MIRA INFORM REPORT

Report No. :	307112
Report Date :	10.02.2015

IDENTIFICATION DETAILS

Name :	SOMIC ZF COMPONENTS LIMITED (w.e.f. 06.08.2012)
Formerly Known As :	SONA SOMIC LEMFORDER COMPONENTS LIMITED (w.e.f. 18.03.1999) SONA SOMIC COMPONENTS LIMITED
Registered Office :	B-59 (LGF), Sarvodaya Enclave, New Delhi - 110017
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	20.08.1993
Com. Reg. No.:	55-054930
Capital Investment / Paid-up Capital :	Rs.179.879 Millions
CIN No.: [Company Identification No.]	U74899DL1993PLC054930
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACS4766Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Ball Joints and Related Parts for Four Wheelers.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 2140000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established public limited liability company having satisfactory track record. The company has reported good profitability and net worth. There has been a considerable decrease in long-term loans. Trade relations are fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered for business dealings with some cautions.

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term loan: “A-”
Rating Explanation	Adequate degree of safety and low credit risk.
Date	June, 2014

Rating Agency Name	ICRA
Rating	Short term loan: “A2+”
Rating Explanation	Strong degree of safety and low credit risk.
Date	June, 2014

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.

LOCATIONS

Registered Office :	B-59 (LGF), Sarvodaya Enclave, New Delhi – 110017, India
Tel. No. :	91-124-4746300
Fax No. :	91-124-4104637
E-Mail :	praveen.sharma.somic@zf.com
Website :	www.somiczfindia.com
Factory 1:	Village Begumpur, Khatola, Post Box No 38, Gurgaon - 122001, Haryana, India
Tel. No.:	91-124-4746300
E-Mail:	Info.somic@zf.com
Factory 2:	Plot No. 35, Sector 11, Near Delphi TVS, IID SIDCUL, TATA Vendor Park, Pant Nagar, Udham Singh Nagar – 263153, Uttarakhand, India
Tel. No.:	91-5944-211038
E-Mail:	Info.somic@zf.com
Factory 3:	No. 35, Thiruvan Karunai Road, Kunnam Village, Sriperumbudur Taluk, Kancheepuram District - 631604, Tamilnadu, India
Tel. No.:	91-44-37173614
E-Mail:	Info.somic@zf.com

DIRECTORS

As on 25.09.2014

Name :

Mr. Thandassery Hariharan Gopalakrishnan

Designation :

Managing director

Address :

Flat No. 904, Tower No.1, Orchid Petals, Sector – 49, Sohan Raod, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

28.05.1966

Qualification:

B. Tech

Date of Appointment :

25.04.2014

PAN No.:

AASPG1477H

DIN No.:

05285668

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	U74899DL1993PLC054930	SOMIC ZF COMPONENTS LIMITED	Managing director	25-04-2014	25-04-2012	Active	NO
2	U65993DL2001PTC110205	ZF COMPONENTS INVESTMENT PRIVATE LIMITED	Director	23-08-2013	14-03-2013	Active	NO

Name :

Mr. Masahiro Yamada

Designation :

Whole-time director

Address :

2068-50 Ohara Iwata-Shi, Shizuoka – Kan 4371211, Japan

Qualification:

Graduate

Date of Birth/Age :

15.04.1956

Qualification:

Graduate

Date of Appointment :

01.04.2013

DIN No.:

06376206

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	U74899DL1993PLC054930	SOMIC ZF COMPONENTS LIMITED	Whole-time director	01-04-2013	30-08-2012	Active	NO

Name :

Mr. Jieming Zhu

Designation :

Nominee director

Address :

38 Xiang Hua Oiao Road, Apartment 4-12-01, Shanghai – 200052, China

Date of Birth/Age :

19.06.1961

Qualification:

Graduate

Date of Appointment :

15.03.2005

DIN No.:

01059052

Name :

Mr. Urs Timo Rienhoff

Designation :

Additional director

Address :

Spinnereiweg 14A, 49082, Osnabrueck, Germany

Date of Birth/Age :

13.06.1970

Date of Appointment :

25.09.2014

DIN No.:

06752985

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	U74899DL1993PLC054930	SOMIC ZF COMPONENTS LIMITED	Director	25-09-2014	01-01-2014	Active	NO

Name :

Mr. Keizo Matsumoto

Designation :

Additional director

Address :

6588-3 Ohkubo-Cho, Nishi-Ku, Hamamatsu-Shi, Shizuoka ken - 4328006

Date of Birth/Age :

21.02.1961

Date of Appointment :

25.09.2014

DIN No.:

06772525

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	U74899DL1993PLC054930	SOMIC ZF COMPONENTS LIMITED	Director	25-09-2014	01-01-2014	Active	NO

Name :

Mr. Akihiro Ishikawa

Designation :

Additional director

Address :

334-2 Sunayama-Cho, Naka-Ku, Hamamatsu-Shi Shizuoka Ken – 4308327, Japan

Date of Birth/Age :

26.05.1965

Date of Appointment :

25.09.2014

DIN No.:

06772534

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	U74899DL1993PLC054930	SOMIC ZF COMPONENTS LIMITED	Director	25-09-2014	01-01-2014	Active	NO

KEY EXECUTIVES

Name :	Mr. Praveen Sharma
Designation :	Secretary
Address :	20-B/60-B, Tilak Nagar, New Delhi – 110018, India
Date of Birth/Age :	10.09.1972
Date of Appointment :	30.07.2013
PAN No.:	ABLPS6278G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2014

Names of Shareholders	No. of Shares
Piyush Munot	2
Pranil Doijad	1
Samir Takochi	4
ZF Components Investment Private Limited, India	4293029
Somic Engineering Inc. Japan	4287215
ZF India Private Limited, India	4700939
Somic Ishikawa Inc, japan	4706752
Total	17987942

As on 25.09.2014

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	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Ball Joints and Related Parts for Four Wheelers.

Products :

Item Code No. (ITC Code)	Product Description
84836090	Ball Joints

Brand Names :

--

Agencies Held :

--

Exports :

--

Imports :

--

Terms :

--

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

· Maruti Suzuki

· Honda

· Toyota

· Hyundai

· TATA

· Mahindra

· Chevrolet

· Ford

· Ashok Leyland

· Fiat

No. of Employees :

Not Available

Bankers :

· Kotak Mahindra Bank Limited, 15-16, UGF, Ambadeep Building, 14, K. G. Marg, New Delhi - 110001, India

· State Bank of Hyderabad, Narsinghpur Branch, Carrier Aircon Complex, Khedki Daula, Gurgaon - 122001, Haryana, India

· Kotak Mahindra Bank Limited, 7^th Floor, Ambadeep Building, Kasturba Gandhi Marg, New Delhi - 110001, India

· Standard Chartered Bank, Sansad Marg, New Delhi - 110001, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks (First pari passu charge on land, building and all existintg movable fixed assets of the Company)	1.560	3.540
	0
SHORT TERM BORROWINGS	0
Working capital loans from banks (Secured by way of hypothecation of inventories, book debts and second pari passu charge on movable and immovable fixed assets of the company and carries interest @ 13% at present)	206.220	24.098
Total	207.780	27.638

Banking Relations :	--
Auditors :
Name :	SRBC and Company LLP Chartered Accountants
Address :	Golf View Corporate Tower-B, Sector-42, Sector Road, Gurgaon – 122002, Haryana, India
Income-tax PAN of auditor or auditor's firm :	ABSFS4151K
Memberships :	--
Collaborators :	--
Associates :	· ZF Components Investment Private Limited CIN No.: U65993DL2001PTC110205 · ZF India Private Limited CIN No.: U74999PN2007FTC130569 · Somic Engineeing Inc · Somic Ishikawa Inc. · ZF Friedrichshafen AG
Enterprises owned or significantly influenced by key managerial personnel or their relatives :	· Sona Koyo Steering systems Limited (upto April 24, 2012) · Sona Okegawa Precision Forging Limited (upto April 24, 2012) · Sona Management Services Limited (upto April 24, 2012) · Sona Fujikiko Automotive Limited (upto April 24, 2012) · Mandira Marketing Limited (upto April 24, 2012)
Fellow Subsidiaries :	· ZF Pwk Mecacentre S.A.S · ZF Chassis Components LLC · ZF Levice, S.R.O. Divizia F · ZF Lemforder TVA Spain · ZF China Investment Co. Limited · ZF Lemforder Shanghai · Chassistech Co. Limited · Somboon Somic Manufacturing Co. Limited

CAPITAL STRUCTURE

As on 25.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
22,000,000	Equity Shares	Rs.10/- each	Rs. 220.000 Millions
1,000,000	Preference Shares	Rs.100/- each	Rs. 100.000 Millions
	Total		Rs. 320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17,987,942	Equity Shares	Rs.10/- each	Rs. 179.879 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	179.879	179.879	155.489
(b) Reserves & Surplus	568.809	527.880	422.226
(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)	748.688	707.759	577.715
(3) Non-Current Liabilities
(a) long-term borrowings	89.806	147.940	230.343
(b) Deferred tax liabilities (Net)	57.202	57.337	43.220
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	12.386	13.552	8.372
Total Non-current Liabilities (3)	159.394	218.829	281.935
(4) Current Liabilities
(a) Short term borrowings	206.219	190.718	192.735
(b) Trade payables	432.846	406.443	437.434
(c) Other current liabilities	106.174	131.222	212.110
(d) Short-term provisions	1.324	1.123	1.212
Total Current Liabilities (4)	746.563	729.506	843.491
TOTAL	1654.645	1656.094	1703.141
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	902.554	850.313	813.122
(ii) Intangible Assets	28.563	30.564	23.046
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	9.912	25.253	22.107
(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	35.277	52.064	30.657
(e) Other Non-current assets	2.090	6.232	9.558
Total Non-Current Assets	978.396	964.426	898.490
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	228.142	205.163	213.977
(c) Trade receivables	373.187	383.687	392.319
(d) Cash and cash equivalents	15.684	26.094	97.678
(e) Short-term loans and advances	57.317	57.014	66.923
(f) Other current assets	1.919	19.710	33.754
Total Current Assets	676.249	691.668	804.651
TOTAL	1654.645	1656.094	1703.141

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2870.138	3005.786	2380.205
		Other Income	13.013	23.910	8.800
		TOTAL (A)	2883.151	3029.696	2389.005
Less	EXPENSES
		Cost of Materials Consumed	2033.969	2169.890	1741.559
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(7.575)	17.090	(38.272)
		Employees benefits expense	312.274	307.137	233.460
		Other expenses	342.899	349.134	329.581
		TOTAL (B)	2681.567	2843.251	2266.328
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		201.584	186.445	122.677
Less	FINANCIAL EXPENSES (D)		28.342	35.925	32.696
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		173.242	150.520	89.981
Less/ Add	DEPRECIATION/ AMORTISATION (F)		112.962	99.280	81.293
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		60.280	51.240	8.688
Less	TAX (H)		19.351	21.197	39.156
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		40.929	30.043	(30.468)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		130.147	100.104	130.572
	BALANCE CARRIED TO THE B/S		171.076	130.147	100.104
	EARNINGS IN FOREIGN CURRENCY		0.020	4.515	7.983
	IMPORTS
		Raw Materials	337.956	361.653	241.660
		Components and Spare Parts	2.900	0.957	0.628
		Capital Goods	0.653	7.723	0.953
	TOTAL IMPORTS		341.509	370.333	243.241
	Earnings / (Loss) Per Share (Rs.)		2.28	1.83	(1.96)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	1.43	1.00	(1.28)
Operating Profit Margin (PBDIT/Sales)	(%)	7.02	6.20	5.15
Return on Total Assets (PBT/Total Assets}	(%)	3.67	3.14	0.52
Return on Investment (ROI) (PBT/Networth)		0.08	0.07	0.02
Debt Equity Ratio (Total Debt/Networth)		0.40	0.48	0.73
Current Ratio (Current Asset/Current Liability)		0.91	0.95	0.95

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	155.489	179.879	179.879
Reserves & Surplus	422.226	527.880	568.809
Net worth	577.715	707.759	748.688
long-term borrowings	230.343	147.940	89.806
Short term borrowings	192.735	190.718	206.219
Total borrowings	423.078	338.658	296.025
Debt/Equity ratio	0.732	0.478	0.395

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2380.205	3005.786	2870.138
		26.283	(4.513)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2380.205	3005.786	2870.138
Profit	(30.468)	30.043	40.929
	(1.28%)	1.00%	1.43%

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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Foreign currency term loans from banks	88.245	144.400
SHORT TERM BORROWINGS
Working capital loans from banks	0.000	166.620
Total	88.245	311.020

CORPORATE INFORMATION

The Company is a limited company and incorporated under the provisions of the Companies Act, 1956. The company is engaged in the business of manufacturing of ball joints and related parts for four wheelers. The manufacturing plants of the Company are located at Begumpur Khatola, Gurgaon in the state of Haryana, Sriperumbudur in the state of Tamil Nadu and at Rudrapur in the state of Uttarkhand, India.

PERFORMANCE REPORT (2013-2014)

The Company has registered sales of Rs. 2870.140 million during the financial year ended 31^st March, 2014 as against the sales of Rs. 3005.780 million during the previous financial year thus registering a negative growth of 4.5%. However, the Profit after tax is Rs. 40.930 against profit of Rs. 30.040 million in the previous financial year.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Machinery

· Furniture and Fixture

· Office Equipments

· Computers

· Vehicles

Intangible Assets

· Computer Software

· New Product Development

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.62.14
UK Pound	1	Rs.94.79
Euro	1	Rs.70.38

INFORMATION DETAILS

Analysis Done by :	SUC
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		51

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.