MIRA INFORM REPORT

Report Date :

22.03.2007

IDENTIFICATION DETAILS

Name :	RELIANCE COMMUNICATIONS LIMITED
Registered Office :	Main Administrative Building Block GF 1, Village Meghapur – Padana Taluka Lalpur, Jamnagar, Gujarat
Country :	India
Financials (as on) :	31.12.2005
Date of Incorporation :	01.03.1994
Com. Reg. No.:	04-21441
CIN No.: [Company Identification No.]	U9999GJ1994PLC021441
TAN No.: [Tax Deduction & Collection Account No.]	MUMR16550C
PAN No.: [Permanent Account No.]	AACCR7832C
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. It is a subsidiary of Reliance Infocom Limited (now – Reliance Communication Infrastructure Limited).
Line of Business :	Provide telecommunication services.

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 550000000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a part of Anil Dhirubhai Ambani [ADAG] Group. Available information indicates high financial responsibility of the company. Trade relations are fair. The company is doing very well. Its financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Main Adminstrative Building Block GF 1, Village Meghapur – Padana Taluka Lalpur, Jamnagar, Gujarat, India
Tel. No.:	91-288-3010101
Fax No.:	rohit_shah@ril.com
E-Mail :	http://www.ril.com
Area :	2,000 sq. ft.
Location :	Owned
Administrative Office :	172/2, “Premchand House – Annexe”, Ground Floor, Opposite High Court Way Ashram Road, Ahmedabad – 380 009, Gujarat, India
Area :	5000 sq.fts
Location :	Owned
Branches :	Ø “B” Block, Dhirubhai Ambani Knowledge City, Opposite Koparkhairana Railway Station, Thane Belapur Road, Navi Mumbai, Maharashtra, India Tel No : 91-22-30373333 / 30386010 Fax No.: 91-22-30376622 Ø 2^nd Floor, Brindavan Building, Sri Ram Mills Compound, Ganpatrao Kadam Marg, Worli, Mumbai - 400 018, Maharashtra, India Tel. No. 91-22-24981163 / 67-72 Ø C-5, 3^rd Floor, Chitrakoot, Shree Ram Mills Compound, Ganpatrao Kadam Marg, Worli, Mumbai, Maharashtra, India

DIRECTORS

Name :	Mr. Mukesh Dhirubhai Ambani
Designation :	Director
Address :	Sea Wind 39 Cuffe Parade Mumbai – 400 005, Maharashtra, India
Date of Birth/Age :	19/04/1957
Qualification :	CH/MD
Name :	Mr. Manoj H. Modi
Designation :	Director
Address :	Flat No 7, Best Apts, Walkeshwar Mumbai, Maharashtra, India
Date of Birth/Age :	03/07/1957
Name :	Mr. Anand Jaikumar Jain
Designation :	Director
Address :	A-13, Sterling Apts, Walkeshwar Mumbai, Maharashtra, India
Date of Birth/Age :	14/01/1957
Name :	Mr. Bharat Shymsundar Goenka
Designation :	Director
Address :	Shree Thakur Nivas 580, 2^nd Cross, 12^th Main, 4^th Block Koramangala
Date of Birth/Age :	19/08/1961
Name :	Mr. Ramesh Nasrinivasn
Designation :	Director
Address :	C-3, Navageeta CHS Street, Anthony Road, Chembur Mumbai, Maharashtra, India
Date of Birth/Age :	29/04/1957
Name :	Mr. Chhannalal Shah
Designation :	Director
Address :	B, 901/902 Shankar Park, Opp. Suman Apts. Shanker Lane Kandivali (West), 501, Siddarth Apartment, Mumbai, Maharashtra, India
Date of Birth/Age :	14/09/1972
Name :	Mr. Gautam Doshi
Designation :	Additional Director
Name :	Mr. Anil D. Ambani
Designation :	Chairman
Name :	Mr. Deepak Shourie
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Individuals / Hindu Undivided Family	9845089	0.49
Bodies Corporate	1354976371	67.83
Mutual Funds / UTI	43413510	2.17
Financial Institutions / Banks	1737111	0.09
Central Government / State Governments	1073815	0.05
Insurance Companies	85189421	4.26
Foreign Institutional Investors	228588773	11.44
Bodies Corporate	45632524	2.28
Individual shareholders holding nominal share capital up to Rs. 0.100 million	182371001	9.13
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	22283541	1.12
NRIs/OCBs	22405426	1.12
Pending confirmation	80214	0.00
Shares held by Custodians and against which depository receipts have been issued	47018194	0.00

BUSINESS DETAILS

Line of Business :

Provide telecommunication services.

GENERAL INFORMATION

No. of Employees :	57
Bankers :	Not Available
Facilities :	--

Banking Relations :	Unknown
Auditors :
Name :	Chaturvedi and Shah Chartered Accountants
Address :	712/713, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22308500
Fax No.:	91-22-22872703/22846585
Memberships :	Nil
Collaborators :	Nil
Parent Company :	Reliance Industries Limited Reliance Infocom Limited (Now Reliance Communications Infrastucture Limited) “Brindavan” 2^nd Floor, Shree Ram Mills Premises, Ganpatrao Kadam Marg, Worli, Mumbai – 400 018, Maharashtra, India Tel. 91-22-24916000 Fax. 91-22-24916112
Associates/Subsidiaries :	Reliance Petroleum Limited Reliance Telecom Limited Reliance Leasures Private Limited Reliance World Traders Private Limited Reliance Strategic Investment Private Limited Reliance Agrotech Private Limited Reliance Entertainment Private Limited Reliance Energy and Project Development Private Limited Reliance Hydrocarbon and Investment Private Limited Reliance Consolidated Enterprises Private Limited Reliance Paging Private Limited Reliance Global Management Services Private Limited Reliance Detective and Security Consultancy Services Private Limited The group is mainly busy in with the proposed scheme of amalgamation of :- Reliance Petroleum Limited with Reliance Industries Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000000	Equity Shares	Rs. 1/- each	Rs. 10000.000 millions
30000000000	Preferences Shares	Rs. 10/- each	Rs. 30000.000 millions
	TOTAL		Rs. 40000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 1/- each	Rs. 0.500 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2005 [9 Months]	31.03.2005 [12 Months]	31.03.2004 [12 Months]
SHAREHOLDERS FUNDS
1] Share Capital		0.500	0.100	59.759
3] Reserves & Surplus		147834.300	0.000	1109.975
4] (Accumulated Losses)		0.000	0.000	(39.030)
NETWORTH		147834.800	0.100	1130.704
LOAN FUNDS
1] Secured Loans		0.000	0.000	244.236
2] Unsecured Loans		0.000	0.000	0.00
TOTAL BORROWING		0.000	0.000	244.236
TOTAL		147834.800	0.100	1374.940
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1662.400	0.000	1063.133
Capital work-in-progress		0.000	0.000	122.586
INVESTMENT		120741.000	0.000	1.019
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	2.805
	Sundry Debtors	0.000	0.000	83.786
	Cash & Bank Balances	0.500	0.100	1.736
	Loans & Advances	31589.100	0.000	373.899
Total Current Assets		31589.600	0.100	462.226
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	6132.500	0.000	272.907
	Provisions	25.700	0.000	1.453
Total Current Liabilities		6158.200	0.000	274.360
Net Current Assets		25431.400	0.100	187.866
MISCELLANEOUS EXPENSES		0.000	0.000	0.336
TOTAL		147834.800	0.100	1374.940

PROFIT & LOSS ACCOUNT

PARTICULARS	31.12.2005 [21 Months]	31.03.2004 [12 Months]
Sales Turnover [including other income]	132.600	270.696
Profit/(Loss) Before Tax	88.500	(39.030)
Provision for Taxation	32.000	0.000
Profit/(Loss) After Tax	56.500	(39.030)
Total Expenditure	44.100	74.214

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	31.03.2006 [1^st Qtr.]	30.06.2006 [2^nd Qtr.]	30.09.2006 [3^rd Qtr.]	31.12.2006 [4^th Qtr.]
Sales Turnover	620.700	229.900	28231.900	30434.500
Other Income	4.900	1.500	154.200	10.600
Total Income	625.600	231.400	28386.100	30445.100
Total Expenditure	199.000	74.100	17788.400	17815.800
Operating Profit	426.600	157.300	10597.700	12629.300
Interest	246.900	0.000	755.900	620.100
Gross Profit	179.700	157.300	9841.800	12009.200
Depreciation	20.200	20.500	4909.400	4268.600
Tax	2.700	50.100	[32.800]	30.000
Reported PAT	151.700	84.500	4965.200	7710.600

2006-03 Quarter 1

Net Sales Includes Interest Rs 572.20 million Rent Income Rs 48.50 million Expenditure Includes Staff Cost Rs 5.10 million Advertisement Expenses Rs 145.60 million Postage Expenses Rs 31.40 million Operating, general & other administration expenses Rs 16.90 million Tax Includes Provision for Current Tax Rs 2.70 million Deferred Tax Rs 5.10 million.

2006-06 Quarter 2

Net Sales Includes Interest Rs 91.00 million Rent Income Rs 46.90 million Profit on sale investment Rs 92.00 million Expenditure Includes Staff Cost Rs 2.30 million Postage Expenses Rs 20.70 million Operating, general & other administration expenses Rs 51.10 million Tax Includes Provision for Current Tax Rs 50.10 million Deferred Tax Rs 2.20 million.

2006-09 Quarter 3

Net sales indicate Income from Services Expenditure Includes Access charges Rs 6286.00 million License Fees Rs 2339.30 million Network Expenses Rs 2410.30 million Staff Cost Rs 1735.00 million Sales and Marketing expenses Rs 3339.70 million General Administration expenses Rs 1528.10 million.

200612 Quarter 4

Net sales indicate Income from Services Expenditure Includes Access charges Rs 6611.10 million License Fees Rs 2362.50 million Network Expenses Rs 1594.90 million Staff Cost Rs 1625.70 million Sales and Marketing expenses Rs 3625.20 million General Administration expenses Rs 1846.40 million.

KEY RATIOS

PARTICULARS		31.12.2005 [9 Months]	31.03.2005 [12 Months]	31.03.2004 [12 Months]
PAT / Total Income	(%)	42.60	N.A.	(14.418)
Net Profit Margin (PBT/Sales)	(%)	66.74	N.A.	(14.418)
Return on Total Assets (PBT/Total Assets}	(%)	0.26	N.A.	(2.366)
Return on Investment (ROI) (PBT/Networth)		0.00	N.A.	(0.034)
Debt Equity Ratio (Total Liability/Networth)		0.04	0.00	0.458
Current Ratio (Current Asset/Current Liability)		5.12	0.00	1.684

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Reliance Communication Ventures Limited was originally incorporated in the year 2004 as Reliance Infrastructure Developers Private Limited. The company was converted into public limited on 25.07.2005. The company is engaged in Telecommunication consequent of the scheme of arrangement with Reliance Industries Limited and the company is vested with the Telecommunication Undertaking of RIL as defined in the scheme.

Reliance Communications Limited (the "Telecommunication Resulting Company") was originally incorporated on July 15, 2004, under the Companies Act, 1956 as Reliance Infrastructure Developers Private Limited. The status of the company changed from private limited to public limited on July 25, 2005. Further the name of the company changed to Reliance Communication Ventures Limited with effect from August 3, 2005. The name has since been changed to its present name, viz. Reliance Communications Limited, under Fresh Certificate of Incorporation consequent on change of name dated June 7, 2006.

In terms of the Scheme of Arrangement ("Scheme") with Reliance Industries Limited, as sanctioned by the Hon'ble High Court of Judicature at Bombay by its Order dated December 9, 2005 and which has become effective from December 21, 2005 the company is vested with the Telecommunication Undertaking of Reliance Industries Limited as defined in the Scheme.

Subject is a part of the Reliance Group of companies

FINANCIAL YEAR

The current financial year of the company was changed to a period of nine months beginning from April 1, 2005 and ending on December 31, 2005. Previous financial year of the Company was for a period beginning from July 15, 2004 that is the date of incorporation and ending on 31^st March, 2005. 

SCHEME OF ARRANGEMENT WITH RELIANCE INDUSTRIES LIMITED

The Hon'ble High Court of Judicature at Bombay by its Order dated December 9, 2005 had approved the Scheme of Arrangement under Section 391 to 394 of the Companies Act, 1956 (the 'Scheme') for acquisition of the Financial Services Undertaking of Reliance Industries Limited (RIL) by the Company. The Scheme has become effective from December 21, 2005 and the appointed date under the Scheme was September 1, 2005. 

In terms of the Scheme 1223130422 Equity Shares of the company will be allotted in the ration of 1(one) equity share of the face value of Rs.5/- (Rupees Five) each credited as fully paid-up for every 1(one) equity share of Rs.10/- (Rupees Ten) each fully paid-up held by members of RIL (except to the Specified Shareholders as defined in Clause 1.37 of the Scheme) on the Record Date i.e. January 25, 2006. 

Equity shares of the company so issued shall be listed and admitted for trading on the Bombay Stock Exchange Limited ('BSE') and the national Stock Exchange of India Limited ('NSE'). 

CHANGE OF NAME

The name of the company was changed from Reliance Infrastructure Developers Private Limited to Reliance Infrastructure Developers Limited with effect from July 25, 2005. The name was further changed from Reliance Infrastructure Developers Limited to Reliance Capital Ventures Limited with effect from August 3, 2005. 

CHANGE IN THE OBJECTS CLAUSE OF THE COMPANY

During the period under report, the objects clause of the Memorandum of Association was altered to carry on the business of telecommunication, infrastructure, telecommunication on system telecommunication network and telecommunication services. 

PROMOTER GROUP COMPANIES

Pursuant to an intimation from Reliance Consolidated Enterprises Private Limited, Promoter of Reliance Industries Limited (RIL), their name as also names of other promoters of RIL have been disclosed as 'group' within the definition of 'group' as defined in the Monopolies and Restrictive Trade Practices ('MRTP') Act, 1969 in the Annual Report of the Company. 

FIXED ASSETS

• Building
• Plant and Machinery
• Freehold Land
• Lease Hold Land
• Telecomlincene

AS PER WEBSITE

Reliance - India's largest business house

The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business house with total revenues of over Rs 990000 millions (US$ 22.6 billion), cash profit of Rs 125000 millions (US$ 2.8 billion), net profit of Rs 62000 millions (US$ 1.4 billion) and exports of Rs 159000 millions (US$ 3.6 billion).

The Group's activities span exploration and production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power, telecom and infocom initiatives. The Group exports its products to more than 100 countries the world over. Reliance emerged as India's Most Admired Business House, for the third successive year in a TNS Mode survey for 2003.

Reliance Group revenue is equivalent to about 3.5% of India's GDP. The Group contributes nearly 10% of the country's indirect tax revenues and over 6% of India's exports. Reliance is trusted by an investor family of over 3.1 million - India's largest.

Reliance Industries Limited - India's largest private sector company

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with gross turnover of Rs 744180 millions (US$ 17 billion), cash profit of Rs 91970 millions (US$ 2.1 billion), net profit of Rs 51600 millions (US$ 1.2 billion), net worth of Rs 344520 millions (US$ 7.9 billion) and total assets of Rs 711570 millions (US$ 16.3 billion).

RIL emerged as the only Indian company in the list of global companies that create most value for their shareholders, published by Financial Times based on a global survey and research conducted by PricewaterhouseCoopers in 2004. RIL 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. The company emerged 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart in 2004.

RIL alone accounts for:

• 17 per cent of the total profits of the private sector in India
• 7 per cent of the profits of the entire corporate sector in India
• 6 per cent of the total market capitalisation in India
• Weightage of 13 per cent in the BSE Sensex
• Weightage of 10 per cent in the Nifty Index

One out of every four investors in India is a Reliance shareholder.

With globally competitive capital and operating cost positions, Reliance Group dominates the rapidly growing Indian market deriving over 80% of its revenues from the domestic market.

Chairman’s Profile

Regarded as one of the foremost corporate leaders of contemporary India, Anil Dhirubhai Ambani is the Chairman of all listed Group companies, namely: Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Limited.

Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company's management over the next 22 years.

He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country's first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

He is a member of:

Wharton Board of Overseers, The Wharton School, USA

Central Advisory Committee, Central Electricity Regulatory Commission

Board of Governors, Indian Institute of Management, Ahmedabad

Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of India's Parliament a position he chose to resign voluntarily on March 25, 2006.

Awards and Achievements

• Conferred the 'CEO of the Year 2004' in the Platts Global Energy Awards
• Rated as one of 'India's Most Admired CEOs' for the sixth consecutive year in the Business Barons – TNS Mode opinion poll, 2004
• Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management Association, October 2002
• Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001
• Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in Business and Finance' and was introduced as the only 'new hero' in Business and Finance from India, June 1999

Media Release

Reliance Communication Ventures Limited

Name Changed To

Reliance Communications Limited

Mumbai, June 07, 2006 : Consequent to issue of new certificate of incorporation for change of name by Registrar of Companies, Maharashtra, Mumbai on 7^th June, 2006 the name of Reliance Communication Ventures Limited stands changed to Reliance Communications Limited.

The new name will transform the company into a fully integrated communication business provider. After effectuation of Scheme of Amalgamation and Arrangement, the company will offer services that span the entire information and communication value chain including wireline and wireless, voice, data, broadband, internet, value added services and international and domestic long distance services. The new name, Reliance Communications Limited, enables the company to more accurately reflect its business.

About Reliance Communications :

Reliance Communications, a member of Reliance Anil Dhirubhai Ambani Group, is India’s foremost integrated telecommunications company with close to 21.5 million Indian and 500,000 global individual consumers. Reliance Communications corporate clientele includes 600 Indian and 250 multinational corporations, and – through subsidiary FLAG Telecom – over 200 global carriers.

The company has as pan- India, next generation, integrated [wireless and wireline], convergent [voice, data and video] digital network that is capable of supporting best-of-class services spanning the entire communications value chain.

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.43.70
UK Pound	1	Rs.85.90
Euro	1	Rs.58.25

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	YES
--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 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	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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