MIRA INFORM REPORT

Report Date :

18.06.2014

IDENTIFICATION DETAILS

Name :	HYVA (INDIA) PRIVATE LIMITED (w.e.f. 24.01.2011)
Formerly Known as :	HYVA INDIA TRANSPORTATION SYSTEMS PRIVATE LIMITED
Registered Office :	Plot No. EL-215, M.I.D.C, Mahape, Navi Mumbai – 400701, Maharashtra
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	02.09.1996
Com. Reg. No.:	11-102299
Capital Investment / Paid-up Capital :	Rs. 12.510 Millions
CIN No.: [Company Identification No.]	U50100MH1996PTC102299
PAN No.: [Permanent Account No.]	AAACH2006C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Hydraulic Cylinders, Garbage Compactors and also Fabrication of Tipper Bodies, Tipping Trailers, Mounting/ Installation of Hydraulic Systems.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 9470000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Management of the company has failed to file its financial for the year 2013 with the government department. Financial position of the company seems to be decent. Trade relations are reported to be fair. Business is active. Payment terms 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 – 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 DECLINED BY

Name :	Mr. Sudhir
Designation :	Accounts Department
Contact No.:	91-22-67618888
Date :	17.06.2014

Name :	Mrs. Asha
Designation :	Accounts Department
Contact No.:	91-22-67618888
Date :	17.06.2014

LOCATIONS

Registered Office :	Plot No. EL-215, M.I.D.C, Mahape, Navi Mumbai – 400701, Maharashtra, India
Tel. No. :	91-22-67618888
Fax No. :	91-22-27672182
E-Mail :	asha@hyvaindia.com
Factory :	Located at · Navi Mumbai · Pune · Bengaluru · Jamshedpur

DIRECTORS

As on 29.06.2013

Name :	Mr. Sudhir Govind Mhetre
Designation :	Alternate Director
Address :	Ramdev Complex, Flat No. B-204, Sector-19, Airoli, Navi Mumbai - 400705, Maharashtra, India
Date of Appointment :	23.06.2012
DIN No. :	02549626
Name :	Brice Henry Bricheateau De La Morandiere
Designation :	Director
Address :	B Rue Du Vieux Colombier, Paris, 75006, , France
Date of Appointment :	13.10.2011
DIN No. :	05106756
Name :	Mr. Ranjan Kar
Designation :	Managing director
Address :	B-12, Nidhi CHS, Sector 16A, Vashi, Navi Mumbai - 400703, Maharashtra, India
Date of Appointment :	16.10.2012
PAN No. :	AADPK1453G
DIN No. :	06439953
Name :	Mr. Rupayan Santanu Majumdar
Designation :	Director
Address :	B-1/103, Hyde Park, Ghodbunder Road, Manpada, Thane – 400607, Maharashtra, India
Date of Birth/Age :	16.04.1960
Date of Appointment :	02.09.2009
PAN No. :	AEBPN9647Q
DIN No. :	02780347

KEY EXECUTIVES

Name :	Mr. Sudhir
Designation :	Accounts Department
Name :	Mrs. Asha
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.06.2013

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

As on 29.06.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Hydraulic Cylinders, Garbage Compactors and also Fabrication of Tipper Bodies, Tipping Trailers, Mounting/ Installation of Hydraulic Systems.

Products :

Item Code No. (ITC Code)	Product Description
87079000	Tipper Bodies
87082900	Hydraulic kits with cylinders

PRODUCTION STATUS (AS ON 31.12.2010)

Particulars	Unit	Actual Production
Tipper Bodies	Nos.	8744
Hydraulic Cylinders (Including for captive consumption)	Nos.	18968
Compactors	Nos.	42
Fiftth Wheel Coupling	Nos.	81

NOTE:

The installed capacity of the company’s products cannot be determined as the company’s products can be manufactured in different types and sizes as per customers needs and requirements.

Actual production includes quantities manufactured by others on job work basis.

The above does not include products where assembly/ mounting operations are carried out.

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	· Citi Bank N.A., Bandra Kurla Complex, G - Block; Bandra East, Mumbai - 400051, Maharashtra, India · ABM Amro Bank N.V., 14, Veer Nariman Road, Mumbai - 400023, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Cooper Chartered Accountants
Address :	Mumbai, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAEFP3641G
Holding Company :	· Hyva Holding B.V., Netherlands - Ultimate Holding Company (upto April 13, 2011) · Hyva Global B.V., Netherlands - Ultimate Holding Company (effective April 13, 2011)
Fellow Subsidiary Company :	· Hyva do Brasil Hidráulica Limited · Technamics B.V. · Hyva Mechanics (Yang Zhou) Limited · Hyva (UK) Limited · Hyva Ibérica S.A. · Georg Hydraulik GmbH · Hyva International B.V · Hyva Thailand Company Limited · Tecnomet S.R.L · Amco Veba S.R.L · Ferrari International, SpA · PT Hyva Indonesia

CAPITAL STRUCTURE

As on 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs.10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,251,020	Equity Shares	Rs.10/- each	Rs. 12.510 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	12.510	12.510
(b) Reserves & Surplus	2354.944	2198.892
(c) Money received against Share Warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	2367.454	2211.402
(3) Non-Current Liabilities
(a) long-term Borrowings	0.000	0.000
(b) Deferred Tax Liabilities (Net)	0.000	0.000
(c) Other Long Term Liabilities	0.000	0.000
(d) long-term Provisions	14.987	14.493
Total Non-current Liabilities (3)	14.987	14.493
(4) Current Liabilities
(a) Short Term Borrowings	115.492	78.176
(b) Trade Payables	694.468	1370.097
(c) Other Current Liabilities	119.215	126.205
(d) Short-term Provisions	30.957	45.968
Total Current Liabilities (4)	960.132	1620.446
TOTAL	3342.573	3846.341
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible Assets	345.246	379.231
(ii) Intangible Assets	7.901	7.282
(iii) Capital Work-in-Progress	0.988	1.820
(iv) Intangible assets under Development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred Tax Assets (net)	59.671	52.894
(d) Long-term Loan and Advances	112.129	117.698
(e) Other Non-current Assets	5.264	4.901
Total Non-Current Assets	531.199	563.826
(2) Current assets
(a) Current Investments	0.000	0.000
(b) Inventories	786.202	1638.610
(c) Trade Receivables	790.658	1136.461
(d) Cash and Cash Equivalents	901.703	120.222
(e) Short-term Loans and Advances	326.021	385.629
(f) Other Current Assets	6.790	1.593
Total Current Assets	2811.374	3282.515
TOTAL	3342.573	3846.341

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		12.510
2] Share Application Money		0.005
3] Reserves & Surplus		1819.406
4] (Accumulated Losses)		0.000
NETWORTH		1831.921
LOAN FUNDS
1] Secured Loans		3.367
2] Unsecured Loans		0.000
TOTAL BORROWING		3.367
DEFERRED TAX LIABILITIES		0.000
TOTAL		1835.288
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		336.136
Capital work-in-progress		37.302
INVESTMENT		0.000
DEFERRED TAX ASSETS		44.300
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	945.472
	Sundry Debtors	710.215
	Cash & Bank Balances	333.490
	Other Current Assets	1.713
	Loans & Advances	206.027
Total Current Assets		2196.917
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	592.594
	Other Current Liabilities	52.057
	Provisions	134.716
Total Current Liabilities		779.367
Net Current Assets		1417.550
MISCELLANEOUS EXPENSES		0.000
TOTAL		1835.288

PROFIT & LOSS ACCOUNT

PARTICULARS		31.12.2012	31.12.2011
SALES
	Income	5892.840	6700.580
	Other Income	NA	NA
	TOTAL	NA	NA
EXPENSES
	TOTAL	NA	NA
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		334.690	660.880
FINANCIAL EXPENSES		4.150	1.080
DEPRECIATION/ AMORTISATION		95.260	93.350
PROFIT/ (LOSS) BEFORE TAX		235.270	566.440
TAX		79.220	186.960
PROFIT/ (LOSS) AFTER TAX		156.050	379.490
EARNINGS IN FOREIGN CURRENCY		427.170	141.290
IMPORTS		NA	NA
Earnings / (Loss) Per Share (Rs.)		124.74	303.34

PARTICULARS		31.12.2010
SALES
	Income	5238.640
	Other Income	NA
	TOTAL (A)	NA
EXPENSES
	TOTAL (B)	NA
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		659.570
FINANCIAL EXPENSES (D)		2.530
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		657.040
DEPRECIATION/ AMORTISATION (F)		75.960
PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		581.080
TAX (H)		206.060
PROFIT/ (LOSS) AFTER TAX (G-H) (I)		375.020
EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	94.458
	Commission	1.947
TOTAL EARNINGS		96.405
IMPORTS
	Raw Materials and Components	1161.639
	Stores & Spares	8.016
	Capital Goods	16.721
TOTAL IMPORTS		1186.376
Earnings / (Loss) Per Share (Rs.)		299.77

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
Net Profit Margin (PBT/Sales)	(%)	3.99	8.45	11.09
Return on Total Assets (PBT/Total Assets}	(%)	7.17	14.94	22.94
Return on Investment (ROI) (PBT/Networth)		0.10	0.26	0.32
Debt Equity Ratio (Total Debt/Networth)		0.05	0.04	0.00
Current Ratio (Current Asset/Current Liability)		2.93	2.03	2.82

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2012	31.12.2011
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	12.510	12.510
Reserves & Surplus	2198.892	2354.944
Net worth	2211.402	2367.454
long-term borrowings	0.000	0.000
Short term borrowings	78.176	115.492
Total borrowings	78.176	115.492
Debt/Equity ratio	0.035	0.049

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2010	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	5238.640	6700.580	5892.840
		27.907	(12.055)

NET PROFIT MARGIN

Net Profit Margin	31.12.2010	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	5238.640	6700.580	5892.840
Profit	375.020	379.490	156.050
	7.16%	5.66%	2.65%

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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

UNSECURED LOANS

PARTICULAR	31.12.2012 (Rs. In Millions)	31.12.2011 (Rs. In Millions)
SHORT TERM BORROWINGS
Working capital loans from banks	115.492	78.176
Total	115.492	78.176

NOTE: Buyers Credit Loan from Banks (Secured by Promissory Note in favour of Bankers).

CHANGE OF ADDRESS

The registered office of the company has been shifted from Plot No. C-255, MIDC, Pawane Village, Navi Mumbai - 400705, Mahrashtra, India to the present address w.e.f. 23.12.2006.

COMPANY PROFILE

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

BUSINESS SCENARIO

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

BUSINESS OPERATIONS

Management is proposing to invest in a cylinder capacity over three stages. The primary reason is volume growth in India, additional product now made in India (UMB/E) and additional customers i.e. Daimler, Volvo and Scania. The investment is for an additional 40k cylinder capacity (10k 2013, 20k 2014, 10k 2016). The nature of capacity expansion allows incremental volume at varying levels of investment. This proposal ensures Hyva’s continued business with a growing customer base in the Indian market, and also allows their exports to grow significantly to emerging markets like MEA. The investment is $3.5M in tranches of $0.6M, $2.3M, $0.6M. Management is seeking approval for Tipper Factory at Chennai, which will mainly cater to Daimler. Total Capex requirement of $2.7 M will be invested out of internal accrual. Overall the project expected pay back is in 4th year and it´s NPV is $27.5 M @ 15,8% Discounting rates in 10 years. DIVIDEND In view of the substantial expansion undertaken by the Company, the Directors do not recommend any dividend for the year ended 31st December, 2012.

CONTINGENT LIABILITIES:

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

Notes:

i. Future cash outflows in respect of above, if any, are determined only on receipt of judgement/ decision pending with various

ii. The Company has received demand of Rs. 522.089 Millions (Previous Year: Rs. 492.716 Millions) towards excise duty from the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 against which, it has filed replies/ appeals the Management, the additional excise duty under these orders would aggregate to Rs. 94.814 Millions (Previous Year: Rs. by them, as against the excise duty of Rs. 522.089 Millions (Previous Year: Rs. 492.716 Millions) demanded by the authorities. acknowledge the aforesaid amount computed by the Management. Based on legal advice obtained, the Company has a demand and accordingly, the amount of Rs. 427.275 Millions (Previous Year: Rs. 424.170 Millions) is not considered as contingent (Previous Year: Rs. 68.547 Millions) is reimbursable from a customer, considering the confirmation received from the customer the customer towards this obligation.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Computer Equipments

· Other Equipments

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making anyprohibited 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.60.37
UK Pound	1	Rs.102.48
Euro	1	Rs.81.87

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	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		49

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.