MIRA INFORM REPORT

Report No. :	325853
Report Date :	03.06.2015

IDENTIFICATION DETAILS

Name :	HITACHI HOME AND LIFE SOLUTIONS (INDIA) LIMITED
Registered Office :	9th Floor, Abhijeet, Mithakhali Six Roads, Ahmedabad – 380006, Gujarat
Tel. No.:	91-79-26402024/ 30414800/ 26400673
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	07.12.1984
Com. Reg. No.:	04-007470
Capital Investment / Paid-up Capital :	Rs. 271.909 Millions
CIN No.: [Company Identification No.]	L29300GJ1984PLC007470
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing, Selling and Trading of ‘Hitachi’ brand of Air Conditioners, Refrigerators, Chillers and VRF (Variable Refrigerant Flow) Systems.
No. of Employees :	1160 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (65)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Financial position of company is sound. Fundamentals are strong and healthy. The rating takes into consideration company brand image and its established market position in the premium segment of room air conditioners (ACs). Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitment. 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.

ECGC Country Risk Classification List – March 31, 2015

Rating Agency Name	CRISIL
Rating	Long-term rating = AA-
Rating Explanation	High degree of safety and very low credit risk.
Date	March 27, 2015

Rating Agency Name	CRISIL
Rating	Short-term rating = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	March 27, 2015

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 DECLINED BY

Name :	Mr. D Thomas
Designation :	HR Manager
Contact No.:	91-2764-233586
Date :	03.06.2015

LOCATIONS

Registered Office :	9th Floor, Abhijeet, Mithakhali Six Roads, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26402024/ 30414800/ 26400673
Fax No.:	91-79-26400672
E-Mail :	sales@hitachi-hli.com customercare@hitachi-hli.com hitachi@hitachi-hli.com parag.dave@hitachi-hli.com
Website :	http://www.hitachi-hli.com
Head Office/ Factory 1 :	Hitachi Complex, Karan Nagar Kadi, District Mehsana – 382727, Gujarat, India
Tel. No.:	91-2764-277571
Fax No.:	91-2764-233425/ 277930
Factory 2 :	Canal Road, Bari Brahmna - 181133, Jammu, Jammu and Kashmir, India
Corporate Office :	A-15, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi, India
Tel. No.:	91-11-26991361/ 62/ 63
Branch Office :	A - 407, Boomrang, Chandivli Farm Road, Andheri (East), Mumbai – 400072, Maharashtra, India
Branch Office :	Also Located at: North · New Delhi · Gurgaon · Ghaziabad · Lucknow · Chandigarh · Ludhiana · Jaipur West · Mumbai · Pune · Nagpur · Ahmedabad · Surat · Indore South · Chennai · Coimbatore · Hyderabad · Bangalore · Cochin East · Kolkata · Bhubaneshwar · Patna

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Shinichi Iizuka
Designation :	Chairman
Name :	Mr. Shoji Tsubokuta
Designation :	Managing Director
Name :	Mr. Amit Doshi
Designation :	Executive Director
Name :	Mr. Anil Shah
Designation :	CFO and Executive Director
Name :	Mr. Vinay Chauhan
Designation :	Executive Director
Name :	Mr. Ashok Balwani
Designation :	Director
Name :	Dr. Devender Nath
Designation :	Director
Name :	Mr. L G Ramakrishnan
Designation :	Director
Name :	Mr. Mukesh Patel
Designation :	Director
Name :	Mr. R S Mani
Designation :	Director
Name :	Mr. Ravindra Jain
Designation :	Director
Name :	Mr. Vinesh Sadekar
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Parag Dave
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2015

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	500000	1.84
Sub Total	500000	1.84
(2) Foreign
Bodies Corporate	19689894	72.41
Sub Total	19689894	72.41
Total shareholding of Promoter and Promoter Group (A)	20189894	74.25
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1663903	6.12
Financial Institutions / Banks	10673	0.04
Insurance Companies	800	0.00
Foreign Institutional Investors	392262	1.44
Sub Total	2067638	7.60
(2) Non-Institutions
Bodies Corporate	1479844	5.44
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2552420	9.39
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	790423	2.91
Any Others (Specify)	110665	0.41
Any Other	110665	0.41
Sub Total	4933352	18.14
Total Public shareholding (B)	7000990	25.75
Total (A)+(B)	27190884	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	27190884	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing, Selling and Trading of ‘Hitachi’ brand of Air Conditioners, Refrigerators, Chillers and VRF (Variable Refrigerant Flow) Systems.
Brand Name :	‘Hitachi’
Agencies Held :	--
Exports :
Products :	Not Divulged
Countries :	Not Divulged
Imports :
Products :	Not Divulged
Countries :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

1160 (Approximately)

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· State Bank of India

· ICICI Bank Limited

· Standard Chartered Bank

Facilities :

SECURED LOANS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
SHORT TERM BORROWINGS
Loans repayable on demand from banks: - Working capital loans *	NA	347.312
Others: Buyers’ credit		0.000
Total	NA	347.312
NOTE LONG-TERM BORROWINGS * ECB of USD 100 lacs, taken from a Bank, carries interest @ 6 month LIBOR plus 125 basis points which is repayable in two equal installments due in year 2014-15 and 2016-17. The principal and interest payment under above loan has been fully hedged under Indian Rupees and interest liability has been swapped against fixed interest @ 7.45% per annum. SHORT TERM BORROWINGS * Working capital loans (Rate of Interest ranging from 10.15% to 13.25% per annum) and Buyers’ credit (Rate of Interest ranging from LIBOR plus 70 basis points to LIBOR plus 120 basis points per annum) facilities from banks are secured by hypothecation of inventories, book debts, movable fixed assets and by equitable mortgage of certain land and buildings of the Company. ** Working capital loans from banks which are unsecured, carries interest rate from 11% to 14% per annum.

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and Associates LLP Chartered Accountants
Address :	Ahmedabad, Gujarat, India
Ultimate Holding Company :	Hitachi Limited, Japan
Holding Company :	Hitachi Appliances Inc., Japan
Fellow Subsidiaries :	· Hitachi Air Conditioning Products (M) Sdn. Bhd. · Hitachi Asia Limited – Singapore · Hitachi Household Appliances (Wuhu) Company Limited · Hitachi Procurement Service Company Limited · Hitachi Metglass (India) Private Limited · Shanghai Hitachi Electrical Appliances Company Limited · Hitachi Consumer Products (Thailand) Limited · Hitachi Koki India Limited · Hitachi Air Conditioning and Refrigerating Products (Guangzhou) Company Limited · Hitachi India Private Limited · Hitachi Lift India Private Limited · Hitachi Transport System India Private Limited · Shizuoka Hitachi Company Limited · Hitachi Data Systems · Hitachi Hi-rel Power Electronics Private Limited · Taiwan Hitachi Company Limited · Hitachi Cable Asia Pacific (HCAP) Pte Limited · Hitachi High Technologies Hong Kong Limited · Luvata Heating Cooling Technologies (Thailand) Limited · Flyjac Logistics Private Limited · Tata Hitachi Construction Machinery Company Limited · Hitachi Plant Technologies India Private Limited · Hitachi Tochigi Electronics (Thailand) Company Limited · Hitachi Metals Singapore Pte Limited · Hitachi Solution India Private Limited · Highly Electrical Appliances India Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Shares	Rs. 10/- each	Rs. 300.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
27,190,884	Equity Shares	Rs. 10/- each	Rs. 271.909 Million

47281 (Previous year 39401) Equity shares of Rs. 10/- each have been kept in abeyance pending final allotment of Rights issue (2003-04) and Rights issue (2013).

(a) Reconciliation of the Equity shares outstanding at the beginning and at the end of the reporting period

Equity Shares	March 31, 2014
	Nos.	Rs. In Million
At the beginning of the period	22,960,008	229.600
Add : Issued during the period	4,230,876	42.309
Outstanding at the end of the period	27,190,884	271.909

(b) Terms / rights attached to Equity shares

The Company has only one class of Equity shares having a face value of Rs.10/- per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend recommended by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2014, the amount per share recognised as dividend distributions to Equity shareholders is Rs. 1.50 (Previous year: Rs.1.50).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(c) Shares held by Holding Company and subsidiaries of Ultimate holding Company

Out of Equity shares issued by the Company, Equity shares held by Holding Company and subsidiary of Ultimate holding Company are as below:

	March 31, 2014 Rs. In Million
Hitachi Appliances Inc., Japan - Holding Company 19,689,894 (Previous year: 15,550,000) Equity Shares of Rs.10/- each fully paid up	196.899
Hitachi India Private Limited - Subsidiary of Ultimate holding Company 500,000 (Previous year: 500,000) Equity Shares of Rs. 10/- each fully paid up	5.000

(d) Details of shareholders holding more than 5% shares in the Company

Equity shares of Rs.10 each fully paid (Nos.)	March 31, 2014
Hitachi Appliances Inc., Japan - Holding Company	19,689,894
% holding	72.41%

As per of the company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents legal ownerships of shares.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	271.909	271.909	229.600
(b) Reserves & Surplus	2856.898	2128.358	1587.879
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	546.684
Total Shareholders’ Funds (1) + (2)	3128.807	2400.267	2364.163
(3) Non-Current Liabilities
(a) long-term borrowings	276.000	276.000	552.000
(b) Deferred tax liabilities (Net)	14.854	0.000	0.453
(c) Other long term liabilities	0.520	0.064	0.096
(d) long-term provisions	325.324	276.716	137.533
Total Non-current Liabilities (3)	616.698	552.780	690.082
(4) Current Liabilities
(a) Short term borrowings	1119.481	697.312	838.900
(b) Trade payables	4987.580	3041.613	3462.654
(c) Other current liabilities	817.250	811.221	870.040
(d) Short-term provisions	113.312	100.490	86.234
Total Current Liabilities (4)	7037.623	4650.636	5257.828
TOTAL	10783.128	7603.683	8312.073
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2456.371	1724.256	1614.743
(ii) Intangible Assets	0.000	230.395	160.707
(iii) Capital work-in-progress	0.000	3.191	42.942
(iv) Intangible assets under development	0.000	18.478	65.789
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	5.780	0.000
(d) Long-term Loan and Advances	246.807	305.860	179.330
(e) Other Non-current assets	0.000	0.000	0.051
Total Non-Current Assets	2703.178	2287.960	2063.562
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	4903.115	2904.775	3056.429
(c) Trade receivables	2838.398	1883.799	1645.260
(d) Cash and cash equivalents	57.385	219.935	715.790
(e) Short-term loans and advances	270.981	292.783	281.669
(f) Other current assets	10.071	14.431	549.363
Total Current Assets	8079.950	5315.723	6248.511
TOTAL	10783.128	7603.683	8312.073

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Revenue from operations	4944.985	10997.259	9299.916
		Other Income	17.945	57.485	16.07
		TOTAL (A)	4962.930	11054.744	9315.986
Less	EXPENSES
		Cost of Materials Consumed	3033.028	5641.75	5076.532
		Purchases of Stock-in-Trade	871.151	1360.355	1294.905
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(938.374)	(32.644)	(332.614)
		Employees benefits expense	357.077	818.452	645.065
		Other expenses	1166.311	2733.698	2151.575
		TOTAL (B)	4489.193	10521.611	8835.463
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		473.737	533.133	480.523
Less	FINANCIAL EXPENSES (D)		37.470	119.498	72.073
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		436.267	413.635	408.450
Less/ Add	DEPRECIATION/ AMORTISATION (F)		111.774	300.382	201.842
	PROFIT BEFORE TAX (E-F) (G)		324.493	113.253	206.608
Less	TAX (H)		83.959	32.761	53.574
	PROFIT AFTER TAX (G-H) (I)		240.534	80.492	153.034
	EARNINGS IN FOREIGN CURRENCY
		Export of trading goods (on FOB basis)	NA	0.000	0.016
		Commission income		14.048	19.139
		Reimbursement of advertisement and other expenses		23.398	14.700
	TOTAL EARNINGS		NA	37.446	33.855
	IMPORTS
		Capital Goods		48.954	468.968
		Raw materials, components and spares parts		2856.941	2845.201
		Stock-in-trade		839.714	694.374
	TOTAL IMPORTS		NA	3745.609	4008.543
	Earnings Per Share (Rs.)		8.85	2.97	6.67

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
PAT / Total Income	(%)	4.86	0.73	1.65
Net Profit Margin (PBT/Sales)	(%)	9.58	4.85	5.17
Return on Total Assets (PBT/Total Assets}	(%)	3.01	1.49	2.52
Return on Investment (ROI) (PBT/Networth)		0.10	0.05	0.09
Debt Equity Ratio (Total Liability /Networth)		--	0.52	0.70
Current Ratio (Current Asset/Current Liability)		1.15	1.14	1.19

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	229.600	271.909	271.909
Reserves & Surplus	1587.879	2128.358	2856.898
Current maturities of long-term borrowings	268.189	276.000	NA
Net worth	2085.668	2676.267	3128.807
long-term borrowings	552.000	276.000	276.000
Short term borrowings	838.900	697.312	1119.481
Total borrowings	1390.900	973.312	1395.481
Debt/Equity ratio	0.765	0.406	0.446

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	9299.916	10997.259	4944.985
		18.251	(55.034)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	9299.916	10997.259	4944.985
Profit	153.034	80.492	240.534
	1.65%	0.73%	4.86%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT

Particulars	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
Current maturities of long-term borrowings	NA	276.000	268.189
Cash generated from operations	--	--	--

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	No
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	No
10	Date of Birth of Proprietor / Partners / Directors	No
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	No
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	No
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	No
33	Market information	No
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10410045	27/02/2013	2,348,900,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, PARAMSIDDHI COMPLEX, ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B70174693
2	10085622	15/03/2010 *	1,100,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, PARAM SIDDHI COMPLEX,, ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	A80626336
3	80041615	31/07/2012 *	2,348,900,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, PARAMSIDDHI COMPLEX, ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B56217409
4	80019453	27/05/1996	62,500,000.00	CORPORATIONBANK	INDUSTRIAL FINANCE BRANCH, ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
External commercial borrowing (ECB) from a Bank	NA	276.000
SHORT TERM BORROWINGS
Loans repayable on demand from banks: Working capital loans **		350.000
Total	NA	626.000

CONTINGENT LIABILITIES:

Particulars	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
Legal matters under dispute * Service tax		73.454
Sales tax		37.339
Customs duty	NA	0.000
Excise duty		1.916
Guarantees given by the bankers on behalf of the Company		17.830
Claims against the Company not acknowledged as debts		7.203
Total	NA	137.742
* The company is contesting the demands and the management believes that its position is likely to be upheld in the appellate process. It is not practicable to estimate the timing of cash outflows, if any in respect of legal matters, pending resolution of the proceedings with the appellate authorities.

FIXED ASSETS:

Tangible assets:

· Freehold Land

· Buildings

· Plant and Machinery

· Computers

· Furniture and fixture

· Office equipments

· Electrical installations

· Vehicles

Intangible assets:

· Trade mark

· Software capitalisation

· Technical 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 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.63.83
UK Pound	1	Rs. 97.10
Euro	1	Rs. 69.74

INFORMATION DETAILS

Information Gathered by :	KAM
Analysis Done by :	DIV
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		65

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.