Ingram Micro India Limited

INDIA-03-JUN-2013-LOT5.ZIP@INGRAM_MICRO_INDIA_LIMITED_-_201710_27-NOV-2012.DOC

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

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MIRA INFORM REPORT Report Date : 27.11.2012

IDENTIFICATION DETAILS

Name : INGRAM MICRO INDIA LIMITED (w.e.f. 13.05.2009) Formerly Known As : TECH PACIFIC (INDIA) LIMITED Registered Office : 5

th Floor, Block B, Godrej IT Park, 02 Godrej Business District, Pirojshanagar,

Vikhroli (West), Mumbai – 400079, Maharashtra Country : India Financials (as on) : 31.03.2011 Date of Incorporation : 05.03.1996 Com. Reg. No.: 11-136340 Capital Investment / Paid-up Capital :

Rs.184.928 Millions

CIN No.: [Company Identification No.]

U72900MH1996PLC136340

TAN No.: [Tax Deduction & Collection Account No.]

MUMT06887G

PAN No.: [Permanent Account No.]

AABCT1296R

Legal Form : A Closely Held Public Limited Liability Company. Line of Business : Distributor of Products like Computers, Peripherals, Supplies, Softwares etc. No. of Employees : 500 (Approximately)

RATING & COMMENTS

MIRA’s Rating : A (64)

RATING STATUS PROPOSED CREDIT LINE

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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

Maximum Credit Limit : USD 26000000 Status : Good Payment Behaviour : Regular Litigation : Clear Comments : Subject is a well established and a reputed company having fine track. Financial

position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES: Any query related to this report can be made on e-mail: [email protected] while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name Previous Rating (31.03.2012)

Current Rating (30.06.2012)

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




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India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration. Source : CIA

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office : 5

th Floor, Block B, Godrej IT Park, 02 Godrej Business District, Pirojshanagar,

Vikhroli (West), Mumbai – 400079, Maharashtra, India Tel. No.: 91-22-67960101/ 67960149/ 39894645/ 67960247 Fax No.: 91-22-67960102/ 67960103/ 39891000/ 30561100/ 39894645 E-Mail : [email protected]

[email protected] Website : http://www.imonline.co.in

Location : Owned

Southern Branches : Located at:

• Bangalore

• Chennai

• Cochin

• Coimbatore

• Hubli

• Hyderabad

• Madurai




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• Pudhucherry

• Trivandrum

• Vizag

Western Branches : Located at:

• Ahmedabad

• Baroda

• Bhopal

• Indore

• Surat

• Mumbai

• Nagpur

• Pune

• Raipur

• Goa

Northern Branches : Located at:

• Chandigarh

• Dehradun

• Delhi

• Jaipur

• Jammu

• Lucknow

• Ludhiana

• Parwanoo Eastern Branches : Located at:

• Bhubaneshwar

• Guwahati

• Kolkata

• Patna

• Ranchi

DIRECTORS

(AS ON 30.09.2011) Name : Mr. Jaishankar Vaidyanathan Krishnan Designation : Managing Director Address : Flat No.1201, Somerset Hiranandani Garden, Powai,

Mumbai – 400076, Maharashtra, India Date of Birth/Age : 20.07.1957 Qualification : MMM, BE (E and C) Experience : 34 Years Date of Appointment : 01.01.2009 DIN No.: 00101652




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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 U72900MH1996PLC136340

INGRAM MICRO INDIA LIMITED

Managing director

01/01/2009

27/10/2001 - Active NO

2 U72200MH1999PTC121716

GRAINGER INDUSTRIAL SUPPLY INDIA PRIVATE LIMITED

Director

18/11/2002

18/11/2002

14/09/2007 Active NO

3 U65923MH1981PLC024957

SURAJAMI INVESTMENT AND TRADING COMPANY LIMITED

Director

27/12/2002

27/12/2002 - Active NO

Name : Mr. Shailendra Narendra Gupta Designation : Director Address : No. 9, Nathan Road, #09-04, Regency Park, Singapore –

248 730 Date of Birth/Age : 17.09.1962 Date of Appointment : 01.09.2001 DIN No.: 00966943 Other Directorship

S.No. CIN/LLPIN





Date of cessation

Company/ LLP Status

Defaulting status

1 U72900MH1996PLC136340


Director

01/09/2001

01/09/2001 - Active NO

2 U72200MH1999PTC121716

GRAINGER INDUSTRIAL SUPPLY INDIA PRIVATE LIMITED

Director

19/09/2001

19/09/2001


3 U65923MH1981PLC024957

SURAJAMI INVESTMENT AND TRADING COMPANY LIMITED

Director

30/12/2003

30/12/2003 - Active NO

Name : Mr. Stephen John Paine




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Designation : Director Address : Le Grove service apartments M – 206, 32 Orange Grove

Road, Singapore – 258 354 Date of Birth/Age : 17.01.1958 Date of Appointment : 05.12.2006 DIN No.: 01025188 Name : Mr. Wai Kong NG Designation : Director Address : BLK 4, Block Resvervoir View #0 310, Singapore – 479233 Date of Birth/Age : 24.10.1959 Date of Appointment : 09.07.2010 DIN No.: 03130301 Name : Mr. Prabhakar Venkatakrishnan Iyer Designation : Additional Director Address : Flat 201, A Wing, Glengate, Hiranandani Gardens, Powai,

Mumbai – 400076, Maharashtra, India Date of Birth/Age : 09.07.1964 Date of Appointment : 01.12.2011 DIN No.: 00116774 Other Directorship

S.No. CIN/LLPIN





Date of cessation

Company/ LLP Status

Defaulting status

1 U70101MH1994PTC080650

SANDAKAN PROPERTIES PRIVATE LIMITED Director

01/04/2002

01/04/2002 -

Strike off NO

2 U92100MH2004PTC146706

SONY MUSIC ENTERTAINMENT INDIA PRIVATE LIMITED

Whole-time director

30/09/2005

30/09/2005


3 U72900MH1996PLC136340


Whole-time director

01/12/2011

01/12/2011 - Active NO

Name : Mr. S. P. Achwal Designation : Director – Product Management Qualification : BE(Electr) Experience : 22 years Date of Appointment : 04.01.1990 Name : Mr. Bimal Das Designation : Director – Product Management Qualification : MBA, B. Sc.




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Experience : 24 Years Date of Appointment : 09.12.1996

KEY EXECUTIVES

Name : Mr. Sunil Gajanan Joglekar Designation : Company Secretary Address : F 105, Sumer Castle, LBS Road, Thane West, Mumbai – 400601, Maharashtra,

India Date of Birth/Age : 18.12.1964 Date of Appointment : 13.04.2009 PAN No.: ACNPJ2440C Name : Mr. Prabhakar Iyer Designation : Chief Financial Officer Qualification : B. Com, FCA,LLB (Gen) Experience : 23 years Date of Appointment : 02.02.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders

No. of Shares

Shailendra Gupta 1

Jaishankar Vaidyanathan Krishnan 2

Bimal Das 1

Sanjay Achawal 1

Mitradutta Mophapatra 1

Prabhakar V. Iyer 1

Ingram Micro Asia Limited, Singapore 18492710

Ingram Micro Asia Holdings Inc., USA 100

Total 18492817

(AS ON 30.09.2011) Equity Shares Break – up

Category Percentage

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

100.00

Total 100.00

BUSINESS DETAILS




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Line of Business : Distributor of Products like Computers, Peripherals, Supplies, Softwares etc. Products : Products Description Item Code No.

Computer Systems 84714101.1

Computer Peripherals 847160.05/60.12/60.198/847170.00

Consumables 847330.50/ 847330.99

GENERAL INFORMATION

No. of Employees : 500 (Approximately) Bankers : • Central Bank of India, Corporate Finance Branch, 1

st Floor, M S Road, Fort,

Mumbai – 400023, Maharashtra, India

• Bank of America

• Royal Bank of Scotland

Facilities : Unsecured Loans 31.03.2011 31.03.2010

(Rs. In Millions)

Rupee Term Loans Banks Unsecured 1680.537 2722.657

Foreign Currency Loans Banks Unsecured

1077.861 127.981

Total 2758.398 2850.639

NOTE:-

• Repayable within One Year. The above loan is guaranteed by a corporate guarantee for Rs. 7,330,850,000 given by Ingram Micro Inc., USA.

Banking Relations : -- Auditors :

Name : Price Waterhouse Chartered Accountants

Address : 252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400028, Maharashtra, India

PAN No.: AAEFP5579P Holding Company : • Ingram Micro Inc., USA

• Ingram Micro Asia Holdings Inc., USA

• Ingram Micro Asia Limited, Singapore

• Techpac Mauritius Limited (Up to November, 2009) Subsidiary Company : • Ingram Micro (India) Exports Pte. Limited




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Fellow Subsidiary Companies :

• Ingram Micro Australia Pty. Limited

• Ingram Micro NZ Limited

• Ingram Micro Singapore (South Asia) Pte Limited

• Ingram Micro Asia Pacific Pte. Limited

• Ingram Micro Malaysia SDN BHD

• Ingram Micro (Thailand) Limited

• Ingram Micro Lanka (Private) Limited

CAPITAL STRUCTURE

(AS ON 30.09.2011) Authorised Capital :

No. of Shares Type Value Amount

19000000 Equity Share Rs.10/- each Rs.190.000 millions

1300000 1% Redeemable Cumulative Convertible Preferences Shares

Rs.100/- each Rs.130.000 millions

Total Rs. 320.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares Type Value Amount

18492817 Equity Share Rs.10/- each Rs.184.928 millions

NOTES: - Of the above, 18492710 Equity shares are held by Ingram Micro Asia Limited, the Holding Company




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FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS

31.03.2011 31.03.2010 31.03.2009

SHAREHOLDERS FUNDS

1] Share Capital 184.928 184.928 157.800

2] Share Application Money 0.000 0.000 27.128

3] Reserves & Surplus 6415.505 5562.567 4409.547

4] (Accumulated Losses) 0.000 0.000 0.000

NETWORTH 6600.433 5747.495 4594.475

LOAN FUNDS

1] Secured Loans 0.000 0.000 0.000

2] Unsecured Loans 2758.398 2850.639 1261.405

TOTAL BORROWING 2758.398 2850.639 1261.405

DEFERRED TAX LIABILITIES 0.000 0.000 0.000

TOTAL 9358.831 8598.134 5855.880

APPLICATION OF FUNDS

FIXED ASSETS [Net Block] 29.970 37.206 52.496

Capital work-in-progress 0.000 0.000 0.000

INVESTMENT 1.168 1.168 1.168

DEFERREX TAX ASSETS 181.348 238.449 258.054

CURRENT ASSETS, LOANS & ADVANCES

Inventories 7056.269 5637.486 3961.918

Sundry Debtors 9149.194 8788.788 5243.954

Cash & Bank Balances 522.522 344.187 153.238

Other Current Assets 0.000 0.000 0.000

Loans & Advances 2598.133 2026.907 2033.119

Total Current Assets 19326.118 16797.368 11392.229

Less : CURRENT LIABILITIES & PROVISIONS

Sundry Creditor 8888.997 7754.986 5342.505

Other Current Liabilities 1206.714 602.819 291.038

Provisions 84.062 118.252 214.524

Total Current Liabilities 10179.773 8476.057 5848.067

Net Current Assets 9146.345 8321.311 5544.162

MISCELLANEOUS EXPENSES 0.000 0.000 0.000

TOTAL 9358.831 8598.134 5855.880




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PROFIT & LOSS ACCOUNT

PARTICULARS

31.03.2011 31.03.2010 31.03.2009

SALES

Income 83770.212 66298.263 66747.935

Other Income 345.341 263.724 203.249

TOTAL (A) 84115.553 66561.987 66951.184

Less EXPENSES

Consumption Materials Changes Inventories

80595.913 63289.481 63589.821

Employee Related Expenses 637.829 565.839 575.369

Administrative, Selling and Other Expenses

1238.872 807.762 932.868

TOTAL (B) 82472.614 64663.082 65098.058

Less PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)

1642.939 1898.905 1853.126

Less FINANCIAL EXPENSES (D) 291.444 120.329 248.697

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

1351.495 1778.576 1604.429

Less/ Add

DEPRECIATION/ AMORTISATION (F) 18.340 20.952 23.098

PROFIT BEFORE TAX (E-F) (G) 1333.155 1757.624 1581.331

Less TAX (H) 480.217 604.605 555.767

PROFIT AFTER TAX (G-H) (I) 852.938 1153.019 1025.564

Add PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

5378.726 4225.707 3200.143

BALANCE CARRIED TO THE B/S 6231.664 5378.726 4225.707

EARNINGS IN FOREIGN CURRENCY

FOB – Exports Sales 24.462 45.751 18.861

Sales Overseas Branch 1386.953 0.000 0.000

Rebate (Netted off against cost of sales)

386.483 209.983 199.345

Service Fee Charged to wholly Owned Subsidiary

44.005 41.520 46.007

Service Fees and expenses Charges to Wholly Owned

3.923 0.000 0.000




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Subsidiary – Overseas Branch

Expenses recovered 24.047 56.312 82.027

TOTAL EARNINGS 1869.873 353.566 346.240

IMPORTS

Traded Goods 23200.777 18743.146 18905.084

TOTAL IMPORTS 23200.777 18743.146 18905.084

Earnings Per Share (Rs.) 46.12 62.35 55.46

KEY RATIOS

PARTICULARS

31.03.2011 31.03.2010 31.03.2009

PAT / Total Income (%) 1.01 1.73 1.53

Net Profit Margin (PBT/Sales)

(%) 1.59 2.65 2.36

Return on Total Assets (PBT/Total Assets}

(%) 6.89 10.44 13.51

Return on Investment (ROI) (PBT/Networth)

0.20 0.31 0.34

Debt Equity Ratio (Total Liability/Networth)

1.96 1.97 1.55

Current Ratio (Current Asset/Current Liability)

1.90 1.98 1.95

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 Yes

9] Name of person contacted No

10] Designation of contact person No




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11] Turnover of firm for last three years Yes

12] Profitability for last three years Yes

13] Reasons for variation <> 20% ----------------------

14] Estimation for coming financial year No

15] Capital in the business Yes

16] Details of sister concerns Yes

17] Major suppliers No

18] Major customers No

19] Payments terms No

20] Export / Import details (if applicable) No

21] Market information ----------------------

22] Litigations that the firm / promoter involved in ----------------------

23] Banking Details Yes

24] Banking facility details 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] PAN of Proprietor/Partner/Director, if available No

32] Passport No of Proprietor/Partner/Director, if available No

33] Voter ID No of Proprietor/Partner/Director, if available No

34] External Agency Rating, if available No

OPERATIONS: The Accounts for the year were considered by the Audit Committee at its meeting held on August 31, 2011 and the financial statements were forwarded to the board along with comments and recommendation. During the year, the Company achieved total turnover of Rs.83770.212 Millions and after providing for depreciation of Rs.18.340 Millions and Finance Cost of Rs.291.444 Millions, the Company earned a profit before tax of Rs.1333.155 Millions. After providing for Income Tax (Current tax – Rs.425.000 Millions and Deferred tax of Rs.57.100 Millions, the Profit after tax stood at Rs.852.938 Millions. During the year the business grew across all the segments. The demands generated in the market were largely from the consumer and public sector projects. The company gained market share and growth however due to high competitive market there was drop in margin and pressure on working capital. During the year the Singapore branch commenced its business. The revenue and expenses of the branch have been included in the financials.




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BUSINESS OUTLOOK: The economic climate in India as well as global markets is expected to continue to be subdued. This is likely to result is lower than expected growth rates in IT infrastructure deployment in small and medium businesses. The company expects growth to come primarily from Government and public sector segment for IT product lines, however, this is likely to exert pressure on working capital for the company. The consumer market is expected to grow strongly with increasing demand for smart phones, laptops and tablets. This is likely to benefit the company. The company continues to focus on cost optimization and working capital improvement while developing services capability to improve overall profitability. CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars 31.03.2011 31.03.2010

Claims against the Company not acknowledged as debt * 49.631 49.717

Guarantees given by the Company’s Bankers 3.774 3.520

Guarantee issued to Bank 37.286 0.000

Sales tax demands disputed by the Company * 374.920 394.722

Custom duty tax matters disputed by the Company * 17.208 11.050

Income and Wealth Tax demands disputed by the Company * 24.441 68.367

* The timing and amount of cash flows, if any, that may arise from the above matters, will be determined only on settlement of the cases.

FIXED ASSETS:

• Leasehold Improvement

• Machinery and Equipments

• Computer Hardware

• Vehicles

• Goodwill

• Assets taken on finance lease vehicles. AS PER WEBSITE PRESS RELEASE Zoho Corp. Inks Partnership with Ingram Micro to Market SaaS Based Products in India Chennai, Tamilnadu, India, Monday, June 25, 2012 -- (Business Wire India) Helping people work online, Zoho, one of the pioneers in the global SaaS space, today announced its partnership with Ingram Micro, to market its SaaS based Business Solutions in India.




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Zoho Corp. has appointed Ingram Micro India Limited as their distributor partner to resell all Zoho products (Productivity Applications, Collaboration Applications and Business Applications) in India and other SAARC countries such as Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. In this partnership, Ingram Micro will sell all of Zoho’s cloud based products through its over 10,000 reseller partners in these countries. Zoho has over 25+ cloud based products that range from CRM to Mail, Office Suite, Sites, Project Management, Invoicing, Web conferencing and more. Speaking on the partnership, Sudhakar S Marthi, Vice President Sales and Marketing – APAC, Zoho Corp. said, “Customers use Zoho products to run their business processes, manage their information and be more productive while at the office or on the go, without having to worry about obsolete hardware or software. We are delighted to have partnered with Ingram Micro, which will help us further strengthen our position in the market.” Jaishankar Krishnan, Managing Director, Ingram Micro India Limited said, “Ingram Micro continues to increase its association with vendors focused on delivering great applications using cloud. Our comprehensive approach to building a portfolio of cloud services will help our partners in identifying and implementing the solutions of tomorrow. Our partnership with Zoho, brings a great suite of products to our partner ecosystem, giving them the ability to integrate a proven and established solution in their offerings to customers” About Zoho Zoho is a division of Zoho Corporation, a privately-held and profitable company, with offices in California, Austin, New Jersey, Chennai, Singapore, Tokyo and Beijing. Zoho Corporation serves the technology needs of more than 50,000 customers worldwide. Zoho offers a comprehensive suite of award-winning on-line business, productivity and collaboration products on the cloud. Customers use Zoho products to run their business processes, manage their information and be more productive while at the office or on the go. Zoho has online products ranging from CRM to Mail, Office Suite, Project Management, Invoicing, Web conferencing and more.




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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.




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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.55.69 UK Pound 1 Rs.89.20 Euro 1 Rs.72.10

INFORMATION DETAILS

Report Prepared by : NTH




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SCORE & RATING EXPLANATIONS

SCORE FACTORS

RANGE POINTS

HISTORY 1~10 5

PAID-UP CAPITAL 1~10 6

OPERATING SCALE 1~10 7

FINANCIAL CONDITION

--BUSINESS SCALE 1~10 8

--PROFITABILIRY 1~10 8

--LIQUIDITY 1~10 8

--LEVERAGE 1~10 7

--RESERVES 1~10 8

--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 NO

--OTHER MERIT FACTORS YES/NO YES

TOTAL 64

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%)




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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

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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.



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