MIRA INFORM REPORT

Report Date :

28.05.2014

IDENTIFICATION DETAILS

Name :	KIRLOSKAR TOYOTA TEXTILE MACHINERY PRIVATE LIMITED (w.e.f.17.12.2012)
Formerly Known As :	KIRLOSKAR TOYODA TEXTILE MACHINERY PRIVATE LIMITED
Registered Office :	Plot No. 10-13, Phase II, Jigani Industrial Area, Jigani, Taluk Anekal, Bangalore - 560105, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.08.1995
Com. Reg. No.:	08-018529
Capital Investment / Paid-up Capital :	Rs. 2269.000 Millions
CIN No.: [Company Identification No.]	U99999KA1995PTC018529
PAN No.: [Permanent Account No.]	AAACK7425Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Selling of Textile Machinery and Auto Components.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 10600000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “TOYOTA INDUSTRIES CORPORATION, JAPAN”. It is an established company having satisfactory track record. A reserve of the company is low. However, the rating reflects company’s established track record of business operation marked by decent capital base of the company and financial as well as managerial support that company receives from its parent company. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of strong holding support, the company can be considered 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

MANAGEMENT NON-COOPERATIVE

(CONTACT NO.: 91-80-27826201)

LOCATIONS

Registered/ Head Office :	Plot No. 10-13, Phase II, Jigani Industrial Area, Jigani, Taluk Anekal, Bangalore - 560105, Karnataka, India
Tel. No.:	91-80-27826201-206/ 27826215
Fax No.:	91-80-27826207
E-Mail :	juneja@kttml.com mktg@kttml.com kttml@kttml.com kttmdel@kttml.com kttmcbe@kttml.com kttmbom@kttml.com
Website :	http://www.kttml.com
Textile Division :	Located at: v Delhi v Kolhapur v Coimbatore v Mumbai v Guntur

DIRECTORS

AS ON 21.06.2013

Name :

Mr. Masafumi Kunito

Designation :

Managing director

Address :

No. 705, 7^th Floor, Olmpus Tower II, Prestige Acropolis, No. 20, Hosur Road, Koramangala, Bangalore – 560059, Karnataka, India

Date of Birth/Age :

27.01.1959

Date of Appointment :

05.07.2012

PAN No.:

AJPPK5653B

DIN No.:

02685172

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U99999KA1995PTC018529	KIRLOSKAR TOYOTA TEXTILE MACHINERY PRIVATE LIMITED	Managing director	05/07/2012	01/06/2009	Active	NO
2	U35914KA2002PTC030335	TOYOTA KIRLOSKAR AUTO PARTS PRIVATE LIMITED	Director	21/06/2012	30/06/2009	Active	NO
3	U29253HR2010FTC048762	TOYOTA MATERIAL HANDLING INDIA PRIVATE LIMITED	Director	01/12/2012	01/12/2012	Active	NO

Name :

Mr. Vikram Shreekant Kirloskar

Designation :

Director

Address :

Kirloskar Residence, Kirloskar Business Park, Bellary Road, Hebbal, Bangalore – 560024, Karnataka, India

Date of Birth/Age :

19.11.1958

Date of Appointment :

14.08.1995

DIN No.:

00007907

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	L29113PN1920PLC000670	KIRLOSKAR BROTHERS LIMITED	Director	20/01/2010	18/08/1987	-	Active	NO
2	U31909KA1993PTC014893	KIRLOSKAR TECHNOLOGIES PRIVATE LIMITED	Director	11/07/2013	05/11/1993	-	Active	NO
3	U99999KA1995PTC018529	KIRLOSKAR TOYOTA TEXTILE MACHINERY PRIVATE LIMITED	Director	14/08/1995	14/08/1995	-	Active	NO
4	U34101KA1997PTC022858	TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED	Director	06/10/1997	06/10/1997	-	Active	NO
5	U34300KA1962PLC053582	KIRLOSKAR SYSTEMS LIMITED	Managing director	29/10/2012	29/09/1999	-	Active	NO
6	U35914KA2002PTC030335	TOYOTA KIRLOSKAR AUTO PARTS PRIVATE LIMITED	Director	25/06/2007	10/04/2002	-	Active	NO
7	L29120PN1974PLC110307	KIRLOSKAR PNEUMATIC COMPANY LIMITED	Director	28/06/2002	28/06/2002	-	Active	NO
8	L29112PN1978PLC088972	KIRLOSKAR INDUSTRIES LIMITED	Director	19/05/2004	19/05/2004	18/05/2012	Active	NO
9	L64202KA2000PLC027860	ONMOBILE GLOBAL LIMITED	Director	17/08/2007	24/07/2006	07/08/2008	Active	NO
10	U74996KA2008PTC044934	VIKRAMGEET INVESTMENTS AND HOLDINGS PRIVATE LIMITED	Director	11/01/2008	11/01/2008	-	Active	NO
11	U93090KA2008NPL045150	COMMON PURPOSE INDIA	Director	04/02/2008	04/02/2008	08/11/2010	Active	NO
12	U66010KA2008PTC045231	TOYOTA TSUSHO INSURANCE BROKER INDIA PRIVATE LIMITED	Director	08/02/2008	08/02/2008	27/12/2012	Active	NO
13	U64201PN1998PLC012654	QUADRANT COMMUNICATIONS LIMITED	Director	06/09/2010	07/10/2009	-	Active	NO
14	U34300KA1998PTC023708	DENSO KIRLOSKAR INDUSTRIES PRIVATE LIMITED	Director	27/09/2010	12/01/2010	-	Active	NO
15	U65993MH1972PTC016178	ASARA SALES AND INVESTMENT PRIVATE LIMITED	Director	14/09/2010	12/03/2010	-	Active	NO
16	U31102MH1965PLC013362	KIRLOSKAR PROPRIETARY LIMITED	Director	17/09/2010	12/03/2010	-	Active	NO
17	U85100KA2010PTC055258	TAKSHASILA HEALTHCARE AND RESEARCH SERVICE PRIVATE LIMITED	Nominee director	24/07/2012	22/09/2010	-	Active	NO
18	U29253HR2010FTC048762	TOYOTA MATERIAL HANDLING INDIA PRIVATE LIMITED	Director	06/02/2012	06/02/2012	-	Active	NO
19	U73100DL2011NPL228097	GLOBAL INNOVATION & TECHNOLOGY ALLIANCE	Nominee director	24/12/2012	24/02/2012	-	Active	NO
20	U85110KA2012PTC063508	TAKSHASILA HOSPITALS OPERATING PRIVATE LIMITED	Nominee director	19/06/2012	12/04/2012	-	Active	NO
21	U65900KA2012PTC064328	VSK HOLDINGS PRIVATE LIMITED	Director	11/06/2012	11/06/2012	-	Active	NO

Name :

Mr. Norio Sasaki

Designation :

Director

Address :

15-16, Tennoudai, Miyoshi-Shi Aichi 34209, Japan

Date of Birth/Age :

10.06.1953

Date of Appointment :

17.09.2010

DIN No.:

03125033

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U35914KA2002PTC030335	TOYOTA KIRLOSKAR AUTO PARTS PRIVATE LIMITED	Director	28/06/2011	24/06/2010	Active	NO
2	U99999KA1995PTC018529	KIRLOSKAR TOYOTA TEXTILE MACHINERY PRIVATE LIMITED	Director	17/09/2010	28/06/2010	Active	NO

Name :

Mr. Susumu Toyoda

Designation :

Director

Address :

177, Hachimanyama, Tenpaku-ku, Nagoya-shi, Aichi, Japan

Date of Birth/Age :

17.01.1967

Date of Appointment :

10.09.2011

DIN No.:

03583641

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U99999KA1995PTC018529	KIRLOSKAR TOYOTA TEXTILE MACHINERY PRIVATE LIMITED	Director	10/09/2011	29/06/2011	Active	NO

Name :

Mr. Koichi Makino

Designation :

Whole-time director

Address :

No. 9-A, 9^th Floor, Regency Heights, Cleveland Road, Bangalore – 560005, Karnataka, India

Date of Birth/Age :

03.08.1954

Date of Appointment :

21.06.2013

DIN No.:

06612069

Name :

Mr. Kiyotsugu Kurimoto

Designation :

Director

Address :

65, Nakashinden Hirashima-cho, Yatomi-shi, Aichi Ken 4980031 Japan

Date of Birth/Age :

26.04.1958

Date of Appointment :

07.04.2014

DIN No.:

06612247

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U99999KA1995PTC018529	KIRLOSKAR TOYOTA TEXTILE MACHINERY PRIVATE LIMITED	Whole-time director	07/04/2014	21/06/2013	Active	NO

Name :

Parasuraman Tirunelveli Ratnagiri

Designation :

Whole-time director

Address :

Flat No. 608, E Block, Brigade Gateway, # 26/1, Dr. Rajkumar Road, Opposite WTC, Malleswaram [West], Bangalore - 560055, Karnataka, India

Date of Birth/Age :

22.04.1964

Date of Appointment :

25.10.2013

DIN No.:

06695918

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 21.06.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Toyota Industries Corporation, Japan	215811017	95.11
Kirloskar Systems Limited, India	11085677	4.89
Total	226896694	100.00

AS ON 21.06.2013

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]	95.11
Bodies corporate	4.89
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Textile Machinery and Auto Components.

Products/ Services :

ITC Code No.	Product Descriptions
84452013	Spinning Ring Frame (Textile Machineries)
87089900	Transmission Part

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	· The Hongkong and Shanghai Banking Corporation Limited Dickenson Road, Bangalore - 560042, Karnataka, India

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	5^th Floor, Tower D, The Millenia, 1 and 2, Murphy Road, Ulsoor, Bangalore – 560008, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AAHFP0187A
Holding company :	Toyota Industries Corporation, Japan

CAPITAL STRUCTURE

AFTER 21.06.2013

Authorised Capital : Rs. 5236.200 Millions

Issued, Subscribed & Paid-up Capital : Rs. 5199.234 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
338,620,000	Equity Shares	Rs. 10/- each	Rs. 3386.200 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
226,896,694	Equity Shares	Rs. 10/- each	Rs. 2269.000 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	2269.000	2269.000	2426.200
(b) Reserves & Surplus	385.600	354.800	300.200
(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)	2654.600	2623.800	2726.400
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	47.800	44.700	50.300
Total Non-current Liabilities (3)	47.800	44.700	50.300
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	255.000	107.400	453.200
(c) Other current liabilities	267.900	244.300	414.600
(d) Short-term provisions	38.200	42.300	16.600
Total Current Liabilities (4)	561.100	394.000	884.400
TOTAL	3263.500	3062.500	3661.100
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1304.700	528.700	519.600
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	57.600	636.700	39.000
(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)	66.600	85.500	84.100
(d) Long-term Loan and Advances	216.500	96.000	74.500
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1645.400	1346.900	717.200
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	522.900	613.400	748.600
(c) Trade receivables	332.600	134.300	292.100
(d) Cash and cash equivalents	630.300	878.400	1599.600
(e) Short-term loans and advances	101.500	49.800	85.200
(f) Other current assets	30.800	39.700	218.400
Total Current Assets	1618.100	1715.600	2943.900
TOTAL	3263.500	3062.500	3661.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Gross Income	2950.000	2680.600	3094.900
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		226.700	256.300	434.600
Less	FINANCIAL EXPENSES		1.800	1.000	1.960
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		224.900	255.300	432.640
Less/ Add	DEPRECIATION/ AMORTISATION		139.800	120.000	177.190
	EXCEPTIONAL ITEM		0.000	1.700	0.000
	PROFIT BEFORE TAX		85.100	133.600	255.450
Less	TAX		27.700	52.600	91.450
	PROFIT AFTER TAX		57.400	81.000	164.000
	EARNINGS IN FOREIGN CURRENCY
		Textile Machine Export Income	294.800	208.000	0.000
		Sales Autoparts	0.090	0.000	0.000
		Exports to TICO and Others	0.000	0.000	307.000
		(Goods & Services) Sales to TKAP(EOU)	0.000	0.000	872.000
		Textile division sale to EOU	0.000	0.000	7.560
	TOTAL EARNINGS		294.890	208.000	1186.560
	Earnings Per Share (Rs.)		0.25	0.36	0.68

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	2.71	5.71	7.22
Return on Investment (ROI) (PBT/Networth)		0.03	0.05	0.09
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.88	4.35	3.33

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	2426.200	2269.000	2269.000
Reserves & Surplus	300.200	354.800	385.600
Net worth	2726.400	2623.800	2654.600
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	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	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 

GENERAL INFORMATION

Kirloskar Toyota Textile Machinery Private Limited is a joint venture between Toyota Industries Corporation, Japan and Kirloskar Group, India. The Company was incorporated in 1995 under provisions of Companies Act, 1956. The Company is engaged in the business of manufacturing and selling of Textile machinery and Auto components. Consequent to the approval of members at the extra-ordinary general meeting (EGM) held on November 06, 2012 and as approved by the Registrar of Companies, Karnataka, on December 17, 2012, the name of the Company has been changed from Kirloskar Toyoda Textile Machinery Private Limited to Kirloskar Toyota Textile Machinery Private Limited.

RESULTS OF OPERATIONS

The Company during the period April 2012 to Mar 2013 sold 213 Ring spinning frames comprising of 268,416 spindles compared to 223 Ring spinning frames comprising of 276,144 spindles during 2011-12. Textile sector is slowly improving from the global economic slowdown. In the meantime, power shortage in many states of India is contributing to the worries of this sector.

The sales of transmission division stood at 188,379 sets during 2012-13 against the sale of 152,850 during 2011-12. The sales volume increased by 23.24%. During the year the Company also started manufacturing new C Type transmission part. Total sales of C Type transmission sets stood at 33,448 sets during 2012-13.

The job work income in 2012-13 was Rs. 18.600 Millions compared to 2011-12 which was Rs. 24.600 Millions. This segment of business has also shown a reduction in turnover due to economic slowdown in Europe.

The Exports of textile machinery and parts during 2012-13 was about Rs. 294.700 Millions compared to 2011-12, which was Rs. 197.690 Millions, resulting in a increase in volume by 49%.

PROSPECTS FOR THE YEAR 2013-14

Prospects for the year 2013-14 for the various departments of the Company are as follows:

(1) Company has plans of expanding the existing Textile Machinery business to cover more products.

(2) The demand for Ring Spinning Frame is expected to be about 332,304 spindles (about Rs.1791.000 Millions)

(3) TICO exports are expected to be to Rs.118.300 Millions.

(4) Job work income conservative estimate at Rs.13.200 Millions.

(5) Transmission business is likely to have a turnover of Rs.1559.570 Millions.

FIXED ASSETS:

· Land

Buildings

Factory building

Plant and equipment

Factory equipments

Furniture and fixtures

Vehicles

Motor vehicles

Office equipment

Computer equipments

Other equipments

Know-how

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. 59.06
UK Pound	1	Rs. 99.61
Euro	1	Rs. 80.60

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	KAR
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.