Eshan, Kuala Lumpur, Malaysia - 43000

Date of Birth/Age :

11.10.1961

Date of Appointment :

12.01.2001

Din No.:

00867715

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	U31909TN2001PTC070708	FLEXTRONICS TECHNOLOGIES (INDIA) PRIVATE LIMITED	Director	12-01-2001	12-01-2001	-	Active	NO
2	U30006KA2006PTC040491	SOLECTRON INDIA PRIVATE LIMITED	Director	25-09-2008	01-10-2007	-	Amalgamated	NO
3	U85110KA1994PTC015357	FLEXTRONICS DESIGN PRIVATE LIMITED	Director	28-11-2007	09-11-2007	-	Amalgamated	NO
4	U72200KA2003PTC031806	FLEXTRONICS DESIGN CONSUMER ELECTRONICS (INDIA) PRIVATE LIMITED	Director	30-09-2008	27-11-2007	-	Amalgamated	NO
5	L32109KA2006PLC040641	SOLECTRON EMS INDIA LIMITED	Director	24-03-2008	28-11-2007	-	Amalgamated	NO
6	U51505TN2007FTC065546	FLEXPOWER INDIA PRIVATE LIMITED	Director	21-04-2008	21-04-2008	-	Active	NO
7	U72900KA2004PTC034404	COLDWATT INDIA PRIVATE LIMITED	Director	25-09-2008	25-06-2008	-	Amalgamated	NO
8	L85110KA1993PLC013869	CENTUM ELECTRONICS LIMITED	Director	28-09-2010	09-08-2010	16-08-2012	Active	NO

Name :

Sekaran Letchumanan

Designation :

director

Address :

55 Lorong Permai 5, Kota Permai Bukit Mertajam Pulau Pinang

Date of Appointment :

30.09.2013

Din No.:

02069716

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	U51505TN2007FTC065546	FLEXPOWER INDIA PRIVATE LIMITED	Director	23-09-2013	21-04-2008	-	Active	NO
2	U31909TN2001PTC070708	FLEXTRONICS TECHNOLOGIES (INDIA) PRIVATE LIMITED	Director	30-09-2013	05-06-2008	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Monika Dhanuka
Designation :	Secretary
Address :	New No.11, Old No.47-V, V Koil Street, Kusapet (Near Puraswalkkam), Chennai – 600 012, Tamilnadu, India
Date of Appointment :	29.05.2012
PAN No.:	AMFPD9714J
Name :	Mr. Anand Akur
Designation :	Manager (Finance Department)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Equity Shares	No. of Preferences Shares
Flextronics International Asia Pacific Limited, Mauritius	59837066	105668199
Flextronics Telecom Systems Limited, Mauritius	1401914	--
Flextronics Mauritius Limited, Mauritius	302558	--
Total	61541538	105668199

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Printed Circuit Boards and Multiplexers.

Products :

Item Code No. (ITC)	Product Description
853400	Printed Circuit Board
851700	Multiplexers

Exports :

Products :

· Printed Circuit Board

· Multiplexers

Countries :

· Malaysia

· Europe

Imports :

Products :

Raw Materials

Countries :

China

Terms :

Selling :

Credit

Purchasing :

Credit

GENERAL INFORMATION

Customers :	Manufacturer
No. of Employees :	6000 (Approximately)
Bankers :	Citi Bank, M.G. Road, Bangalore, Karnataka, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Jain Christopher Srikanth and Srikanth Chartered Accountants
Address :	II Floor, Uniworth Plaza, No.20, Sankey Road, Bangalore – 560 020, Karnataka, India
PAN No:	AADFJ0586H
Holding Company :	Flextronics International Asia-Pacific Limited
Associates :	· Flextronics America LLC · Flextronics Enclosure (Shenzhen) Limited · Flextronics International Aguascalientes (L) Limited · Flextronics International Europe B.V. · Flextronics International Japan Company Limited · Flextronics International Kft. · Flextronics International Poland Sp z.o.o. · Flextronics International Tecn · Flextronics Manufacturing (Singapore) Pte Limited · Flextronics Manufacturing (Zhuhai ) Company Limited · Flextronics Manufacturing Mexico · Flextronics Technology (Penang) Sdn. Bhd. · Solectron Hungary Electronics · Flextronics Technology (Malaysia) Sdn. Bhd. · Flextronics Information Technology (Shen Zhen) Company Limited · Flextronics International Management Services Limited · Flextronics International USA · Flextronics Manufacturing (H.K.) Limited · Flextronics International USA Inc (FIUI)

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
146020000	Equity Shares	Rs.10/- each	Rs.1460.200 millions
115000000	Preferences Shares	Rs.10/- each	Rs.1150.000 millions
	Total		Rs.2610.200 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
61541538	Equity Shares	Rs.10/- each	Rs.615.415 millions
105668199	Preferences Shares	Rs.10/- each	Rs.1056.682 millions
	Total		Rs.1672.097 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	1672.097	1659.146	1659.146
(b) Reserves & Surplus	753.370	431.652	433.777
(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)	2425.467	2090.798	2092.923
(3) Non-Current Liabilities
(a) Long-term borrowings	2.479	14.978	14.979
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	14.335	28.925	14.980
(d) Long-term provisions	125.289	99.598	95.493
Total Non-current Liabilities (3)	142.103	143.501	125.452
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	719.883	615.037	1707.358
(c) Other current liabilities	234.215	288.517	305.800
(d) Short-term provisions	292.180	329.429	126.614
Total Current Liabilities (4)	1246.278	1232.983	2139.772
TOTAL	3813.848	3467.282	4358.147
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1218.543	1263.966	1553.495
(ii) Intangible Assets	10.926	14.892	1.355
(iii) Capital work-in-progress	0.703	6.584	69.071
(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	82.628	63.806	62.839
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1312.800	1349.248	1686.760
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	305.232	361.823	767.393
(c) Trade receivables	1192.517	796.687	1066.233
(d) Cash and cash equivalents	529.083	613.964	405.424
(e) Short-term loans and advances	427.974	323.403	302.482
(f) Other current assets	46.242	22.157	129.855
Total Current Assets	2501.048	2118.034	2671.387
TOTAL	3813.848	3467.282	4358.147

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	TOTAL REVENUE		5055.124	4162.521	3541.938
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAXES, EXTRA-ORDINARY ITEMS AND PRIOR PERIOD ITEMS		0.000	0.000	(207.050)
	PRIOR PERIOD ADJUSTMENTS		0.000	22.214	23.953
	PROFIT / (LOSS) BEFORE TAX		312.599	(2.125)	(231.004)
Less	TAX		0.000	0.000	0.000
	PROFIT / (LOSS) AFTER TAX		312.599	(2.125)	(231.004)
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2454.335)	(2452.209)	(2221.204)
	BALANCE CARRIED TO THE B/S		(2239.218)	(2454.335)	(2452.209)
	EARNINGS IN FOREIGN CURRENCY		3972.166	3531.517	NA
	Earnings / (Loss) Per Share (Rs.)		1.87	NA	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	8.20	(0.06)	(5.39)
Return on Investment (ROI) (PBT/Networth)		0.13	0.00	(0.11)
Debt Equity Ratio (Total Debt/Networth)		0.00	0.01	0.01
Current Ratio (Current Asset/Current Liability)		2.00	1.72	1.25

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	1659.146	1659.146	1672.097
Reserves & Surplus	433.777	431.652	753.370
Share Application money pending allotment	0.000	0.000	0.000
Net worth	2092.923	2090.798	2425.467
Long-term borrowings	14.979	14.978	2.479
Short term borrowings	0.000	0.000	0.000
Total borrowings	14.979	14.978	2.479
Debt/Equity ratio	0.007	0.007	0.001

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Total Turnover	3541.938	4162.521	5055.124
		17.521	21.444

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Total Turnover	3541.938	4162.521	5055.124
Profit	(231.004)	(2.125)	312.599
	(6.52%)	(0.05%)	6.18%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last 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)	Yes
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]	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	No

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Loans and advances from related parties	2.479	14.978
Total	2.479	14.978

Notes:

· The Registered Office of the company has been shifted from 88A, Electronic City, Hosur Road, Bangalore, Karnataka, India to the present address w.e.f. 12.11.2008.

· No Charges Exist for Company.

MERGER AND AMALGAMATION:

The Board of Directors of the Company vide its resolution No. 3 dated 24^th January 2013 approved a Scheme of

Arrangement of the Company with Flextronics Design Private Limited (hereinafter referred to as the “FDPL”), with the Company with effect from the Appointed Date, i.e. 1^st day of April, 2012.

The said Scheme of Arrangement was approved by the High Court of Karnataka Bangalore, vide its Order dated 12^th August 2013. Pursuant to the Order of the High Court of Karnataka, Bangalore, application for approval to the Scheme of Arrangement has been filed with the High Court of Chennai for which the scheme has been approved vides its order dated 11^th September 2013.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Buildings

· Plant and Machinery

· Electrical Installations

· Furniture and Fixtures

· Office Equipment’s

· Computer

· 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.60.14
UK Pound	1	Rs.102.22
Euro	1	Rs.81.02

INFORMATION DETAILS

Information Gathered by :	GYA
Analysis Done by :	RAS
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.