MIRA INFORM REPORT

Report Date :

07.02.2007

IDENTIFICATION DETAILS

Name :	RELIANCE TELECOM LIMITED
Registered Office :	Main Admin Building, Block GF 1, Village Meghpur – Padana, Taluka Lalpur, Jamnagar-361280, Gujarat
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	01.03.1994
Com. Reg. No.:	04-21442
CIN No.: [Company Identification No.]	U32100GJ1994PLC021442
TAN No.: [Tax Deduction & Collection Account No.]	AHMR00755G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in providing of basic telecom services. The company is engaged in providing of value added telecom services such as paging, e-mail, cellular phone, video conferencing, internet, etc. The company provides Cellular – Mobile Phone Services in Gujarat, Madhya Pradesh, West Bengal, Himachal Pradesh, Orissa and Assam. The company has obtained a license from the Directorate of Telecommunication, Government of India for 10 years.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 4000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Unknown
Comments :	Subject is a part of (now) Anil Ambani Group. Available Information indicates high financial responsibility of the company. Trade relations are fair. General financial is satisfactory. Payments are correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Main Admin Building, Block GF 1, Village Meghpur – Padana, Taluka Lalpur, Jamnagar-361280
Tel. No.:	91-288-3010101
E-mail :	htoprani@leelalace.com hitesh.chawda@relianceada.com
Status :	Owned
Head Office :	“E” Block, 1^st Floor, Dhirubhai Ambani Knowledge City, Opp. Koparkhairana Railway Station, Thane Belapur Road, Navi Mumbai
Tel. No.:	91-22-3037333/ 27624000
Fax No. :	91-22-30376622
Administrative Office :	172/2 Premchand House Annexe, Ground Floor, Opp. High Court Way, Ashram Road, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79- 30331000, 30331011, 30331012
Fax No. :	91-79-26586132, 30331623
E-Mail:	Subodh.saxena@relianceinfo.com
Website:	http://www.ril.com
Branches :	3^rd Floor, Maker Chambers – IV, 222, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91 – 22 – 284 2929

DIRECTORS

Name :	Mr. Anil Dhirubhai Ambani
Designation :	Director
Address :	Sea Wind, 39, Cuffe Parade, Mumbai-400005
Date of Birth :	04.06.1959
Date of Appointment:	23.07.2005
Name :	Mr. Mukesh D. Ambani
Designation :	Chairman
Address :	Sea Wind, 39, Cuffe Parade, Mumbai-400005
Date of Birth :	19^th April 1957
Qualification:	B.E. (Chemical), MBA from Stanford University, U. S. A.
Experience:	22 Years
Date of Appointment:	11^th December, 2003
Telephone No.:	91-22-22870303
E-Mail :	Info@ril.com
Name :	Mr. Bhagwan D Khurana
Designation :	Director
Address :	Abhishek Row House No. 1, DN Link Nagar, Juhu, Versova Link Road, Andheri (W), Mumbai
Date of Birth :	12.05.1944
Date of Appointment :	03.03.2001
Name :	Mr. Satush P .Seth
Designation :	Director
Address :	4^th Floor, Summer Villa, 7^th Road, Santacruz (E), Mumbai
Date of Birth :	13.08.1955
Name :	Mr. Alok Agarwal
Designation :	Director
Address :	701-B, Falcon Castle CHS Limited, Senapati Bapat Marg, Lower Parel, Mumbai
Date of Birth :	30.12.1957
Name :	Mr. Atul S. Dayal
Designation :	Director
Address :	21, Valenina Naoroji Gamadia Road, Mumbai – 400006
Date of Birth :	21.09.1948
Date of Appointment :	28.02.1995
Date of Ceasing :	23.07.2005
Name :	Mr. V Balasubramanian
Designation :	Director
Address :	A-96, New Friends Colony, New Delhi - 110056
Date of Birth :	21.12.1937
Date of Appointment :	28.02.1995
Date of Ceasing :	23.07.2005
Name :	Mr. Shri Prakash Shukla
Designation :	Director
Address :	Flat No. 1703/4, 17^th Floor, Chaitanya D Blog, Prabhadevi, Mumbai – 400025
Date of Birth :	03.10.1959
Date of Appointment :	15.06.2002
Name :	Mr. Akhil K. Gupta
Designation :	Director
Address :	Seawind, 39 Cuffe Parade, Colaba, Mumbai
Date of Birth :	20.07.1952
Date of Appointment :	25.07.1998
Name :	Mr. Satish R. Parikh
Designation :	Director
Address :	6, Nita Apartments, Shimpoli Road, Borivali (W), Mumbai
Date of Birth :	12.01.1955
Date of Appointment :	10.01.1955
Name :	Mr. Satish P. Seth
Designation :	Director
Address :	Sunmar Villa, 4^th Floor, 7^th Road, Santacruz [East], Mumbai – 400055, Maharashtra, India
Date of Birth :	13.08.1955
Date of Appointment:	11.04.1997
Name :	Mr. Bharat Morarjijee Patel
Designation :	Director
Address :	At & Post Kothamadi, Navasari, Bulsar – 396445, Gujarat
Date of Birth :	13.03.1958
PAN No. :	00065453
Name :	Mr. Bipin Morarjee Patel
Designation :	Director
Address :	At & Post Kothamadi, Navasari, Bulsar – 396445, Gujarat
Date of Birth :	06.04.1965
PAN No. :	00065489

KEY EXECUTIVES

Name :	Mr. Bhaskar Guha
Designation :	Manager
Address :	1647/9/5, Prince Anwar Shah Road, Lake Garden, Kolkata – 700045, West Bengal, India
Date of Birth :	08.07.1952
Date of Appointment:	01.06.2002
Name :	Mr. Subodh Suxena
Designation :	President
Address:	172/2 Premchand House Annexe, Ground Floor, Opp. High Court Way, Ashram Road, Ahmedabad – 380 009, Gujarat, India
Date of Birth/Age :	58 Years
Qualification:	B. Sc., B.E. (Electrical and Telecom), MBM, MDP
Experience :	38 years
E-mail:	Subodh.saxena@relianceinfo.com
Tel No.:	91-79-30331000 / 30331011-20
Name :	Mr. Ramesh D. Sharama
Designation :	Company Secretary
Address :	19/304, Sanskruti Complex, Thakur Complex, Kandivali (East), Mumbai
Date of Birth/Age :	18.07.1969
Name :	Mr. Gaurang C. Shah
Designation :	Company Secretary
Address :	Flat 204, A-Wing, Raj Vaibhai – 1, Mahauir Nagar, Kandivali (W), Mumbai
Date of Birth/Age :	13.12.1961
Date of Appointment :	01.09.2004

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Reliance Infocomm Infrastructure Private Limited	4225060
Reliance Capital Limited	39860
Mr. Shri Satish Parikh	2500
Silvassa Hydrocarbons & Investments Private Limited	4185300
Reliance Petroproducts Private Limited	50
Reliance Business Management Private Limited	4382100
Reliance Industries Limited	1993000
Reliance Industries Limited	5102080
Reliance Industries Limited	50
Reliance Industries Limited	45000000
TOTAL	64930000

BUSINESS DETAILS

Line of Business :	Subject is engaged in provision of basic telecom services. The company is engaged in providing of value added telecom services such as paging, e-mail, cellular phone, video conferencing, internet, etc. The company provides Cellular – Mobile Phone Services in Gujarat, Madhya Pradesh, West Bengal, Himachal Pradesh, Orissa and Assam. The company has obtained a license from the Directorate of Telecommunication, Government of India for 10 years.
Products :	Basic and Cellular Mobile Telephone Services. ‘Reliance India Mobile’
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

• Buying Agents
• Clinics
• Construction Cos.
• Corporate Accounts
• Electronics Industry
• Financial Institution
• Hospitals
• Hotels
• Individuals
• Manufacturers
• Related Companies
• Schools
• End-Users
• Trading Firms

No. of Employees :

270

Bankers :

• ICICI Bank Limited, Mumbai, India
• Syndicate Bank, Merchant Banking Division 58/64, Hari Chambers, Shahid Bhagat Singh Road, Fort, Mumbai
• Deutche Bank, Fort, Mumbai
• HDFC Bank

Facilities :

(Rs in Millions)
		Amount Sanctioned	Amount Disbursed	Outstanding
Deutche Bank	Fund Based	560.000	560.000	2691.545
ICICI Bank Limited	Fund Based	50.000	50.000	50.000
Hypothecation of Stock, Book debts and other movable assets of the company.

Banking Relations :	Satisfactory
Auditors :	Ø Deloitte, Haskins & Sells Chartered Accountants Mafatlal House, Backbay Reclamation, Mumbai – 400020, Maharashtra, India Ø Chaturvedi & Shah Chartered Accountants A3, Laxmi Towers, 1^st Floor, Bandra Kurla Complex, Bandra [East], Mumbai – 400051, Maharashtra, India Tel.: 91-22-2308500 Fax: 91-22-2872703/2846585 PAN No. : AACFD4815A
Subsidiaries :	Reliance Telephone Limited CIN No. : U64200GJ1994PLC023476 Reliance Mobile Limited
Affiliates:	Reliance Industries Limited Reliance Internet Services Limited Terene Fibers Indian Private Limited Silver Industries Limited Reliance Consolidated Enterprises Limited Reliance Venture Limited
Group Companies :	Reliance Capital Limited Reliance Industrial Investment Holding Limited Reliance Petro Products Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
120,000,000	Equity Shares	Rs. 10/- each	Rs. 1200.000 millions
100,000,000	Preference Shares	Rs. 10/- each	Rs. 1000.000 millions
280,000,000	Unclassified Shares	Rs. 10/- each	Rs. 2800.000 Millions
	TOTAL		Rs. 5000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19,930,000	Equity Shares	Rs. 10/- each	Rs. 199.300 millions
45,000,000	Preference Shares	Rs. 10/- each	Rs. 450.000 millions
	TOTAL		Rs. 649.300 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		649.300	649.300	649.300
2] Reserves & Surplus		443.065	140.500	26.500
3] Profit and Loss Account (Accumulated Losses)		0.000	0.000	(88.716)
NETWORTH		1092.365	789.800	587.084
LOAN FUNDS
1] Secured Loans		0.000	0.000	2741.545
2] Unsecured Loans		1250.000	1550.000	770.000
TOTAL BORROWING		1250.000	1550.000	3511.545
TOTAL		2342.365	2339.800	4098.629
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3243.717	3772.169	4504.336
Work In progress		143.400	490.312	89.546
INVESTMENT		0.519	30.500	31.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
Intangible		0.000	434.977	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.526	33.422	15.857
	Sundry Debtors	259.941	206.540	231.596
	Cash & Bank Balances	11.346	8.620	10.676
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	371.539	246.395	118.341
Total Current Assets		665.352	494.977	376.470
Less : CURRENT LIABILITIES & PROVISIONS		1710.648	2883.135	912.305
Total Current Liabilities		1710.648	2883.135	912.305
Net Current Assets		[1045.296]	(2388.158)	(535.835)
MISCELLANEOUS EXPENSES		0.025	0.000	9.581
TOTAL		2342.365	2339.800	4098.629

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	6590.771	4531.969	3612.114
Profit/(Loss) Before Tax	434.290	123.810	13.583
Provision for Taxation	43.175	9.708	1.044
Profit/(Loss) After Tax	391.115	114.102	12.539
Total Expenditure	6156.481	2658.763	369.371

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	5.93	2.52	0.01
Net Profit Margin (PBT/Sales)	(%)	6.58	2.73	0.37
Return on Total Assets (PBT/Total Assets}	(%)	11.10	2.90	0.27
Return on Investment (ROI) (PBT/Networth)		0.39	0.16	0.02
Debt Equity Ratio (Total Liability/Networth)		2.71	5.61	7.53
Current Ratio (Current Asset/Current Liability)		0.38	0.17	0.41

LOCAL AGENCY FURTHER INFORMATION

The company’s registered office was shifted from H Block, 1^st Floor, A Wing, Dhirubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai – 400710 to the present address w.e.f. 01.05.2006.

History of the Firm i.e. who started, when management change, profile of the principals and key executive etc.

The Company belongs to Reliance Group. The company was incorporated with Registrar of Companies, Gujarat on 1-03-1994 as Reliance Telecom private Limited at Sr. 04-21442. the Companies was promoted mainly for providing basic and Cellular Telephony services. Later become Reliance Telecom limited on 25-11-1997. The company has Cellular liances to operate in 7 circles covering 15 states. As per the scheme of demerger approved by Hon. Gujarat High Court, basic Telephone services of Reliance Telecom limited was demerged and transferred to Reliance zinfocomm Limited from 6-03-2003.

RTL which began its operations in 1997-98, provides GSM services in 7 telecom circles covering 206 towns in 11 states in India

RIL and its subsidiaries hold 35.6 % of RTL after the 10 % holding of Nynex international Limited was acquired in April 2004. Despite stiff competitions Subscriber base grew by 32.500 Millions to reach 1.120 millions reflecting 41 % growth. RTL is increasing its capacity to cater to increased traffic as a result of increase in usage and subscriber base.

The department of Telecom, Government of India had earlier directed that prepaid services should be discontinued in the state of Assam and the North East. In compliance, RTL had completed subscribers plan migration to postpaid service.

Recently RTL has launch GSM operation in Kolkatta it has been able to fill up the gap in Estern corridor.

RTL has drawn up ambitious plans to expand services in another 500 town in the coming months. As per provisional figures of 31-03-2005, RTL has registered total income of Rs. 45.300 Millions with total assets base of Rs. 51.300 Millions and net Profit of Rs. 1.100 Millions.

Financial Review

Operating profit, before other income, was Rs. 7,2780 millions (US$ 1,653 million), against Rs. 5,9750 millions for the corresponding previous period, an increase of 22%

The company's net operating margin was lower during the period at 18.9% mainly due to significant increase in price of crude oil during the half-year, which was not fully absorbed in domestic price of petroleum products.

Other income decreased to Rs. 4160 millions (US$ 94 million), from Rs. 6430 millions on account of the company exercising its option to convert the Preference shares of Reliance Infocomm Limited with effect from 1st April 2005. This was partially offset by higher interest income from current investments and fixed deposits.

Interest expenditure decreased 49% to Rs. 4580 millions (US$ 104 million) due to appreciation of the rupee and reduction in debt.

Depreciation was at Rs. 1,5950 millions (US$ 362 million) as against Rs. 1,8300 millions for the corresponding previous period. The decrease is on account of assets sold during 2004-05 and impact of WDV depreciation on petrochemical assets

The outflow on account of capital expenditure was over Rs. 4,2000 millions (US$ 954 million), primarily on account of oil and gas, petrochemical capacity expansions and normal capital expenditure.

Business Review

Oil & Gas (E&P)

RIL's oil and gas strategy is aimed at further enhancing the level of vertical integration in its energy business, and capturing value across the entire energy chain, while fulfilling important national priorities.

RIL is the largest exploration acreage holder among the Private sector companies in India with 34 domestic exploration blocks covering an area of about 340,000 sqkm. This is in addition to its interest in one exploration block each in Yemen and Oman. Reliance also has 5 coal bed methane blocks covering an area of about 4000 sq. km.

12 exploration blocks were awarded under the 1st round of the New Exploration Licensing Policy (NELP-I) of Government of India, 4 blocks in NELP II, 9 blocks in NELP III and 1 block in NELP IV. Reliance has been awarded 5 more exploration blocks under the just concluded NELP V. The Production Sharing Contract has been signed and application for exploration license has been submitted.

The Company and various partners, including ONGC Ltd. and Oil India Ltd., were awarded two exploration blocks prior to NELP. The Company has also acquired the operating rights of four exploration blocks from Tullow Oil plc, a UK Company.

Three blocks out of the above-awarded blocks have been relinquished as the expected deposits were found to be sub-economic.

In the Yemen onshore block where Reliance had oil discoveries, the development plan has been approved by Ministry of Yemen. Further exploration activity is also under progress and results are quite encouraging.

In the Oman offshore block, where RIL is the Operator, the existing seismic data has been collected and contract for reprocessing of data is being finalized.

During the quarter, processing and interpretation of acquired data have been taken up in an accelerated manner.

Building on the giant Dhirubhai gas discovery, Reliance continued with the exploratory drilling campaign in the discovery block KG-DWN-98/3 in the Krishna Godavari Basin. First Development well was spud and drilling operations are in progress. Detailed evaluation drilled wells are in progress.

The contract for development is slated to be awarded in calendar Q1-06.

The exploration in the CBM block of RIL is also progressing as per plan.

Reliance has deployed state-of-the-art technology, and is working with leading international technology and service providers for the E&P project, covering all activities, such as seismic studies, processing and interpretation of data and drilling.

RIL also holds a 30% interest in an unincorporated Joint Venture with British Gas and ONGC, to develop the proven Panna-Mukta and Tapti oil & gas fields. British Gas has a 30% share and ONGC the balance 40% share.

The Panna-Mukta fields produced 725,340 tonnes of crude oil and 22.32 billion cubic feet (632 MMSCM) of gas during the half year under report.

The Tapti field produced 40.46 billion cubic feet of gas (1,145 MMSCM) during the half year under report.

Refining & Marketing (R&M)

During the period under report, the domestic demand for petroleum products reduced by 0.6% compared to first half of last year. This is against 5.5% growth last year compared to the corresponding previous period.

The consumption of HSD, which accounts for more than a third of the total consumption of petroleum products, registered a negative growth of 0.6%, against a growth of 8.8% during the corresponding previous period. LPG demand showed significantly lower growth of 0.8% against 13.8% growth during the corresponding previous period. Demand for MS grew by 4.3%. The demand of Aviation turbine fuel grew by 14.7% during the half year. Naphtha sales fell by 11.2% and Kerosene sales increased slightly by 0.8%.

The average prices of WTI, Brent and Dubai for the half year period were $ 58.1 per barrel, $ 56.7 per barrel and $ 51.7 per barrel respectively while the peak prices were $ 69.9 per barrel, $ 67.3 and $ 59.2 per barrel respectively.

The global refining industry in general and the US refining industry in particular was dramatically influenced by the two hurricanes, Katrina and Rita that hit US Gulf coast on 29th August & 24th September respectively. US Gulf coast is the major hub for US refining with total capacity of about 4.7 mn b/d or 27.5% of US capacity. Almost all of this closed during 2 hurricanes. Reportedly as of end Sep '05 3.1 mn b/d capacity still remains closed.

International Energy Agency revised down its global oil demand growth forecast for 2005 to 1.26 million b/d, due to regional economic and logistical disruptions as well as retail price spikes in US due to Katrina and Rita and weaker outlook for China but has maintained a demand growth forecast of 1.75 million b/d for 2006.

The refinery margins were robust in all the regions as product price increases were higher than the concomitant rise in crude oil prices.

During the period under review, Reliance recorded 96% capacity utilisation at its Jamnagar Refinery. The refinery processed 15.87 million tons of crude during the half year.

This capacity utilisation compares favourably with the utilisation rates for other refineries, both in India and abroad, at 91% for North America, 87% for Europe, and 89% for Asia Pacific region.

Exports of refining products during the period under review were 5.2 million tons, compared to 4.8 million tons in the corresponding period last year.

The implementation of setting up of Retail Outlets at various locations is in full swing. Reliance already has the necessary approvals for setting up 5,849 retail outlets in India.

As on date, over 850 outlets are operational. The response from these retail outlets is encouraging as the throughput per outlet is higher than the industry norms. By the end of March 2006, Reliance will have significant presence in the retailing of transportation fuels. Reliance will continue to set new standards for services and product quality through its retail outlets. This will help improve margins, overall return on capital and consequently, shareholder value.

Petrochemicals

Polyester: Reliance is the country's largest manufacturer of PFY, PSF and PET, with a market share of 50%.

RIL's production volumes of PFY, PSF and PET increased by 7% to 549,000 tonnes.

Reliance has maintained its focus on speciality products. 56% of PSF production and 36% of PFY production represented niche products, contributing a premium of up to 50% over commodity prices.

Demand for PFY, PSF and PET, for the period under review, was 7% higher at 896,000 tonnes.
Reliance also continues to be the largest manufacturer of polyester intermediates, PX, PTA and MEG, in the country, with a market share of 77%.

Production of PX, PTA and MEG increased by 5% to 16,08,000 tonnes

Polymers: Reliance is the largest manufacturer of PP, PE and PVC, in the country, with a market share of 46%.

Production volumes of PP, PE and PVC decreased 3% to 939,000 tonnes.

There was an increased focus on high value premium products, with speciality grades contributing 19% of production, and generating a premium of up to 14% over commodity prices.

Domestic demand for PP, PE and PVC, for the period under review, was 12% higher at 1,892,000 tonnes.

RIL operates the world's largest grassroots, multi-feed cracker at its Hazira petrochemicals complex. During the period under review, Reliance produced 421,000 tonnes of ethylene and 200,000 tonnes of Propylene.

Chemicals: During the half-year under review, Linear Alkyl Benzene (LAB) production was 56,000 tonnes. Reliance has a market share of 24% in LAB.

During the half-year, Reliance has successfully commissioned the 140,000 tonnes per annum capacity Butadiene plant at Hazira. Butadiene production during the half-year was 33,000 tonnes.

Name of the company

RELIANCE TELECOM LIMITED

Presented By

RELIANCE TELECOM LIMITED

1) Date and description of instrument creating the change

Debenture Trust Deed dated February 26, 1998, made between Reliance Telecom Limited [hereinafter referred to as the company] of the one part and Syndicate Bank [hereinafter referred to as ‘the Trustees] if the other part

Further modified by deed of additional security dated 21^st June, 1999 executed by the company in favour of on all the company’s fixed assets, both present and future, as more particularly described in schedule there under written

Further modified by deed of modification and confirmation dated 30^th April, 2002, made between Reliance Telecom Limited [hereinafter referred to as the company] of the one part and Syndicate Bank [hereinafter referred to as the trustees] of the other part

2) Amount secured by the charge/amount owing on the securities of charge

1. 3007- 9.75% Secured Redeemable Non – Converitble Debentures of the face value of Rs. 0.500 million each, aggregating Rs. 1503.500 millions [Scrics 1 Debentures]

2. 1036-10.25% secured redeemable non-convertible debentures of the face value of Rs. 0.500 million each, aggregating Rs. 518.000 millions [Series II Debentures]

3. 7957 – 10.50% Secured redeemable non – convertible debentures of the face value of Rs. 0.500 million each, aggregating Rs. 3978.500 millions [Scrics III Debentures]

Series I debentures, Series II Debentures and Series III Debentures collectively referred to as the Debentures all aggregating [i], [ii], [iii], all aggregating Rs. 6000.000 millions

By deed of modification and confirmation dated 30^th April, 2002 made between Reliance Telecom Limited of the one part and Syndicate Bank of the other part, debentures shall mean ICICI Debentures and RIL Debentures wherein “ICICI Debentures’ mean collectively :

2506, 9.75% non-convertible debentures of Rs. 0.500 million each aggregating Rs. 1253.000 millions guaranteed by ICICI [hereinafter referred to as “ICICI Series I Debentures]

516, 10.25% Non-convertible Debentures of Rs. 0.500 million each, aggregating Rs. 258.000 millions guaranteed by ICICi [hereinafter referred to as “ICICI series II debentures]

4710, 10.50% non – convertible debentures of Rs. 0.500 million each, aggregating Rs. 2355.000 millions guaranteed by ICICI [hereinafter referred to as ICICI Series III Debentures]

Allotted by the company on December 9, 1997;

RIL Debentures mean, collectively;

i. 501, 9.75% non-convertible debentures of Rs. 0.500 million each, aggregating Rs. 250.500 millions guaranteed by RIL [hereinafter referred to as the RIL Series I Debentures]

ii. 520, 10.25% Non-Convertible debentures of Rs. 0.500 million each, aggregating Rs. 260.000 millions guaranteed by RIL [hereinafter referred to as the RIL Series II Debentures]

iii. 3247, 10.50% non – convertible debentures of Rs. 0.500 million each, aggregating Rs. 1623.500 millions guaranteed by RIL [hereinafter referred to as the RIL Series III Debentures

allotted by the company on December 9, 1997

ICICI Debentures and RIL debentures collectively referred to as the debentures all aggregating Rs. 6000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All and singular the lands and all other fixed assets as more particularly described in the first schedule of the aforesaid debenture trust deed together with all buildings, structures, erections, masts, antennas, towers, godowns, and constructions of every description which are now erected, standing or attached or shall at any time hereafter during the continuance of the security thereby constituted be erected and standing or attached to the aforesaid lands and premises or any part thereof and all the plant and machinery attached to the earth or permanently fastened to anything attached to the earth [save and except the Excluded assets viz. the licenses of the company] and all trees, fences, hedges, ditches, ways, sewages, drains, waters, water-courses, liberties easements and appurtenances whatsoever to the aforesaid lands or any part thereof belonging to or in anywise appertaining or usually held, occupied, enjoyed therewith or reputed or belong or be appurtenant thereto and all the estate, right, title, interest, property, claim and demand whatsoever o the company into and upon the same, to have and to hold all and singular the aforesaid premises unto and to the use of the trustees upon trust and subject to the powers and provisions therein contained and subject also to the proviso for redemption thereinafter mentioned.

Provided the mortgage referred to above shall rank second to the mortgages and charges created / ot be created on first charge basis in favour of the financial institutions / banks / other lenders for their various loans and / or the debenture trustees for any further series of debentures to be issued by the company

4) Gist of the terms and conditions and extent and operation of the charge.

For securing the principal amount of the debentures interest, trustees remuneration and all other monies, the company assured, assigned and transferred to the trustees the whole of the mortgaged premises as and by way of mortgage subject to the powers and provisions contained therein and subject also to the proviso for redemption ;

Debentures to rank pari passu

a. The series I Debentures shall rank pari passu interse without any preference or priority of one over the other or others of them

b. The series II debentures shall rank pari passu interse without any preference or priority of one over the other or others of them

c. The series III debentures shall rank pari passu interse without any preference or priority of one over the other or others of them

iii. Interest on Debentures

The company shall pay interest on the principal amount of the debentures at the following rates [subject to deduction of Income – tax at source at the rates for the time being prescribed under the Income Tax Act, 1961 and rules made thereunder or any statutory modification or re-enactment thereof for the time being in force :

Debenture Series	Rate of Interest per annum	Rate of Interest per annum in case of withdrawal of Section 10 [23G] of the Income Tax Act, 1961 benefits
Series I	9.75%	12.50%
Series II	10.25%	13.00%
Series III	10.50%	13.50%

Interest would be payable from the Date of allotment and would be payable half yearly on January 1 and July 1 for the six monthly interest period ending on December 31 and June 30 in each year throughout the tenure of the debentures and on redemption thereof. However, the first interest payment will be made on January 1, 1998 and will cover interest due from the date of allotment upto December 31, 1997 and the last interest payment will be on redemption. Payment will be made by way of cheque[s] / interest warrant[s] which will be dispatched to the debentureholders 7 days before the due dates by registered post

Redemption

Unless previously redeemed or repurchased by the company, the debentures shall be redeemed inhte following manner :

Series I	Series II	Series III
The debentures will be redeemed at par through a bullet payment at the end of 5 years and 1 month from the deemed date of allotment i.e. on 08.01.2003	The debentures will be redeemed at par in three installments at the end of 5^th, 6^th and 7^th years from the deemed date of allotment i.e. on 08-12-2002, 8-12-2003 and 8-12-2004	The debentures will be redeemed at par in three installments of the end of 6^th 7^th and 8^th years arom the deemed date of allotment i.e. on 08-12-2003, 8-12-2004 and 8-12-2005
	35% 35% and 30 of the debentures shall be redeemed on the aforesaid dates respectively	35%, 35% and 30% of the debentures shall be redeemed on the aforesaid dates respectively

V. [a] Deposit of Money in Designated Account

The company shall deposit into the designated account on or before the Trigger Date[s], all or any amount of principal and / or interest in respect of the debentures payable to the debentureholders on the due dates

The company shall irrevocably authorize the designated bank [the scheduled bank with whom the designated account has been opened] to inform the amount lying to the credit of the designated as on the trigger dates

b. Payments :

Payment of the principal, all interest and other monies will be made to the registered debentureholders and in case of jointholders to the one whose name stands first in the register of debenturesholders. Such payments shall be made by cheque or warrant drawn in favour of the debentureholders by the company on its bankers

VI. the company shall with the prior approval of the Trustees be entitled to make further issue of debentures and / or raise term loans or raise further funds from time to time from any persons / banks / financial institutions / body corporate / any other agency

VII. Proceeds arising out of the sale, collection of the mortgaged premises to be distributed to the debentureholders on a pari passu basis

VIII Certain covenants on the part of the company

IX Power of removing trustees and appoint new trustees

X Various Powers of Trustees

XI Remuneraiton of the Trustees to be as follows :

a. Initial Fee of Rs. 0.050 million to be paid in January, 1998

b. Annual Fee of Rs. 0.350 million payable in two equal half yearly instalments in January and July of every year till redemption

In addition to all legal fees and out –of-pocket expenses etc.

By deed of modification and confirmation dated 30.04.2002, made between Reliance Telecom Limited of the one part and Syndicate Bank of the other part following modification were carried out :

a. The definition of debentures shall stand modified and be read as under :

debentures shall mean “ICICI Debentures and RIL Debentures wherein :

‘ICICI Debentures mean, collectively :

2506, 9.75% non-convertible debentures of Rs. 0.500 million each aggregating Rs. 1253.000 millions guaranteed by ICICI [hereinafter referred to as “ICICI Series I Debentures]

516, 10.25% Non-convertible Debentures of Rs. 0.500 million each, aggregating Rs. 258.000 millions guaranteed by ICICi [hereinafter referred to as “ICICI series II debentures]

4710, 10.50% non – convertible debentures of Rs. 0.500 million each, aggregating Rs. 2355.000 millions guaranteed by ICICI [hereinafter referred to as ICICI Series III Debentures]

Allotted by the company on December 9, 1997;

RIL Debentures mean, collectively;

i. 501, 9.75% non-convertible debentures of Rs. 0.500 million each, aggregating Rs. 250.500 millions guaranteed by RIL [hereinafter referred to as the RIL Series I Debentures]

ii. 520, 10.25% Non-Convertible debentures of Rs. 0.500 million each, aggregating Rs. 260.000 millions guaranteed by RIL [hereinafter referred to as the RIL Series II Debentures]

iii. 3247, 10.50% non – convertible debentures of Rs. 0.500 million each, aggregating Rs. 1623.500 millions guaranteed by RIL [hereinafter referred to as the RIL Series III Debentures

allotted by the company on December 9, 1997

as more specifically described in the Schedule V thereto

b.’Debentureholders’ or the Holders of Debentures shall stand modified and be read as under :

debentureholders or the holders of debentures means the several persons who are, for the time being, holders of the ICICI Debentures and RIL debentures.

Designated Account shall stand modified and be read as under :

Designated Account means the bank account number 05/1077 opened by the company with the Bank, into which the company shall deposit the principal, interest and other monies payable on the due dates in respect of the ICICI debentures and RIL debentures and shall include two separate sub accounts of such designated account one of which shall be in respect of RIL debentures and the other in respect of the ICICI Debenture into which sub accounts the principal, interest and other monies in respect of the RIL debentures and ICICI debentures respectively to be transferred from the designated account by the bank on a pro rata basis or deposited by RIL or ICICI, as guarantors, into the sub-account in respect of the RIL debentures or the ICICI debentures respectively, when called upon by the trustees

d. Due dates shall modified and be read as under :

Due dates shall mean the dates for payment of interest and principal in respect of the ICICI debentures and RIL debentures to the debenture holders as more particularly specified in Schedule VI thereunder written

e. Redemption Amounts shall stand modified and be read as under :

Redemption Amounts shall mean the amounts i.e. principal and interest as are due in respect of ICICI debentures and RIL debentures as set forth in Schedule VII thereof.

F. redemption dates shall stand modified and be read as under :

Redemption dates shall mean the dates of redemption of RIL Series I Debentures, RIL Series II debentures and RIL series III debentures, as more particularly described in Schedule VIII thereunder written

g. Guarantor shall stand modified and be read as under :

guarantor shall mean ICICI in respect of ICICI debentures and RIL in respect of RIL debentures respectively

h. The debentures of Rs. 6000 millions were secured by way of second charge under the debenture trust deed dated 26.02.1198 by a legal mortgage on the mortgaged premises and on all the company’s fixed assets, both present and future

5) Name and Address and description of the person entitled to the charge.

Syndicate Bank

Merchant Banking Division, 58/64, Hari Chambers, Shahid Bhagat Singh Road, Fort, Mumbai – 400023

6) Date and brief description of instrument modifying the charge

Deed of modification and confirmation dated August, 2003, made between Reliance Telecom Limited [hereinafter referred to as the company] of the one part and Syndicate Bank [hereinafter referred to as the trustee] of the other part

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The definition of debentures shall stand modified and be read as under :

ICICI debentures means collectively :

516, 10.25% Non-convertible Debentures of Rs. 0.325 million each, aggregating Rs. 167.700 millions guaranteed by ICICI

710, 10.50% Non-convertible Debentures of Rs.0.500 million each, aggregating Rs. 355.000 millions each guaranteed by ICICI

Allotted by the company on December 9, 1997 as more specifically detailed in Schedule V thereto

AS PER WEBSITE

Reliance Telecom Limited (RTL) is promoted by the Reliance Group.

RTL provides Cellular Services in 7 Telecom Circles encompassing 10 States of India. RTL's subscriber base increased by 46 per cent during the FY 2003-04 to 79.00 millions.

International Roaming was implemented from 1st December 2003 in all RTL circles, except Assam and North East where there is a restriction on international roaming. Roaming with more than 300 operators across the globe has been opened up through sponsor network using the signalling and billing solution from Roamware.

"TRAI approves Reference Interconnect Offer ( RIO ) of RTL vide their letter no 101-6/2002-MN (Pt) dated 9th October has approved the RIO of Reliance Telecom Ltd. for Cellular Licenses, to view details

Award

Growth is achievement

Reliance's commitment to excellence and the management's outstanding performance brought in several national and international awards, rankings and recognition for the company.

Corporate Rankings

RIL emerged as the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of World's Largest Corporations, July 2004.

RIL was the only Indian private sector company to be listed in the Top-500 companies in the world in terms of market value in BusinessWeek's The Global 1000 List, July 2004.

Reliance emerged in top positions in the following in Business Barons - TNS Mode Opinion Poll for 2004, August 2004.

• The Reliance Group emerged as India's Most Admired Business House for the fourth consecutive year.

• RIL emerged as India's Most Admired Company and was rated first in the poll on financial performance, returns to shareholders, growth prospects and ethics, and at second place on Management Quality

RIL received the following ranks in the survey by IMRB International based on a peer-perception survey published in Businessworld, November 2004.

• No.2 among India's Most Respected Companies.

• Emerged as India's Most Dynamic Organisation.

• No.2 among India's Most Globally Competitive Organisations.
  
  RIL emerged as Asia's Best Chemical Company in the seventh annual survey of the World's Best Companies in 2004 conducted by the Global Finance magazine, November 2004.
  RIL received the following ranks in the seventh annual global survey of corporate reputation conducted jointly by PricewaterhouseCoopers and the Financial Times, November 2004:

• Ranked 9th in the Top 10 list of the World's Most Respected Energy / Chemicals Companies.

• Ranked 3rd in India list of countrywise ranking of the World's Most Respected Companies.

• Ranked 45th in the world list of CEOs-Companies that create the Most Value for their Shareholders

• Ranked 55th in CEOs- Companies that demonstrate the Most Innovation.

RIL emerged as the Petrochemicals Company of the Year at the sixth annual Platts Global Energy Awards in New York, USA, December 2004 RIL was awarded International Refiner of the Year 2005 at the World Refining and Fuels Conference in San Francisco, March 2005, USA, by Hart Energy Publishing LP. RIL was the first Asian company to be so honoured in the 20-year history of this award.

Health, Safety and Environment (HSE)

• The Naroda Textile Division was awarded the Certification of OHSAS 18001 - 1999, for Occupational Health & Safety Management Systems, May 2004.

• RIL emerged as India's Greenest Company amongst the private sector with an overall rank of No. 2 in a BT - ACNielsen ORGMARG survey of shareholder perception published in Business Today, October 2004.

• Greentech's Platinum Award in the petroleum refinery sector was awarded to the Jamnagar refinery for Outstanding Achievement in Environment Management, November 2004.

Energy Management

The Jamnagar refinery received the award for Excellence in Energy Conservation from the Federation of Gujarat Industries, April 2004. Reliance refinery was ranked in the top position in Shell Benchmarking 'Energy & Loss' performance for the fourth consecutive year from around 50 refineries the world over, August 2004. The Jamnagar complex received CII's Excellence in Energy Management Award for the second successive year, October 2004. RIL won the following National Energy Conservation Awards 2004, December 2004.

• The Hazira and Jamnagar complexes claimed the first position in the Petrochemicals
  Sector and Refinery Sector respectively.

• The Patalganga complex received the special award in the Petrochemicals Sector

The Jamnagar complex received the FICCI Award Certificate and Shield in recognition of its high degree of energy efficiency, excellent water and energy conservation practices, commendable waste management practices and excellent pollution control facilities with innovative features, December 2004.

Quality

The Hazira complex received top honours and bagged the International Asia-Pacific Quality
Award in the category of Big Industry Organisation of more than 250 employees, September 2004. RIL was awarded the IT Excellence Award for 2004 by NASSCOM, September 2004.

The Jamnagar complex received a total of 9 Gold Certificates from Shell Global Solutions, Netherlands under SMPCS (Shell Main Products Correlation Scheme) Quality Pacesetting for its excellence in testing of fuel products, December 2004.

Exports

RIL won the following Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) awards for exports, March 2005:

• Three Gold Trophies, for the sixth year in a row, for exports in the year 2003-04

• The Gold for Best Overall Export Performance in the category of SRTEPC Special Award

• Best Export Performance in the categories of Polyester Staple Fibre and Polyester Filament Yarn

Management Awards

Mukesh D. Ambani was conferred the Asia Society Leadership Award by the Asia Society, Washington, USA, May 2004.

Mukesh D. Ambani ranked 13th in Asia's Power 25 list of The Most Powerful People in Business published by Fortune magazine, August 2004.

Mukesh D. Ambani was chosen Telecom Man of the Year 2004 by Voice and Data magazine, September 2004.

The Ambani brothers were the only two CEOs from one business group to feature amongst India's top five Most Admired CEOs. Anil D. Ambani ranked at number one and Mukesh D. Ambani at number five in Business Barons- TNS Mode Opinion Poll of India's Most Admired CEOs, published in Business Barons, September 2004.

Mukesh D. Ambani was conferred the World Communication Award for the Most Influential Person in Telecommunications in 2004 by Total Telecom, October 2004.

Mukesh D. Ambani ranked 42nd among the World's Most Respected Business Leaders and second among the four Indian CEOs featured in a survey conducted by PricewaterhouseCoopers and published in the Financial Times, London, November 2004.

Mukesh D. Ambani and Anil D. Ambani ranked No.2 by IMRB International in The Power 100 list of India Inc.'s Most Powerful CEOs, published in The Economic Times Corporate Dossier, December 2004. Anil D. Ambani was adjudged CEO of the Year at The Platts 2004 Global Energy Awards, December 2004.

The performance highlights of Reliance Industries Limited for the half-year ended September 30, 2005 are:

• Turnover of Rs. 427770 millions (US$ 9,718 million) against Rs. 33,6100 millions for the corresponding previous period, an increase of 27%
• Operating Profit (PBDIT) increased to Rs. 7,6940 millions (US$ 1,748 million) against Rs. 6,6180 millions for the corresponding previous period, an increase of 16%.
• Cash Profit (before depreciation and deferred tax) of Rs. 6,7390 millions (US$ 1,531 million) against Rs. 5,4190 millions for the corresponding previous period, an increase of 24%.
• Net Profit of Rs. 4,7910 millions (US$ 1,088 million) against Rs. 3,1890 millions for the corresponding previous period, an increase of 50%.
• The total paid up equity share capital stood at Rs. 1,3940 millions (US$ 317 million).
• Earnings Per Share (EPS) for the half-year is Rs. 34.4 (US$ 0.78) & Cash Earnings Per Share (CEPS) for the half-year is Rs. 48.3 (US$ 1.10).
  
  [Annualised Earnings Per Share (EPS) is Rs. 68.8 (US$ 1.56) & Annualised Cash Earnings Per Share (CEPS) is Rs. 96.6 (US$ 2.20).]
• The company's contribution to the national exchequer in the form of various taxes was Rs. 8,1730 millions (US$ 1,857 million) against Rs. 7,0770 millions for the corresponding previous period, an increase of 15%.
• The Company's production of oil & gas and petrochemicals, including toll conversion, is 6.54 million tonnes during the half-year, against 6.29 million tonnes for the corresponding previous period, an increase of 4%.
• The Company's refinery operated at 96% capacity utilisation and processed 15.87 million tonnes of crude during the half-year.
• Exports including deemed exports were Rs. 15,1760 millions (US$ 3,447 million), against Rs. 10,0360 millions for the corresponding previous period, an increase of 51%.

Notes:

1. The figures for the corresponding periods have been restated, wherever necessary, to make them comparable.

2. The Company has filed an application with the Honourable High Court of Mumbai to demerge certain undertakings into four new resulting companies. The shareholders, secured and unsecured creditors at their respective meetings held on 21st October 2005, have approved the demerger scheme as directed by the High Court of Mumbai with effect from the appointed date i.e., 1st September, 2005. The Company has filed a petition along with the Scheme with the Honorable High Court of Mumbai for approving the scheme. Necessary accounting effect shall be given once the scheme becomes effective.

3 (a) The Company, based on the report by international valuers, has revalued plant, equipment and buildings situated at Patalganga, Hazira and Jamnagar as at 1st August 2005 by an amount of Rs 22,4970 millions (US$ 5,111 million) and an equivalent amount has been credited to Revaluation Reserve Account. Consequent to the revaluation, there is an additional charge for depreciation of Rs. 3530 millions (US$ 80 million) for the half-year ended 30th September 2005 and an equivalent amount has been withdrawn from Revaluation Reserve. This has no impact on profit for the period.

(b) The Company had revalued its plant and machinery situated at Patalganga and Naroda in 1997-98. Consequent to the revaluation, there is an additional charge for depreciation of Rs. 220 millions (US$ 5 million) for the half-year ended 30th September 2005 and an equivalent amount, which was hitherto being withdrawn from General Reserves, has been withdrawn from Revaluation Reserve. This has no impact on profit for the period.

4. During the quarter the Company has appropriated an amount of Rs 12,8500 millions from the Profit and Loss Account to the General Reserve.

5. During the quarter Reliance Industries (Middle East) DMMC, Relene Petrochemicals Limited, Reliance Capital Ventures Limited, Reliance Communication Ventures Limited, Global Fuel Management Services Limited, Reliance Energy Ventures Limited, Reliance Power Limited, Reliance Patalganga Power Limited, Reliance Thermal Energy Limited, Hirma Power Limited and Jayamkondam Power Limited have become subsidiaries of the Company.

6. Provision for Current Tax includes, provision for Fringe Benefit Tax of Rs 70 millions (US$ 2 million) for the quarter and Rs 120 millions (US $ 3 million) for the half year. (Previous Year Rs NIL)

7. There were no investors' complaints pending as on July 1, 2005. All the 2,983 complaints received during the quarter were resolved and no complaints were outstanding as on 30th September 2005.

8. The statutory auditors of the Company have carried out a Limited Review of the results for half-year ended 30th September 2005.

9. The above results were reviewed by the Audit Committee. The Board of Directors at its meeting held on 27th October 2005 approved the above results and its release.

Notes to Segment Information for the half-year ended 30th September 2005:

1. As per Accounting Standard 17 on Segment Reporting (AS 17), the Company has reported segments information as described below:

a) The petrochemicals segment includes production and marketing operations of petrochemical products namely, High and Low density Polyethylene, Polypropylene, Polyvinyl Chloride, Polyester Yarn, Polyester Fibres, Purified Terephthalic Acid, Paraxylene, Ethylene Glycol, Olefins, Aromatics, Linear Alkyl Benzene and Polyethylene Terephthalate.

b) The refining segment includes production and marketing operations of the petroleum refinery.

c) The businesses, conducted mainly through investment in associates and smaller business segments not separately reportable have been grouped under the 'others' segment. This comprises of the following:

• Oil and Gas
• Textile
• Communication
• Power
• Finance and Risk management

d) Capital employed on other Investments and income from the same are considered under "un-allocable"

2. The segment results for the year ended 31st March 2005 are on a consolidated basis.

To View the Media Release in PDF Format

31-Oct-2005

Reliance made purchases of Iraqi crude oil suppliers at prevailing international prices

Mumbai, October 31, 2005: Some recent media reports about the Volcker's Report on the Iraqi Oil-For-Food Programme have made a reference to Reliance Industries Limited

The company would like to make it abundantly clear that it purchased Iraqi crude oil from suppliers, pursuant to UN approved contracts under "Oil for Food Programme", for use in its refinery.

Reliance Industries categorically states that the company made all purchases of Iraqi crude oil suppliers at the prevailing international prices.

Apart from payment at prevailing price of crude oil, no other payments were involved in these purchases. The Volcker Committee report has clearly brought out these facts.

Reliance Industries Limited

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs 73,1640 millions (US$ 16.7 billion), cash profit of Rs 12,0870 millions (US$ 2.8 billion), net profit of Rs 7,5720 millions (US$ 1.7 billion), net worth of Rs 40,4030 millions (US$ 9.2 billion) and total assets of Rs 80,5860 millions (US$ 18.4 billion).

RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.

RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart and as India's 'Most Admired Company' in a Business Barons - TNS Mode Opinion Poll.

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.44.06
UK Pound	1	Rs.86.34
Euro	1	Rs.57.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--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
TOTAL		54

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		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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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