MIRA INFORM REPORT

Report Date :

29.03.2014

IDENTIFICATION DETAILS

Name :	IGATE GLOBAL SOLUTIONS LIMITED (w.e.f. 23.06.2003)
Formerly Known As :	MASCOT SYSTEMS LIMITED (w.e.f. 31.01.2000) MASCOT SYSTEMS PRIVATE LIMITED
Registered Office :	Level II, Tower 3, Cyber City, Magarpatta City, Hadapsar, Pune – 411 013, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.12.1993
Com. Reg. No.:	08-145950
Capital Investment / Paid-up Capital :	Rs.127.640 millions
CIN No.: [Company Identification No.]	U85110PN1993PLC145950
PAN No.: [Permanent Account No.]	AABCM4573E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is primarily engaged in providing Information Technology ("IT") and IT - enabled operations offshore outsourcing solutions and services to large and medium-sized organizations using an offshore/onsite model.
No. of Employees :	21955 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 86679000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having a fine track record. Financial position of the company seems to be sound and healthy. Trade relations are fair. Business is active. Payment terms are reported to be regular. The company can be considered good 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.

INDIAN ECONOMIC OVERVIEW

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	IrAA- (Withdrawn)
Rating Explanation	Low credit risk and high credit quality.
Date	March, 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.

INFORMATION DECLINED

Management non-cooperative

(Tel. No.: 91-20-39842000/ 26693457)

LOCATIONS

Registered Office :	Level II, Tower 3, Cyber City, Magarpatta City, Hadapsar, Pune – 411 013, Maharashtra, India
Tel. No.:	91-20-39842000/ 26693457
Fax No.:	91-20-39842082
E-Mail :	mukund.srinath@igate.com pune@igate.com
Website :	http://www.igate.com
Location :	Owned
Headquarters :	Plot No:158-162P and 165-170P, EPIP Phase II, Whitefield, Bangalore – 560 066, Karnataka, India
Tel. No.:	91-80-41040000
Fax No.:	91-80-41259090
Training Centre :	iGATE Training Centre, Akshay Tech Park, Jayalashmi Exports and Imports, Plot No.72 and 73, EPIP Industrial Area, Whitefield, Bangalore – 560 066, Karnataka, India
Tel. No.:	91-80-39839700
Fax No.:	91-80-41259090
Global Delivery Centre :	Located at: · Bangalore · Chennai · Hyderabad · Mumbai · Navi Mumbai · Pune · Noida · Gandhinagar
Overseas Sales Office :	Located at: · Australia · China · Indonesia · Japan · Malaysia · Mauritius · Singapore
Overseas Global Delivery Centre :	Located at: · Australia · China

DIRECTORS

AS ON 18.12.2013

Name :	Mr. Ashok Kumar Trivedi
Designation :	Director
Address :	50, Friends Colony East, New Delhi – 110 065, India
Date of Birth/Age :	20.04.1949
Qualification :	M.B.A., M.Sc., B.Sc.
Date of Appointment :	27.12.1993
DIN No.:	00024566
Name :	Mr. Sunil Tekchand Wadhwani
Designation :	Vice Chairman
Address :	1110, Meridian Drive, Neville Wood Presto PA 15142, United States, USA 15142
Date of Birth/Age :	21.12.1952
Date of Appointment :	27.12.1993
DIN No.:	00380408
Name :	Mr. Ashok Vemuri
Designation :	Director
Address :	15, Oak Lane, Green Brook, New Jersey, USA 08812
Date of Birth/Age :	22.04.1968
Date of Appointment :	17.09.2013
DIN No.:	03545559
Name :	Mr. Sujit Sircar
Designation :	Whole-time Director
Address :	No.402, Vars Casa Rosa, 1^st Main, Pai Layout, Old Madras Road, Bangalore – 560 016, Karnataka, India
Date of Birth/Age :	27.04.1968
Qualification :	B.COM, F.C.A
Date of Appointment :	01.01.2010
DIN No.:	00026417
PAN No.:	ABVPS3124K

KEY EXECUTIVES

Name :	Mr. Mukund Srinath
Designation :	Secretary
Address :	8, Rashmi Lakshmi Road, 1^st Cross Shantinagar, Bangalore – 560 027 Karnataka, India
Date of Birth/Age :	26.11.1960
Date of Appointment :	02.11.2000
PAN No.:	AFSPS7009A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Names of Shareholders	No. of Shares
iGATE Inc., USA	9600000
iGATE Corporation, USA	3064378

AS ON 18.12.2013

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]	99.17
Bodies corporate	0.02
Other top fifty shareholders	0.81
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is primarily engaged in providing Information Technology ("IT") and IT - enabled operations offshore outsourcing solutions and services to large and medium-sized organizations using an offshore/onsite model.

GENERAL INFORMATION

No. of Employees :

21955 (Approximately)

Bankers :

· Citibank NA, 506-507, Level 5, Prestige Meridian 2, # 30, M.G. Road, Bangalore – 560 001, Karnataka, India

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Other loans and advances (Lease obligations relate to vehicles purchased under a financing arrangement)	38.360	24.360
Total	38.360	24.360

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Associates LLP Chartered Accountants
Address :	UB City, Canberra Block, 12^th and 13^th Floor, No.24, Vittal Malya Road, Bangalore – 560 051, Karnataka, India
PAN No.:	AABFS3421N
Holding Company :	· iGATE Inc., United States
Ultimate Holding Company:	· iGATE Corporation, United States
Subsidiary Companies :	Mascot Systems GmbH Patni Computer Systems Germany GmbH iGATE Infrastructure Management Services Limited iGATE Global Solutions Mexico S.A. de C.V. Patni Computer Systems Mexico S.A. de C.V. iGATE Computer Systems (UK) Limited Patni Computer Systems (Suzhou) Co Limited Patni Computer Systems (Czech) iGATE Computer Systems Japan Inc. iGATE (Singapore) Pte Limited Patni Computer Systems (Indonesia) iGATE Information Technologies (Nanjing) Co. Limited
Fellow Subsidiaries :	iGATE Technologies Inc. iGATE Technologies Inc., Canada PAN-Asia iGATE Solutions CHCS Services Inc. iGATE Information Services Private Limited iGATE Information Services (UK) Limited iGATE Ventures I, LP Pure Pay Partners, Inc. iGATE Management, Inc. iGATE Government Solutions Inc. iGATE Technologies, Luxembourg iGATE Mortgage Services
Related parties with whom transactions have taken place during the year :	iGATE Corporation Mascot Systems GmbH iGATE Infrastructure Management Services Limited iGATE Global Solutions Mexico S.A. de C.V. iGATE Computer Systems (UK) Limited Patni Computer Systems (Suzhou) Co Limited iGATE Information Services Private Limited iGATE Computer Systems Japan Inc. iGATE (Singapore) Pte Limited Patni Telecom Solutions (UK) Limited iGATE Technologies Inc. iGATE Technologies Inc., Canada PAN-Asia iGATE Solutions CHCS Services Inc. iGATE Mastech Inc.

CAPITAL STRUCTURE

AS ON 18.12.2013

Authorised Capital:

No. of Shares	Type	Value	Amount
29950000	Equity Shares	Rs.10/- each	Rs.299.500 millions
10800000	Preference Shares	Rs.10/- each	Rs.108.000 millions
	Total		Rs.407.500 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
29433347	Equity Shares	Rs.10/- each	Rs.294.333 millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 millions
13000000	Preference Shares	Rs.10/- each	Rs.130.000 millions
	Total		Rs.260.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12764378	Equity Shares	Rs.10/- each	Rs.127.640 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	127.640	127.640	127.600
(b) Reserves & Surplus	21355.000	11172.000	9819.800
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	187.000	0.000	0.000
Total Shareholders’ Funds (1)+(2)	21669.640	11299.640	9947.400
(3) Non-Current Liabilities
(a) Long-term borrowings	38.360	24.360	27.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	23.000	17.000	25.100
(d) Long-term provisions	1501.000	72.000	53.300
Total Non-current Liabilities (3)	1562.360	113.360	105.400
(4) Current Liabilities
(a) Short term borrowings	2551.000	2645.000	1337.900
(b) Trade payables	4448.000	870.000	802.500
(c) Other current liabilities	25188.000	1251.000	918.700
(d) Short-term provisions	358.000	376.000	315.100
Total Current Liabilities (4)	32545.000	5142.000	3374.200
TOTAL	55777.000	16555.000	13427.000
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6951.000	1808.000	1722.600
(ii) Intangible Assets	364.000	98.000	95.200
(iii) Capital work-in-progress	720.000	150.000	338.300
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1911.000	7600.000	326.000
(c) Deferred tax assets (net)	574.000	344.000	118.300
(d) Long-term Loan and Advances	3941.000	811.000	854.500
(e) Other Non-current assets	7.000	0.000	0.000
Total Non-Current Assets	14468.000	10811.000	3454.900
(2) Current assets
(a) Current investments	25893.000	2101.000	1554.800
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	8228.000	1583.000	1893.300
(d) Cash and cash equivalents	2497.000	708.000	5515.500
(e) Short-term loans and advances	2859.000	424.000	353.100
(f) Other current assets	1832.000	928.000	655.400
Total Current Assets	41309.000	5744.000	9972.100
TOTAL	55777.000	16555.000	13427.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	34195.000	11561.000	11845.500
		Other Income	2098.000	123.000	278.100
		TOTAL (A)	36293.000	11684.000	12123.600
Less	EXPENSES
		Employee benefit expenses	17639.000	7068.000	6563.300
		Other expenses	10467.000	2543.000	2631.000
		Provision for losses of subsidiary written back	0.000	0.000	(70.800)
		TOTAL (B)	28106.000	9611.000	9123.500
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8187.000	2073.000	3000.100
Less	FINANCIAL EXPENSES (D)		64.000	45.000	7.900
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8123.000	2028.000	2992.200
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1277.000	431.000	359.300
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		6846.000	1597.000	2632.900
Less	TAX (H)		1497.000	191.000	104.500
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		5349.000	1406.000	2528.400
	EARNINGS IN FOREIGN CURRENCY		33965.000	11561.000	11845.500
	Earnings/ (Loss) Per Share (Rs.)		181.73	110.22	198.08

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	14.74	12.04	20.86
Net Profit Margin (PBT/Sales)	(%)	20.02	13.82	22.23
Return on Total Assets (PBT/Total Assets}	(%)	13.02	18.87	20.82
Return on Investment (ROI) (PBT/Networth)		0.32	0.14	0.26
Debt Equity Ratio (Total Debt/Networth)		0.12	0.24	0.14
Current Ratio (Current Asset/Current Liability)		1.27	1.12	2.96

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	127.600	127.640	127.640
Reserves & Surplus	9819.800	11172.000	21355.000
Share Application money pending allotment	0.000	0.000	187.000
Net worth	9947.400	11299.640	21669.640
long-term borrowings	27.000	24.360	38.360
Short term borrowings	1337.900	2645.000	2551.000
Total borrowings	1,364.900	2,669.360	2,589.360
Debt/Equity ratio	0.137	0.236	0.119

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)
Revenue from operations	11845.500	11561.000	34195.000
		-2.402	195.779

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	11845.500	11561.000	34195.000
Profit	2528.400	1406.000	5349.000
	21.34%	12.16%	15.64%

LOCAL AGENCY FURTHER INFORMATION

Details of Current Maturities of Long Term Debt: Not Available

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	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	90091858	29/04/2002	670,000,000.00	STANDARD CHARTERED BANK	MAHATMA GANDHI ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	-
2	90089314	25/08/1986	7,500,000.00	AMERICAN EXPRESS BANK LIMITED	ORIENTAL HOUSE, D.N. ROAD; FORT, BOMBAY, MAHARASHTRA - 400001, INDIA	-
3	90083400	12/07/1985	13,000,000.00	BANK OF AMERICA NATIONAL TRU AND SERVICES ASSOCIATION	EXPRESS TOWERS, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-
4	90089281	04/07/1985	6,000,000.00	AMERICAN EXPRESS INTERNATIONAL BANKING CORPORATION	D.N. ROAD, FORT, BOMBAY, MAHARASHTRA - 400001, INDIA	-
5	90089266	19/11/1984	2,000,000.00	AMERICAN EXPRESS INTERNATIONAL BANKING CORPORATION	ORIENTAL BUILDING, DR. D.N. ROAD, BOMBAY, MAHARASHTRA - 400001, INDIA	-

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT-TERM BORROWINGS
Other loans and advances	2551.000	2645.000
Total	2551.000	2645.000

CORPORATE INFORMATION:

The Company is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is primarily engaged in providing Information Technology ("IT") and IT - enabled operations offshore outsourcing solutions and services to large and medium-sized organizations using an offshore/onsite model. The Company has its branches in United States, Canada, Japan, Singapore, Australia, Sweden, Switzerland, United Kingdom, Belgium, Denmark, France, Finland, Germany, Ireland and Netherlands. IT services and IT-enabled operation offshore outsourcing solutions is delivered using the offshore centers located in Bangalore, Hyderabad, Chennai, Noida, Mumbai, Pune and Gandhinagar in India. During the year, the registered office of the Company has been shifted from Bangalore, Karnataka to Pune, Maharashtra. On May 12, 2011, the Company acquired 11% of equity interest in iGATE Computer Systems Limited ('iCS') (formerly known as Patni Computer Systems Limited). The Company, along with its ultimate holding company and its subsidiaries issued a public announcement regarding the proposed acquisition of remaining iCS equity shares and delisting the fully paid-up equity shares of iCS. iCS then applied to the Bombay stock exchange (BSE) and the National stock exchange (NSE) to voluntarily delist its equity shares from those exchanges. Upon completion of the purchase of iCS?s remaining shares, trading was discontinued as on 21 May 2012 and iCS’s shares were delisted from the of the BSE and the NSE as on 28 May 2012. Subsequently, iCS applied for voluntary delisting of its ADSs from the New York stock exchange (NYSE) and for de-registration of the ADSs under the Securities Exchange Act of 1934. The ADSs were delisted from the NYSE after the close of trading on September 28, 2012. The Company also purchased 35.16% shares for a cash consideration of Rs.24796.000 millions. On October 26, 2012, the Company's Board of Directors approved the plan to merge iCS with the Company and filed a scheme of amalgamation with the High Court in Mumbai, India on October 29, 2012. On 29 December 2012, iCS sent to its shareholders a notice convening a meeting of shareholders to approve the merger scheme (as filed with the High Court) of iCS with iGS. The Company received High Court Order on May 10, 2013 for merger with iCS effective April 1, 2012, being the appointed date.

Note:

The Registered office of the company has been shifted from, Nos.158-162(P) and 165(P)-170(P), EPIP, Phase II, White Field, Bangalore – 560 066, Karnataka, India, to the prse4nt address w.e.f. 08.10.2012.

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Leasehold Improvements

Intangible Assets

· Goodwill

· 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 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] 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.60.10
UK Pound	1	Rs.99.85
Euro	1	Rs.82.57

INFORMATION DETAILS

Information Gathered by :	PRT
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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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