MIRA INFORM REPORT

Report No. :	503688
Report Date :	13.04.2018

IDENTIFICATION DETAILS

Name :	HITACHI AUTOMOTIVE SYSTEMS (INDIA) PRIVATE LIMITED
Registered Office :	Plot No. 17, One Hub Chennai, Panchanthiruthi Village, Manamathy PO, Thiruporur Taluka, District Kancheepuram - 603105, Tamilnadu
Tel. No.:	91-44-67444000
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	26.04.2012
Com. Reg. No.:	18-096838
Capital Investment / Paid-up Capital :	INR 3622.500 Million
CIN No.: [Company Identification No.]	U29253TN2012FTC096838
IEC No.: [Import-Export Code No.]	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCH9517N
TIN No.:	33870928776
GSTN : [Goods & Service Tax Registration No.]	33AACCH9517N1Z9
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the Manufacturing and Trading of Ignition Coils and Automotive Components to be used in Automobiles. [Registered Activity]
No. of Employees :	Not Available

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Maximum Credit Limit :	USD 7633000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a step down subsidiary of “Hitachi Limited” Japan. It provides services and solutions like development, manufacture, marketing, sales and service of components related to transportation and automotive industry, industrial systems and machines, etc. It is well-established company with fine track record. Hitachi Limited is a Japanese multinational conglomerate company headquartered in Chiyoda, Tokyo, Japan. It is the parent of the Hitachi Group and forms part of the DKB Group of companies. Hitachi is a highly diversified company that operates eleven business segments: Information and Telecommunication Systems, Social Infrastructure, High Functional Materials and Components, Financial Services, Power Systems, Electronic Systems and Equipment, Automotive Systems, Railway and Urban Systems, Digital Media and Consumer Products, Construction Machinery and Other Components and Systems. Hitachi ranked at 71st placed amongst the list of Fortune Global 500 company list in the year, 2017. The ratings assigned to company derive strength from strong parentage support and experienced promoters with established track record, robust financial performance during FY-17 marked by strong capital structure along with debt free operations. The rating is constrained in view of company’s negative consolidated reserves resulting in the deterioration of the capital structure of the company over the past two years. Payments seems to be regular and as per commitment. In view of aforesaid, the company can be considered good for normal business dealings at usual trade 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 13.04.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DECLINED

MANAGAMENT NON-COOPERATIVE [91-44-67444000]

LOCATIONS

Registered Office/ Factory :	Plot No. 17, One Hub Chennai, Panchanthiruthi Village, Manamathy PO, Thiruporur Taluka, District Kancheepuram - 603105, Tamilnadu, India
Tel. No.:	91-44-67444000/33143000
Fax No.:	91-44-66915191
E-Mail :	hiroshi.nitta@hitachi-automotive.in venkataraman.s@hitachi-automotive.in jagadishram.c@hitachi-automotive.in
Website :	http://www.hitachi.co.in
Branch Office :	143, Dr. MGR Road, 4B, 6^th Floor, RMZ Millennia Business Park-2, Perungudi, Chennai-600096, Tamilnadu, India
Tele. No.:	91-44-66915120
Fax No.:	91-44-66915191

DIRECTORS

AS ON: 31.03.2017

Name :

Mr. Ajay Kaul

Designation :

Whole-time Director

Address :

Flat No 244, Sunehri Bagh Apartments, Sector 13, Rohini, New Delhi – 110085, India

Date of Birth/Age :

24.03.1970

Qualification :

Bachelor of Engineer

Date of Appointment :

05.04.2013

PAN No.:

AIRPK9305K

DIN No.:

06534968

Name :

Hiroyuki Kato

Designation :

Whole-time Director

Address :

501 Hoshikawa-Plaza-Mansion, 6-2 Kawabe-Cho Hodogaya-Ku, Kanagawa Prefecture Yokohama Na Japan

Date of Birth/Age :

11.03.1962

Qualification :

Bachelor Degree

Date of Appointment :

05.04.2013

DIN No.:

06546471

Name :

Bradley Jay Maggart

Designation :

Director

Address :

Room 7D2, 61 Royce Private Residences Building, B. Soi Sukhumvit 31 (Sawaddee) Sukhumvit Road, Klongtei Nue Wattana, Bangkok – 10110, Thailand

Date of Appointment :

05.04.2013

DIN No.:

06546559

Name :

Mr. Kojin Nakakita

Designation :

Director

Address :

Hotel Le Meridien, Windsor Place Janpath, New Delhi-110001, India

Date of Appointment :

21.03.2017

DIN No.:

07107266

Other Directorship :

CIN/FCRN	Company Name	Begin Date
U52190DL1997PTC085419	HITACHI INDIA PRIVATE LIMITED	31/05/2017

Name :

Mr. Kazunari Kurokawa

Designation :

Managing Director

Address :

3316-14 Honno Mobara-Shi Chiba 2994114, Japan

Date of Birth/Age :

15.08.1961

Qualification :

Bachelor of Electronic Engineering

Date of Appointment :

19.01.2017

DIN No.:

07686566

Name :

Mr. Hiroshi Omiyama

Designation :

Director

Address :

186 Moo 7 Gateway City Inds. Estate T.Huasamrong A.Plangyao Chachoengsao Thailand 24190

Date of Appointment :

27.06.2017

DIN No.:

07813115

KEY EXECUTIVES

Name :	Mr. Jagadish Chandrasekaran Ram
Designation :	Company Secretary
Address :	2A Bhavani Street, Bharath Nagar, Adambakkam, Chennai-600088, Tamilnadu, India
Date of Appointment :	01.04.2018
PAN No.:	AHRPJ5072H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 31.03.2017

Names of Shareholders	No. of Shares
Hitachi Automotive Systems Limited, Japan	247500
Hitachi Automotive Systems Asia Limited, Thailand	2500
Hitachi Asia Limited, Singapore	362000000
Total	362250000

AS ON: 27.09.2017

Equity Share Breakup	Percentage of Holding
Category
Promoters – Body Corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the Manufacturing and Trading of Ignition Coils and Automotive Components to be used in Automobiles. [Registered Activity]

Products :

ITC Code No.	Product Descriptions
85113020	IG Coil
84099199	VTC
90261090	Air Mass Flow Meter

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Divulged

Bankers :

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

Auditors :
Name :	S. R. Batliboi and Associates LLP Chartered Accountants
Address :	6th and 7th Floor, A, Block, Tidal Park, (Module 601, 701 and 702) No. 4, Rajiv Gandhi Salai, Taramani, Chennai – 600113, Tamilnadu, India
PAN No.:	ACHFS9118A
Memberships :	Not Available
Collaborators :	Not Available
Holding company:	Hitachi Asia Limited, Singapore
Ultimate holding company :	Hitachi Limited, Japan
Fellow Subsidiary:	Hitachi India Private Limited
Subsidiary of ultimate holding companies :	· Hitachi Automotive Systems Limited, Japan · Hitachi Asia Ltd, Singapore · Hitachi Automotive Systems Hanshin, Sanda · Hitachi Automotive Systems Hanshin, Yokohama · Hitachi High-Technologies India Private Limited, Gurgaon · Hitachi Plant & Technologies India Private Limited · Hitachi Systems Micro Clinic, Chennai · Hitachi, Ltd. Financial Solutions, Japan · Hitachi, Ltd. IT Services Division, Tokyo · Hitachi Automotive System Limited, Kanagawa · Hitachi Document Solutions Co., Limited · Hitachi Hi-Technologies Corporation · Hitachi International Treasury Limited, Singapore · Hitachi Automotive Systems Czech, S.R.O. · Hitachi Automotive Systems Europe GMBH · Hitachi Automotive Systems Americas, INC. - FA · Hitachi Automotive Systems Asia Limited, Thailand · Hitachi Automotive Systems Product (Guanzhou) Ltd, China · Hitachi Automotive Systems Steering Limited, Miyako · Johnson Controls-Hitachi Air Conditioning India Limited

CAPITAL STRUCTURE

AS ON: 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
650000000	Equity Shares	INR 10/- each	INR 6500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
362250000	Equity Shares	INR 10/- each	INR 3622.500 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3622.500	3622.500	3622.500
(b) Reserves and Surplus	(950.672)	(415.445)	(57.986)
(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)	2671.828	3207.055	3564.514
(3) Non-Current Liabilities
(a) long-term borrowings	1350.000	600.000	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	4.922	3.108	1.822
Total Non-current Liabilities (3)	1354.922	603.108	1.822
(4) Current Liabilities
(a) Short-term borrowings	350.000	50.000	0.000
(b) Trade payables	199.773	167.042	24.479
(c) Other current liabilities	84.401	329.823	591.999
(d) Short-term provisions	9.968	6.302	16.322
Total Current Liabilities (4)	644.142	553.167	632.800
TOTAL	4670.892	4363.330	4199.136
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3449.841	3199.355	795.104
(ii) Intangible Assets	289.967	33.587	2.329
(iii) Tangible assets capital work-in-progress	41.883	460.282	2254.425
(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 loans and advances	218.478	216.035	269.365
(e) Other Non-current assets	8.400	8.400	0.000
Total Non-Current Assets	4008.569	3917.659	3321.223
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	183.497	82.645	2.434
(c) Trade receivables	149.876	59.424	2.317
(d) Cash and bank balances	77.889	118.512	811.033
(e) Short-term loans and advances	250.951	184.982	58.388
(f) Other current assets	0.110	0.108	3.741
Total Current Assets	662.323	445.671	877.913
TOTAL	4670.892	4363.330	4199.136

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Total Revenue from operations	543.413	112.820	4.632
	Other Income	8.178	33.273	86.134
	TOTAL	551.591	146.093	90.766
Less	EXPENSES
	Cost of Materials Consumed	275.217	96.426	3.330
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(8.218)	(24.650)	0.000
	Employee benefit expense	256.105	136.856	21.590
	Other expenses	308.226	181.730	21.419
	TOTAL	831.330	390.362	46.339
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(279.739)	(244.269)	44.427
Less	FINANCIAL EXPENSES	86.102	21.606	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(365.841)	(265.875)	44.427
Less/ Add	DEPRECIATION/ AMORTISATION	169.385	91.585	15.463
	PROFIT/ (LOSS) BEFORE TAX	(535.226)	(357.460)	28.964
Less	TAX	0.000	0.000	20.824
	PROFIT/ (LOSS) AFTER TAX	(535.226)	(357.460)	8.140
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	6.331	19.057	0.000
	TOTAL EARNINGS	6.331	19.057	0.000
	Earnings / (Loss) Per Share (INR)	(1.48)	(0.99)	0.03

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	NA	NA	NA
Net cash flows from (used in) operations	(540.138)	(348.825)	(187.251)
Net cash flows from (used in) operating activities	(541.996)	(363.861)	(193.042)

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	100.67	192.25	182.58
Account Receivables Turnover (Income / Sundry Debtors)	3.63	1.90	2.00
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	264.94	632.30	2683.13
Inventory Turnover (Operating Income / Inventories)	(1.52)	(2.96)	18.25
Asset Turnover (Operating Income / Net Fixed Assets)	(0.07)	(0.07)	0.01

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.43	0.26	0.15
Debt Equity Ratio (Total Liability / Networth)	0.64	0.20	0.00
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.24	0.17	0.18
Fixed Assets to Networth (Net Fixed Assets / Networth)	1.42	1.15	0.86
Interest Coverage Ratio (PBIT / Financial Charges)	(3.25)	(11.31)	0.00

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	(98.49)	(316.84)	175.73
Return on Total Assets ((PAT / Total Assets) * 100)	%	(11.46)	(8.19)	0.19
Return on Investment (ROI) ((PAT / Networth) * 100)	%	(20.03)	(11.15)	0.23

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.03	0.81	1.39
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.74	0.66	1.38
G-Score Ratio Financial (Networth / Total Assets)	0.57	0.74	0.85
G-Score Ratio Debt (Debts / Equity Capital)	0.47	0.18	0.00
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.03	0.81	1.39

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

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	3622.500	3622.500	3622.500
Reserves & Surplus	(57.986)	(415.445)	(950.672)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	3564.514	3207.055	2671.828
long-term borrowings	0.000	600.000	1350.000
Short term borrowings	0.000	50.000	350.000
Total borrowings	0.000	650.000	1700.000
Debt/Equity ratio	0.000	0.203	0.636

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2016	31.03.2017	31.03.2018
	INR In Million	INR In Million	INR In Million
Sales	4.632	112.820	543.413
		2,335.665	381.664

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	4.632	112.820	543.413
Profit/ (Loss)	8.140	(357.460)	(535.226)
	175.73%	(316.84%)	(98.49%)

LOCAL AGENCY FURTHER INFORMATION

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	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
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	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	No
21	Banking facility details	No
22	Conduct of the banking account	--
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%	--
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	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES: NO CHARGES EXISTS FOR COMPANY

UNSECURED LOANS

PARTICULARS	31.03.2017 (INR In Million)	31.03.2016 (INR In Million)
LONG-TERM BORROWINGS
Loans and advances from related parties	1350.000	600.000
SHORT TERM BORROWINGS
Term loans from banks	350.000	50.000
Total	1700.000	650.000

CORPORATE INFORMATION

Hitachi Automotive System (India) Private Limited (the Company) is a private limited company domiciled in India. The Company was incorporated on April 26, 2012 under the provisions of the Companies Act, 1956. The Company has currently start-up manufacturing facility in the suburbs of Chennai, Tamilnadu and has commenced production in the month of October 2015.The Company is engaged in the manufacturing of ignition coils and automotive components to be used in automobiles.

THE STATE OF COMPANYS AFFAIRS:

The Sales Revenue net of Excise was INR 543 Million as against INR 112 Million in the previous year which was only for a period of 6 months. The Profit Before Tax was negative at INR 535 Million against Loss of INR 357 Million in the previous year

FUTURE OUTLOOK:

The sale of the company products is expected to increase in the current year 2017-18 both to existing and new customers. The company has also procured new orders from both existing and new customers which are under various stages of development.

FIXED ASSETS:

• Land
• Buildings
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer equipment’s
• Plant and equipment

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	INR
US Dollar	1	INR 65.35
UK Pound	1	INR 92.70
Euro	1	INR 80.80

INFORMATION DETAILS

Information Gathered by :	SUP
Analysis Done by :	NSG
Report Prepared by :	RUP

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.