MIRA INFORM REPORT

Report Date :

10.11.2014

IDENTIFICATION DETAILS

Name :	VALEO INDIA PRIVATE LIMITED (w.e.f. 12.11.2010)
Formerly Known As :	VALEO ENGINEERING CENTER (INDIA) PRIVATE LIMITED
Registered Office :	Block A, 4^th Floor, Tecci Park, No. 285, Rajiv Gandhi Salai (OMR Road), Sholinganallur, Chennai - 600119, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	29.12.2005
Com. Reg. No.:	18-081914
Capital Investment / Paid-up Capital :	Rs. 1449.247 Millions
CIN No.: [Company Identification No.]	U29130TN2005PTC081914
TAN No.: [Tax Deduction & Collection Account No.]	CHEC11087G
PAN No.: [Permanent Account No.]	AACCV1939N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Alternators and Starter Motors
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Net worth of the company has been eroded due to accumulated loss incurred from its operations. However, Business is active. Payment terms are reported to be slow. The company can be considered for business dealings on safe and secured 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DENIED BY

Management non co-operative (91-44-22505000)

LOCATIONS

Registered Office :	Block A, 4^th Floor, Tecci Park, No. 285, Rajiv Gandhi Salai (OMR Road), Sholinganallur, Chennai - 600119, Tamilnadu, India
Tel. No.:	91-44-22505000 / 66715500 / 66235000
Fax No.:	91-44-22505011
E-Mail :	meenakshisundaram.subra manian@valeo.com
Website :	http://www.valeo.com
Factory :	Engine and Electrical Systems, Gat No. 24, 744 and 745 Village-Lonikand, Taluka Haveli, India

DIRECTORS

As on 29.09.2014

Name :

Mr. Ashok Kumar Belani

Designation :

Managing Director

Address :

Flat No. 1412, Building No. 14, Clover Highland, Near NIBM Road, Pune – 411048, Maharashtra, India

Date of Birth/Age :

01.05.1960

Qualification :

B.E

Date of Appointment :

12.11.2013

DIN No.:

02153002

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	U29299PN2008PLC132935	ISRI JC AUTOMOTIVE SEATING LIMITED	Director	08/04/2009	16/10/2008	06/05/2013	Active	NO
2	U34300DL2007PTC157344	MINDA VALEO SECURITY SYSTEMS PRIVATE LIMITED	Director	11/11/2013	11/11/2013	18/02/2014	Active	NO
3	U51505DL2008PTC179801	VALEO LIGHTING SYSTEMS INDIA PRIVATE LIMITED	Director	30/09/2014	12/11/2013	-	Active	NO
4	U29130TN2005PTC081914	VALEO INDIA PRIVATE LIMITED	Managing director	12/11/2013	12/11/2013	-	Active	NO
5	U29130TN1997PTC037909	AMALGAMATIONS VALEO CLUTCH PRIVATE LIMITED	Director	13/11/2013	13/11/2013	-	Active	NO
6	U29309TN1997PLC038508	VALEO FRICTION MATERIALS INDIA LIMITED	Director	04/08/2014	26/11/2013	-	Active	NO
7	U50100TN2012PTC084043	VALEO SERVICE INDIA AUTO PARTS PRIVATE LIMITED	Director	30/09/2014	01/07/2014	-	Active	NO

Name :

Mr. Claude Paul Marie Gislain Leichle

Designation :

Director

Address :

04. Rue De L" Ariego. Roquettes, 31120, France

Date of Birth/Age :

13.12.1948

Date of Appointment :

30.12.2011

DIN No.:

02294104

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	U51505DL2008PTC179801	VALEO LIGHTING SYSTEMS INDIA PRIVATE LIMITED	Additional director	28/08/2008	28/08/2008	09/01/2009	Active	NO
2	U31908TN2007PTC081836	VALEO ENGINE AND ELECTRICAL SYSTEMS INDIA PRIVATE LIMITED	Director	09/12/2008	09/12/2008	-	Amalgamated	NO
3	U29130TN2005PTC081914	VALEO INDIA PRIVATE LIMITED	Director	30/12/2011	17/02/2011	-	Active	NO

Name :

Mr. Sanjay Sethi

Designation :

Director

Address :

3157, sector 23, Gurgaon – 122001, Haryana, india

Date of Birth/Age :

10.08.1970

Date of Appointment :

29.09.2014

DIN No.:

02796512

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	U24117TN1952PLC005704	DELPHI-TVS DIESEL SYSTEMS LIMITED	Director appointed in casual vacancy	17/09/2009	17/09/2009	29/03/2012	Active	NO
2	U29130TN2005PTC081914	VALEO INDIA PRIVATE LIMITED	Director	29/09/2014	29/09/2014	-	Active	NO

Name :

Mr. Jabbarali Mehabubali Inamdar

Designation :

Additional Director

Address :

Flat No. 201, Pudumjee Park, S. No 989 MH, Near Nana Peth, Pune – 411002, Maharashtra, India

Date of Birth/Age :

02.06.1966

Date of Appointment :

26.06.2014

DIN No.:

06877596

Name :

Mr. Visarankkottai Berchmans Dominicsavio

Designation :

Director

Address :

Flat 2/1, Vsr Casstle, Pillair Koli Street, Thuraipakkam, Chennai – 600097, Tamilnadu, India

Date of Birth/Age :

24.11.1958

Date of Appointment :

29.09.2014

DIN No.:

06932421

KEY EXECUTIVES

Name :	Mrs. S Meenakshi Sundaram
Designation :	Secretary
Address :	No.4.11 Main Road, Nggo Nagar, Tirjsinravur. R.S., Chennai – 602024, Tamilnadu, India
Date of Birth/Age :	20.06.1971
Date of Appointment :	18.09.2009
Pan No.:	AISPS5179E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2014

Names of Shareholders	No. of Shares	% of holding
Valeo Bayen S.A.S., France	189504420	99.78
Valeo Finance S.A.S., France	402600	0.21
Equipment 11, France	17705	0.01
Total	189924725	100.00

Equity Share Break up (Percentage of Total Equity)

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Alternators and Starter Motors.

Products :

Item Code No. (ITC Code)	Product Description
85114000	Starters, Alternators - Unit of Measurement

Exports :

Not Divulged

Imports :

Not Divulged

GENERAL INFORMATION

Suppliers :	Not Divulged
Customers :	Not Divulged
No. of Employees :	Not Divulged
Bankers :	Not Divulged
Facilities :	--

Banking Relations :	---
Auditors :
Name :	S R B C and Company Chartered Accountant
Address :	6^th and 7^th floor, “A” Block, Tidel Park, (Module 601, 701 and 702) No 4, Rajiv Gandhi Sala, Taramani, Chennai – 600113, Tamilnadu, India
PAN No.:	ACHFS9117R
Holding Company :	Valeo Bayen, France
Ultimate Holding Company :	Valeo S.A, France
Entities under common control (restricted to where transactions exist) :	· Valeo Sistemas Automotivos , Brazil · Valeo Equipement Electrique Moteur, St Quentin Fallavie · Valeo Sistemas Electronics, SA, Mexico · Shanghai Valeo Automotive Electrical Systems Company Limited · Valeo Electric and Electronic Systems Sp.ZO.O., Poland · Valeo Japan Company Limited · Valeo Oto Sist A.S., Turkey · Valeo Electrical Systems Korea Limited · Valeo Equip. Electriques Moteu-Eda · Valeo Air Management, Shanghai · Valeo Engine And Electrical Systems, Campinas, Brazil · Valeo Systèmes Electriques, Etaples-Sur-Mer, France · Valeo Management ( Beijing) Company Limited, China · Amalgamations Valeo Clutch India Private Limited CIN No.: U29130TN1997PTC037909 · Minda Valeo Security Systems Private Limited CIN No.: U34300DL2007PTC157344 · Nanjing Valeo Clutch Comapny Limited, China · Priti Suri Associates, India · Shanghai Valeo Automobile, China · Taizhou Valeo Wenling Aut, China · Valeo Systemes Thermique, France · Valeo Autosystemy Sp.Zo.O, Poland · Valeo Compressor, France · Valeo Eclairage Signalisa, France · Valeo Electric And Electricals , Poland · Valeo Embrayage, France · Valeo Engine and Electrical,South Korea · Valeo Engine And Electric, France · Valeo Equipments Electriques , France · Valeo Etudes Electroniques, France · Valeo Frizioni, Italy · Valeo Interior Controls, France · Valeo Japan Company Limited · Valeo Lighting Hubei Tech, China · Valeo Lighting Systems, France · Valeo Management Beijing, China · Valeo Management Services, France · Valeo Pyeonghwa Co Limited, South Korea · Valeo Schalter And Sensor, Germany · Valeo Security Systems, France · Valeo Service India Autoparts Private Limited CIN No.: U50100TN2012PTC084043 · Valeo Service, France · Valeo Siam Thermal Systems Company Limited, Thailand · Valeo Systemes Dessuyage, France · Valeo Systemes Electrique, France · Valeo Systemes Thermiques, France · Valeo Thermal Systems Japan Corporation, Japan · Valeo Thermique Moteu, France · Valeo Ths Tpt, France · Valeo Transmissions, Usa · Valeo Unisia Transmission, Japan · Vec P2 Ams Division,France
Significant Influence :	· Valeo Lighting Systems India Private Limited CIN No.: U51505DL2008PTC179801 · Priti Suri and Associates (Till March 22, 2012)

CAPITAL STRUCTURE

As on 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
250075300	Equity Shares	Rs.10/- each	Rs. 2500.753 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
189924725	Equity Shares	Rs.10/- each	Rs. 1899.274 Millions

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
250753000	Equity Shares	Rs.10/- each	Rs. 2507.530 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
144924725	Equity Shares	Rs.10/- each	Rs. 1449.247 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1449.247	1189.247	689.247
(b) Reserves & Surplus	(1808.350)	(1398.669)	(463.966)
(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)	(359.103)	(209.422)	225.281
(3) Non-Current Liabilities
(a) long-term borrowings	33.333	166.666	300.000
(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	20.730	36.111	16.560
Total Non-current Liabilities (3)	54.063	202.777	316.560
(4) Current Liabilities
(a) Short term borrowings	787.913	677.503	147.973
(b) Trade payables	1260.814	711.867	871.427
(c) Other current liabilities	299.867	219.773	132.127
(d) Short-term provisions	51.327	39.583	30.937
Total Current Liabilities (4)	2399.921	1648.726	1182.464
TOTAL	2094.881	1642.081	1724.305
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	472.244	364.538	480.516
(ii) Intangible Assets	45.605	53.582	70.375
(iii) Capital work-in-progress	26.262	61.225	70.551
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	122.632	82.052	73.964
(e) Other Non-current assets	1.428	1.427	1.428
Total Non-Current Assets	668.171	562.824	696.834
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	445.998	296.394	374.421
(c) Trade receivables	500.951	322.262	305.719
(d) Cash and cash equivalents	17.890	41.791	14.385
(e) Short-term loans and advances	446.797	391.762	332.946
(f) Other current assets	15.074	27.048	0.000
Total Current Assets	1426.710	1079.257	1027.471
TOTAL	2094.881	1642.081	1724.305

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income
		Other Income
		TOTAL	NA	NA	NA
Less	EXPENSES TOTAL		NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(294.751)	(484.823)	(451.719)
Less/ Add	DEPRECIATION/ AMORTISATION		100.912	157.922	141.522
Add	EXCEPTIONAL ITEMS		0.000	(286.300)	0.000
Add	PRIOR PERIOD ITEMS		(14.018)	(5.658)	(47.389)
	PROFIT BEFORE TAX		(409.681)	(934.703)	(640.629)
Less	TAX		0.000	0.000	0.000
	PROFIT AFTER TAX		(409.681)	(934.703)	(640.629)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	449.730	394.516	375.081
	TOTAL EARNINGS		449.730	844.246	769.597
	Earnings Per Share (Rs.)		(2.16)	(4.92)	(3.37)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	(19.80)	(59.13)	(38.74)
Return on Investment (ROI) (PBT/Networth)		1.14	4.46	(2.84)
Debt Equity Ratio (Total Debt /Networth)		(2.29)	(4.03)	1.99
Current Ratio (Current Asset/Current Liability)		0.59	0.65	0.87

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	689.247	1189.247	1449.247
Reserves & Surplus	(463.966)	(1398.669)	(1808.350)
Net worth	225.281	(209.422)	(359.103)
long-term borrowings	300.000	166.666	33.333
Short term borrowings	147.973	677.503	787.913
Total borrowings	447.973	844.169	821.246
Debt/Equity ratio	1.989	(4.031)	(2.287)

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	No
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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE

The registered office of the company has been shifted from 14A and B, Hansalaya, 15, Barakhamba Road, New Delhi – 110001, India to present address w.e.f.18.07.2011

CORPORATE INFORMATION

The Company was incorporated on December 29, 2005. The Company is engaged Valeo in the business of providing design and simulation services to its group companies across the globe. With effect from April 1, 2010, Valeo Engine Electrical Systems India Private Limited ('VEESIL') was amalgamated into the Company which is engaged in the business of manufacturing, assembling, sub-assembling, designing, developing, fabrication, export sales, distribution of alternators and starter motors.

OPERATIONS FOR THE YEAR

Their company results comprises of Manufacturing of Starters / Altrnators, R & D Division, Shared Services, Thermal Operations. The loss for the year Rs.41.000 Millions which is -12% (Previous year -34%). Includes prior period items of Rs. 41.000 Millions. Excluding this exceptional items, the loss was reduced from 23% to 12% due to localization steps taken, optimum utilizing the capacity and shared services income for the full year.

The company is taking steps to recover the loss by localization of material, controlling overhead expenses, revising selling price to customers and developing new profitable business including exports, the company’s thermal operations have started their operational during the year.

.

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS

· Plant and Equipment

· Other plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· 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. 61.52
UK Pound	1	Rs. 97.39
Euro	1	Rs. 76.15

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	RAS
Report Prepared by :	KLS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		12

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.