MIRA INFORM REPORT

Report Date :

13.06.2014

IDENTIFICATION DETAILS

Name :	KOSEI MINDA ALUMINUM COMPANY LIMITED (w.e.f. 05.09.2011)
Formerly Known As :	VARADA AUTO COMPONENTS LIMITED
Registered Office :	Plot No.20/A and A/B, SIPCOT Industrial Growth Center, Oragadam Extension Scheme, RNS Park, Village Vadakkupattu, Sriperubudur Taluk – 603204, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	10.03.2011
Com. Reg. No.:	18-079581
Capital Investment / Paid-up Capital :	Rs. Millions
CIN No.: [Company Identification No.]	U28910TN2011PLC079581
TAN No.: [Tax Deduction & Collection Account No.]	CHEV10802B
PAN No.: [Permanent Account No.]	AADCV5849G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the manufacture, development and sale of aluminum wheels and other accessories / parts for automobile industry.
No. of Employees :	Not Divulged

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 2270000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively new company having moderate track record. Company has commenced its operation activity from August 2012 and has achieved turnover of Rs.124.140 Millions within period of 8 months ending March 2013. There are accumulated losses recorded by the company. However, trade relations are improving. Business is active. Payment terms are 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, 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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 DENIED

Management Non Co-operative (91-124-2290428)

LOCATIONS

Registered Office :	Plot No.20/A and A/B, SIPCOT Industrial Growth Center, Oragadam Extension Scheme, RNS Park, Village Vadakkupattu, Sriperubudur Taluk – 603204, Tamilnadu, India
Tel. No.:	91-124-2290693 / 428
Fax No.:	91-124-2240695
E-Mail :	info@mindagroup.com corpcomm@mindagroup.com investor@mindagroup.com dpanda@mindagroup.com
Website :	www.mindagroup.com

DIRECTORS

AS ON 25.09.2013

Name :

Mr. Shizuo Arita

Designation :

Managing Director

Address :

5-8-7, Itsutsugaoka, Aichi Ken, Toyota Shi, 4710814 - Japan

Date of Appointment :

23.01.2013

PAN No.:

ESYPS4356F

DIN No.:

06479293

Name :

Mr. Shunkichi Kamiya

Designation :

Director

Address :

42-Shimizukaoka, Yatomi-Cho, Mizuho-Ku, Nagoya, Aichi, Japana, Nagoya – 470038

Date of Appointment :

26.07.2012

DIN No.:

03482173

Name :

Mr. Nirmal Kumar Minda

Designation :

Director

Address :

J 10/33 DLF Phase-II, Gurgaon – 122002, Haryana, India

Date of Appointment :

10.03.2011

PAN No.:

AFYPM4910J

DIN No.:

00014942

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	L74899DL1985PLC020401	MINDA CORPORATION LIMITED	Director	22/07/1987	22/07/1987	09/04/2011	Active	NO
2	L74899DL1992PLC050333	MINDA INDUSTRIES LIMITED	Managing director	01/04/2013	16/09/1992	-	Active	NO
3	U74899DL1995PTC073692	MINDARIKA PRIVATE LIMITED	Managing director	09/11/1995	09/11/1995	-	Active	NO
4	U23201DL2001PLC111781	MINDA AUTOGAS LTD	Managing director	25/09/2006	24/07/2001	-	Amalgamated	NO
5	U34300DL2003PLC121384	MINDA AUTOMOTIVE LIMITED	Director	18/07/2003	18/07/2003	-	Active	NO
6	U34300DL2004PLC127424	MINDA FIAMM ACOUSTIC LIMITED	Director	07/07/2004	07/07/2004	-	Amalgamated	NO
7	U34300DL2004PLC127423	MINDA ACOUSTIC LIMITED	Director	07/07/2004	07/07/2004	-	Amalgamated	NO
8	U31905DL1981PLC127345	MINDA SAI LIMITED	Director	28/03/2005	28/03/2005	09/04/2011	Active	NO
9	U74899DL2005PTC142456	UNITECH SAI PRIVATE LIMITED	Director	10/11/2005	10/11/2005	-	Active	NO
10	U70109DL2006PTC150012	SHREEAUMJI INFRASTRUCTURE AND PROJECTS PRIVATE LIMITED	Director	22/06/2006	22/06/2006	-	Active	NO
11	U99999DL1959PLC176013	AUTOMOTIVE COMPONENT MANUFACTURERS ASSOCIATION OF INDIA	Director	08/09/2006	08/09/2006	-	Active	NO
12	U45201DL2006PTC144714	SHREEAUMJI REAL ESTATE SEZ PRIVATE LIMITED	Director	28/09/2007	14/11/2006	-	Active	NO
13	U74899DL2006PTC144713	SHREEAUMJI DEVELOPERS SEZ PRIVATE LIMITED	Director	28/09/2007	14/11/2006	-	Active	NO
14	U93090DL2007PLC158964	MINDA INTERNATIONAL LIMITED	Director	17/02/2007	17/02/2007	-	Active	NO
15	U29256DL2007PTC161976	MINDA AUTO LIGHTING PRIVATE LIMITED	Director	09/05/2007	09/05/2007	-	Strike off	NO
16	U31908TN2007PTC081836	VALEO ENGINE AND ELECTRICAL SYSTEMS INDIA PRIVATE LIMITED	Director	06/08/2008	24/07/2007	19/05/2010	Amalgamated	NO
17	U63090DL2008PTC172298	OM MARUBENI LOGISTICS PRIVATE LIMITED	Director	04/01/2008	04/01/2008	-	Under liquidation	NO
18	U34300KA2008PTC047401	TOKAI RIKA MINDA INDIA Private Limited	Director	27/07/2009	25/08/2008	17/07/2013	Active	NO
19	U45400DL2008PLC185619	Minda Realty and Infrastructure Limited	Director	09/06/2010	10/12/2008	-	Active	NO
20	U74900DL2009PLC186740	MINDA MINDPRO LIMITED	Director	16/01/2009	16/01/2009	-	Active	NO
21	U93000DL2009PLC190114	MINDA SPECTRUM ADVISORY LIMITED	Director	08/05/2009	08/05/2009	-	Active	NO
22	U35999DL2010PLC200859	MINDA EMER TECHNOLOGIES LIMITED	Director	29/03/2010	29/03/2010	-	Active	NO
23	L67120DL1985PLC021349	MINDA FINANCE LIMITED	Director	14/07/2010	17/04/2010	-	Active	NO
24	U28900DL2010PLC211731	M J CASTING LIMITED	Director	23/12/2010	23/12/2010	-	Active	NO
25	U28113DL2011PTC212192	FJM CYLINDERS PRIVATE LIMITED	Director	05/01/2011	05/01/2011	-	Active	NO
26	U34300DL2010PTC211292	ROKI Minda Co. Private Limited	Director	05/06/2012	31/01/2011	-	Active	NO
27	U28910TN2011PLC079581	KOSEI MINDA ALUMINUM COMPANY LIMITED	Director	10/03/2011	10/03/2011	-	Active	NO
28	U31900DL2011PLC217478	Minda NexGenTech Limited	Director	09/05/2012	13/04/2011	-	Active	NO
29	U51909DL2011PLC223728	MI TORICA INDIA LIMITED	Director	16/08/2011	16/08/2011	12/07/2013	Active	NO
30	U80903DL2014NPL265371	Suman Nirmal Minda Foundation	Director	25/02/2014	25/02/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. S. Sangeetha
Designation :	Secretary
Address :	J.14, Vinayagar Kovil Street, MMDA Colony, Arumbakkam, Chennai – 600106, Tamilnadu, India
Date of Appointment :	07.01.2013
PAN No.:	BWZPS2975N

MAJOR SHAREHOLDERS

AS ON 25.09.2013

Names of Shareholders	No. of Shares
Nirmal K. Minda	9400
Sudhir Jain	100
Naresh Subramania Warrier	100
Harish Chander Dhamija	100
Vikas Jain	100
Praveen Juneja	100
Debadas Panda	100
Eden Motors Limited, India	20000
SBR Auto Components Limited, India	20000
Kosei International Trade and Investment Company Limited, Hong Kong	36127100
Minda Investments Limited, India	12950000
Kosei Aluminum (Thailand) Company Limited, Thailand	18064100
Sheetal Farms Limited, India	10308800
Total	77500000

As on: 07.12.2013

Names of Allottees	No. of Shares
Kosei International Trade and Investment Company Limited, Hong Kong	2085486
Kosei Aluminum (Thailand) Company Limited, Thailand	1027180
Sheetal Farms Limited, India	1250000
Total	4362666

Equity Share Break up (Percentage of Total Equity)

AS ON 25.09.2013

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	69.92
Bodies corporate	30.06
Directors or relatives of Directors	0.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the manufacture, development and sale of aluminum wheels and other accessories / parts for automobile industry.

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	SRBC and Company LLP Chartered Accountants
Address :	6th and 7th Floor, A Block, Tidel Park (Module 601,701 and 702) No4, Rajiv Gandhi Salai Taramani , Chennai-600113, Tamilnadu, India
PAN No.:	ABSFS4151K
Ultimate Holding company :	Kosei Aluminum Company Limited, Japan
Holding company :	Kosei International Trade and Investment Company Limited, Hong Kong
Fellow Subsidiary company :	Kosei Aluminum (Thailand) Company Limited, Thailand
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Minda Industries Limited L74899DL1992PLC050333 Minda Investments Limited U74899DL1994PLC063761 Mindarika Private Limited U74899DL1995PTC073692 Minda Finance Limited L67120DL1985PLC021349 Minda Projects Limited U74300DL1996PLC083437 Sheetal Farms Limited U01400DL1987PLC236241

CAPITAL STRUCTURE

After: 25.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
95000000	Equity Shares	Rs.10/- each	Rs.950.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
81862666	Equity Shares	Rs.10/- each	Rs.818.627 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
95000000	Equity Shares	Rs.10/- each	Rs.950.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
77500000	Equity Shares	Rs.10/- each	Rs.775.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	775.000	325.000
(b) Reserves & Surplus	(207.344)	(30.555)
(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)	567.656	294.445
(3) Non-Current Liabilities
(a) long-term borrowings	339.268	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	1.075	0.401
Total Non-current Liabilities (3)	340.343	0.401
(4) Current Liabilities
(a) Short term borrowings	87.975	30.000
(b) Trade payables	123.608	27.755
(c) Other current liabilities	32.478	373.288
(d) Short-term provisions	6.135	0.000
Total Current Liabilities (4)	250.196	431.043
TOTAL	1158.195	725.889
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	902.934	110.936
(ii) Intangible Assets	0.289	0.000
(iii) Capital work-in-progress	41.846	532.097
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	13.452	30.520
(e) Other Non-current assets	24.346	14.261
Total Non-Current Assets	982.867	687.814
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	60.264	6.460
(c) Trade receivables	57.391	0.000
(d) Cash and cash equivalents	10.689	25.670
(e) Short-term loans and advances	46.984	5.945
(f) Other current assets	0.000	0.000
Total Current Assets	175.328	38.075
TOTAL	1158.195	725.889

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012
	SALES
		Income		109.678	0.000
		Other Income		14.468	0.000
		TOTAL (A)		124.146	0.000
Less	EXPENSES
		Cost of Materials Consumed		103.815	0.000
		Purchase of Stock-in-trade		0.724	0.000
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(16.670)	0.000
		Employee Benefits Expenses		47.790	7.745
		Other Expenses		129.834	20.616
		Prior Period Items		0.535
		TOTAL (B)		266.028	28.361
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			(141.882)	(28.361)
Less	FINANCIAL EXPENSES (D)			10.883	0.398
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			(152.765)	(28.759)
Less	DEPRECIATION/ AMORTISATION (F)			24.023	1.226
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			(176.788)	(29.985)
Less	TAX (H)			0.000	0.570
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			(176.788)	(30.555)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			(30.555)	0.000
	BALANCE CARRIED TO THE B/S			(207.344)	(30.555)
	EARNINGS IN FOREIGN CURRENCY			107.988	Nil
	IMPORTS
			Raw Materials	87.280	6.030
			Stores & Spares	10.211	1.243
			Capital Goods	54.274	330.571
			Purchase of Traded Goods	0.619	0.000
	TOTAL IMPORTS			152.384	337.844
	Earnings/(Loss) Per Share (Rs.)			(3.28)	(1.84)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
PAT / Total Income	(%)	(142.40)	NA
Net Profit Margin (PBT/Sales)	(%)	(161.19)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(15.84)	(15.47)
Return on Investment (ROI) (PBT/Networth)		(0.31)	(0.10)
Debt Equity Ratio (Total Debt /Networth)		0.75	0.10
Current Ratio (Current Asset/Current Liability)		0.70	0.09

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Share Capital	325.000	775.000
Reserves & Surplus	(30.555)	(207.344)
Net worth	294.445	567.656
long-term borrowings	0.000	339.268
Short term borrowings	30.000	87.975
Total borrowings	30.000	427.243
Debt/Equity ratio	0.102	0.753

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

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2013	As on 31.03.2012
LONG-TERM BORROWINGS
Borrowing from foreign companies	339.268	0.000
SHORT-TERM BORROWINGS
Working capital loans from banks	87.975	0.000
Intercorporate borrowings	0.000	30.000
Total	427.243	30.000

YEAR IN RETROSPECT

The Company had commenced its production activity in the month of August 2012 and within a period of 8 months the Company has achieved a turnover of Rs. 124.146 Millions.

FUTURE PROSPECTS

The future for Aluminium Alloy Wheel manufacturing business is fast developing in India due to the fact that there is a shift of preference by people to go for cars fitted with alloy wheels rather than traditional steel rims even in small cars sector. The supply - demand ratio is changing and currently the demand is building to a new �high' and there is seen a �short supply' in this segment. The company envisages a great future for the business of Aluminium Alloy Wheel manufacturing. The Indian government is also considering imposing additional duties for importing Aluminium Alloy Wheels from low cost production countries, which will give an indirect benefit on local wheel manufacturing units in terms of economics. To sustain in this cost competitive industry, the company is stabilizing the production gradually by increasing the production capacity from 25000 wheels to 60000 wheels by way of expansion and can see greener days very soon with a steady growth.

Corporate information

Subject is a public limited company and incorporated under the provisions of Companies Act, 1956. The Company is a Joint venture between Kosei Group of Japan and Minda Group in India, where in, Kosei and Minda holds 69.92 percent (March 31, 2012: 60 percent) and 30.08 percent (March 31. 2012: 40 percent) shareholdings respectively in the Joint Venture Company. The Subject is engaged in the manufacture, development and sale of aluminum wheels and other accessories /parts for automobile industry.

Note: No Charges Exist for Company 

FIXED ASSETS:

Tangible Assets

• Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Office Equipment
• Computer
• Vehicles

Intangible Assets

• Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.33
UK Pound	1	Rs.99.68
Euro	1	Rs.80.30

INFORMATION DETAILS

Information Gathered by :	NAY
Analysis Done by :	SUM
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	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		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	--

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