MIRA INFORM REPORT

Report Date :

23.12.2011

IDENTIFICATION DETAILS

Name :	REDIFF. COM INDIA LIMITED (w.e.f. 15.02.2000)
Formerly Known As :	REDIFF COMMUNICATION PRIVATE LIMITED
Registered Office :	1^st Floor, Mahalaxmi Engineering Estate, L. J. First Cross Road, Mahim (West), Mumbai – 400 016, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.01.1996
Com. Reg. No.:	11-96077
Capital Investment / Paid-up Capital :	Rs.73.079 Millions
CIN No.: [Company Identification No.]	U22100MH1996PLC096077
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Online Advertising and Fee Based Services.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 12000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company in providing online advertising and fee based services. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Mr. Ramawatar Taparia
Designation :	Senior Manager in Finance
Contact No.:	91-9920845128
Date :	21.12.2011

LOCATIONS

Registered / Head Office :	1^st Floor, Mahalaxmi Engineering Estate, L. J. First Cross Road, Mahim (West), Mumbai – 400 016, Maharashtra, India
Tel. No.:	91-22-24449144 / 61820000
Mobile No.:	91-9920845128 (Mr. Ramawatar Taparia)
Fax No.:	91-22-24455346
E-Mail :	ramawatart@rediff.co.in jyotid@rediff.co.in
Website :	http://www.rediff.com
Area :	18000 sq. ft.
Location :	Leased
Overseas Office:	US Office India Abroad Publications, Inc, 42, Broadway, Suite # 1836, New York-10004, USA
Tel. No.:	+1-212-929-1727
Fax No.:	+1-212-627-9503
Sales Office:	Located At · New Delhi · Bangalore

DIRECTORS

As on 16.09.2011

Name :	Mr. Ajit T. Balakrishanan
Designation :	Chairman and Managing Director
Address :	801, Bakhtawar, Opposite Colaba Post Office, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	22.07.1948
Qualification :	BSC (Phy), PGDM
Date of Appointment :	09.01.1996
DIN No.:	00073814

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74300MH1973PTC016646	Rediffusion Holdings Private Limited	Director	02-07-73	02-07-73	-	Active	NO
2	U25200MH1979PTC021684	Klaas Equipment Private Limited	Director	19-09-79	19-09-79	05-08-09	Strike off	NO
3	U74300MH1987PTC044227	Rediffusion Dentsu Young And Rubicam Private Limited	Director	16-03-93	16-03-93	-	Active	NO
4	U22100MH1996PLC096077	Rediff. Com India Limited	Managing director	23-08-08	09-01-96	-	Active	NO
5	U72200MH2000PTC128207	Quintrol Technologies Private Limited	Director	11-08-00	11-08-00	-	Active	NO
6	U74999MH1979PTC021182	Ajit Balakrishnan Estates And Securities Private Limited	Director	24-04-02	24-04-02	-	Active	NO
7	U72900MH2007PTC168009	Vubites India Private Limited	Director	20-02-07	20-02-07	26-11-10	Active	NO
8	U74120MH2007NPL168353	Ajit Balakrishnan Foundation	Director	05-03-07	05-03-07	-	Active	NO
9	U74120DL2008NPL182363	Data Security Council of India	Director	28-08-09	06-08-09	-	Active	NO

Name :	Mr. Arun Nanda
Designation :	Director
Address :	Row House No.11, Grand Paradi, 572, Dadyseth Hill Augustkranti Marg, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	20.08.1943
Qualification :	Bcom, PGDM
Date of Appointment :	09.01.1996
DIN No.:	00034744

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74300MH1973PTC016646	Rediffusion Holdings Private Limited	Director	02-07-73	02-07-73	-	Active	NO
2	U25200MH1979PTC021684	Klaas Equipment Private Limited	Director	19-09-79	19-09-79	05-08-09	Strike off	NO
3	U74300MH1987PTC044227	Rediffusion Dentsu Young And Rubicam Private Limited	Managing director	16-03-93	16-03-93	-	Active	NO
4	U22100MH1996PLC096077	Rediff. Com India Limited	Director	09-01-96	09-01-96	-	Active	NO
5	U74999MH1997PTC106427	Arion Horse Company Private Limited	Director	01-04-97	01-04-97	-	Active	NO
6	U74300MH1998PTC115834	Wunderman India Private Limited	Director	17-07-98	17-07-98	-	Active	NO
7	U74300MH1996PTC098864	Everest Brand Solutions Private Limited	Director	23-12-02	23-12-02	-	Active	NO
8	U92110MH2003PTC142309	Showdiff Worldwide Private Limited	Director	22-09-03	22-09-03	-	Active	NO
9	L31402WB1934PLC007993	Eveready Industries India Limited	Director	22-03-05	22-03-05	-	Active	NO
10	L24110MH1956PLC010806	Clariant Chemicals (India) Limited	Director	24-03-06	24-03-06	-	Active	NO
11	U62100KA2004PLC034399	Kingfisher Training And Aviation Services Limited	Director	30-09-06	14-06-06	15-10-08	Active	NO
12	L74140GJ1982PLC005215	Mastek Limited	Director	05-10-07	12-10-06	25-07-11	Active	NO
13	L85110KA1995PLC018045	Kingfisher Airlines Limited	Director	26-12-08	15-10-08	05-09-11	Active	NO
14	L55101TN1970PLC005897	Oriental Hotels Limited	Director	23-07-09	17-10-08	-	Active	NO

Name :	Mr. Sunil N. Phatarphekar
Designation :	Director
Address :	6-W, Navroze Apartment, 35 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	02.10.1963
Qualification :	Bcom, LLB
Date of Appointment :	26.02.1998
DIN No.:	00005164

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U22100MH1996PLC096077	Rediff. Com India Limited	Director	26-02-98	26-02-98	-	Active	NO
2	U72200MH2000PTC128207	Quintrol Technologies Private Limited	Director	21-05-01	21-05-01	-	Active	NO
3	U74999MH1979PTC021182	Ajit Balakrishnan Estates And Securities Private Limited	Director	24-04-02	24-04-02	-	Active	NO
4	U74300MH1987PTC044227	Rediffusion Dentsu Young And Rubicam Private Limited	Director	21-01-04	21-01-04	-	Active	NO
5	U01119PN1983PLC133199	Premium Transmission Limited	Director	08-06-04	08-06-04	-	Active	NO
6	U74300MH1998PTC115834	Wunderman India Private Limited	Director	14-12-05	14-12-05	-	Active	NO
7	U74300MH1996PTC098864	Everest Brand Solutions Private Limited	Director	14-12-05	14-12-05	-	Active	NO
8	U74300MH2002PTC137235	Sudler and Hennessey Private Limited	Director	14-12-05	14-12-05	19-03-09	Active	NO
9	U74120MH2007NPL168353	Ajit Balakrishnan Foundation	Director	05-03-07	05-03-07	-	Active	NO
10	U67100MH2007PLC173779	Edelweiss Trusteeship Company Limited	Director	06-06-08	30-10-07	-	Active	NO

Name :	Mr. Ashok Narasimhan
Designation :	Director
Address :	No.135051 Burke Road, LOS Altos Hill, CA 94022 US, USA
Date of Birth/Age :	14.04.1947
Qualification :	BSC (Phy), PGDM
Date of Appointment :	25.06.2002
DIN No.:	00981944

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72100DL1999PTC102150	Geine Technologies India Private Limited	Director	20-09-00	20-09-00	-	Active	YES
2	U72300KA2000PTC027842	Tarang Software Technologies Private Limited	Director	25-11-00	25-11-00	-	Active	NO
3	U99999MH1999PTC123358	Avendus Capital Private Limited	Director	19-02-01	19-02-01	30-03-09	Active	NO
4	U64202KA2001PTC029320	July Systems and Technologies Private Limited	Director	25-08-01	25-08-01	-	Active	NO
5	U65999KA2001PTC029924	Atma Investments And Resources Private Limited	Director	27-12-01	27-12-01	-	Active	NO
6	U22100MH1996PLC096077	Rediff. Com India Limited	Director	25-06-02	25-06-02	-	Active	NO

Name :	Mr. Sridar A Iyengar
Designation :	Director
Address :	85, Fair Oaks Lane, Atherton, USA 94027
Date of Birth/Age :	13.08.1947
Qualification :	Bcom, ICA Eng
Date of Appointment :	28.09.2004
DIN No.:	00278512

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L85110KA1981PLC013115	Infosys Limited	Director	10-04-03	10-04-03	Active	NO
2	U72200KA2002PLC030310	Infosys Bpo Limited	Director	01-06-05	17-09-04	Active	NO
3	U22100MH1996PLC096077	Rediff. Com India Limited	Director	28-09-04	28-09-04	Active	NO
4	L65190GJ1994PLC021012	Icici Bank Limited	Director	30-04-05	30-04-05	Active	NO
5	L64202KA2000PLC027860	Onmobile Global Limited	Director	24-07-06	24-07-06	Active	NO
6	U74899DL1996PLC078481	Cl Educate Limited	Director	18-01-08	17-10-07	Active	NO
7	L55101TN1996PLC036595	Mahindra Holidays and Resorts India Limited	Director	19-06-08	30-04-08	Active	NO
8	U63040MH2005PTC153232	Cleartrip Travel Services Private Limited	Director	21-09-10	28-07-10	Active	NO
9	U66010MH2000PLC127837	Icici Prudential Life Insurance Company Limited	Director	19-07-11	20-10-10	Active	NO
10	L85195AP1984PLC004507	Dr. Reddy's Laboratories Limited	Additional director	22-08-11	22-08-11	Active	NO

Name :	Mr. Rashesh Chandrakant Shah
Designation :	Director
Address :	123, Landmark, Carmichael Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	30.09.1963
Qualification :	IIFT Diploma
Date of Appointment :	26.04.2006
DIN No.:	00008322

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L99999MH1995PLC094641	Edelweiss Financial Services Limited	Managing director	01-04-08	21-11-95	-	Active	NO
2	U72900MH1999PLC121825	Icleo Com Limited	Director	20-09-99	20-09-99	-	Strike off	NO
3	U72200MH2000PLC124096	Edelweiss Insurance Brokers Limited	Director	08-02-00	08-02-00	17-12-09	Active	NO
4	U67110AP1993PLC052266	Edelweiss Securities Limited	Director	26-12-00	26-12-00	22-03-10	Active	NO
5	U22100MH1996PLC096077	Rediff. Com India Limited	Director	29-09-06	26-04-06	-	Active	NO
6	U65910MH2006PTC162818	Ivy Financial Services Private Limited	Director	23-06-06	23-06-06	-	Active	NO
7	U22219DL1981PLC012808	International Print-O-Pac Limited	Director	12-09-07	14-01-07	21-01-10	Active	NO
8	U65991MH2007PLC173409	Edelweiss Asset Management Limited	Director	23-08-07	23-08-07	06-03-09	Active	NO
9	U67100MH2007PLC173779	Edelweiss Trusteeship Company Limited	Director	16-07-09	03-09-07	-	Active	NO
10	U67100MH2007PLC174759	Edelweiss Asset Reconstruction Company Limited	Director	05-10-07	05-10-07	-	Active	NO
11	U66010MH2009PLC197336	Edelweiss Tokio Life Insurance Company Limited	Director	29-07-10	25-11-09	-	Active	NO

KEY EXECUTIVES

Name :	Mrs. Jyoti Kodu Dialani
Designation :	Company Secretary
Address :	701, Kishore Niwas, Sindhi Society, Chembur, Mumbai-400071, Maharashtra, India
Date of Birth/Age :	07.04.1973
Date of Appointment :	16.11.2004
PAN No.:	AEXPD6659R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.09.2011

Names of Shareholders	No. of Shares
Ajit Balkrishnan	1100190
Arun N. Nanda	622370
R K Sukumar	2
Shivdad Nair	2
P S Ramanarayanan	2
Rediffusion Holdings Private Limited, India	2200002
Draper India International, Mauritius	2200000
K Subharaman	2
Citicorp Finance India Limited, India	192720
Pacific Century Cyber Works India Private Limited, India	530000
Citibank Na Newyork Nyadr Department, New York	4647978
Quintrol Technologies Private Limited, India	144540
Sunil Phatarphekar	6000
Ashok Narasimhan	6000
Edelweiss Finance and Investment Limited	1523000
Rediff. Com India Limited Employee Trust, India	1015000
Arun N Nanda	622370
Total	14810178

As on 16.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	14.86
Bodies corporate	30.99
Directors or relatives of directors	15.91
Other top fifty shareholders	31.39
Others	6.85
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Online Advertising and Fee Based Services.

GENERAL INFORMATION

Customers :	End Users
No. of Employees :	300 (Approximately)
Bankers :	· Citi Bank, Fort Branch, Mumbai · HDFC Bank, Kamlamary, Mumbai

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400 018, Maharashtra, India
PAN No.:	AACFD4815A
Subsidiaries :	· Rediff Holdings Inc. · Value Communications Corporation · Vubites India Private Limited

CAPITAL STRUCTURE

As on 16.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
24000000	Equity Shares	Rs.5/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14810178	Equity Shares	Rs.5/- each	Rs.74.051 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
24000000	Equity Shares	Rs.5/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14615800	Equity Shares	Rs.5/- each	Rs.73.079 Millions

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		73.079	73.079	73.079
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3464.974	3454.447	3451.373
4] (Accumulated Losses)		(605.058)	(412.203)	(137.432)
NETWORTH		2932.995	3115.323	3387.020
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2932.995	3115.323	3387.020
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		199.055	213.158	335.495
Capital work-in-progress		47.810	33.344	63.953
INVESTMENT		626.358	654.905	639.905
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	290.545	223.608	259.418
	Cash & Bank Balances	1620.350	1991.928	2158.610
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	401.615	292.210	319.146
Total Current Assets		2312.510	2507.746	2737.174
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	119.599	98.010	114.038
	Other Current Liabilities	284.676	291.611	230.632
	Provisions	49.466	44.559	44.837
Total Current Liabilities		453.741	434.180	389.507
Net Current Assets		1858.769	2073.566	2347.667
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
OTHER ASSETS		201.003	140.350	0.000
TOTAL		2932.995	3115.323	3387.020

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	815.626	694.613	880.920
		Other Income	166.382	215.398	212.057
		TOTAL	982.008	910.011	1092.977
Less	EXPENSES
		Employee related expenses	320.041	267.385	296.013
		Administrative selling other Expenses	649.557	673.062	629.526
		TOTAL	969.598	940.447	925.539
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		12.410	(30.436)	167.438
Less	INTEREST FINANCIAL CHARGES		0.000	0.000	0.000
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		12.410	(30.436)	167.438
Less/ Add	DEPRECIATION/ AMORTISATION		158.579	233.429	307.722
Add	EXCEPTIONAL INCOME EXPENSES, NET		(46.686)	(10.470)	(365.802)
	PROFIT/(LOSS) BEFORE TAX		(192.855)	(274.335)	(506.086)
Less	TAX		0.000	0.436	2.931
	PROFIT/(LOSS) AFTER TAX		(192.855)	(274.771)	(509.017)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(137.432)	371.585
	BALANCE CARRIED TO THE B/S		(605.058)	(412.203)	(137.432)
	EARNINGS IN FOREIGN CURRENCY
		E-Commerce Services	NA	3.026	3.621
		Media, Mobile and Other Services	NA	10.887	17.189
		Interest Received on Deposits with Banks	NA	0.000	5.103
	TOTAL EARNINGS		NA	13.913	25.913
	Earnings Per Share (Rs.)		(13.19)	(18.80)	(34.83)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(19.64)	(30.19)	(46.57)
Net Profit Margin (PBT/Sales)	(%)	(23.65)	(39.49)	(57.45)
Return on Total Assets (PBT/Total Assets}	(%)	(7.68)	(10.08)	(16.47)
Return on Investment (ROI) (PBT/Networth)		(0.07)	(0.09)	(0.15)
Debt Equity Ratio (Total Liability/Networth)		0.15	0.14	0.11
Current Ratio (Current Asset/Current Liability)		5.10	5.78	7.03

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors
Creditors due small micro enterprises	0.000	0.000	0.000
Creditors due others	119.599	98.010	114.038
Total	119.599	98.010	114.038

Sr. No.	Check List by Info Agents
1.	Year of Establishment	YES
2.	Locality of the firm	YES
3.	Constitutions of the firm	YES
4.	Premises details	YES
5.	Type of Business	YES
6.	Line of Business	YES
7.	Promoter’s background	--
8.	No. of employees	YES
9.	Name of person contacted	YES
10.	Designation of contact person	YES
11.	Turnover of firm for last two years	YES
12.	Profitability for last three years	NO
13.	Reasons for variations <> 20%	--
14.	Estimation for coming financial year	NO
15.	Capital in the business	NO
16.	Details of sister concerns	--
17.	Major Suppliers	NO
18.	Major Customers	NO
19.	Payment terms	NO
20.	Export / Import details (is applicable)	--
21.	Market information	--
22.	Litigation that the firm / promoter involved in	--
23.	Banking Details	YES
24.	Banking facility details	--
25.	Conduct of the banking account	--
26.	Buyer visit details	--
27.	Financials, if provided	NO
28.	Incorporation details, if applicable	--
29.	Last accounts filed at ROC	--
30.	Major Shareholders, is available	--

FINANCIAL HIGHLIGHTS

1. Total Income :- Rs.982 million (previous year Rs.910 million).

2. Net Profit/ Loss:- After providing for depreciation and amortization of Rs.159 million and exceptional items of Rs.46 million net loss for the year were Rs.193 million (previous year net loss Rs.274 million).

TRADE REFERENCES

· Reliance Communication Limited

· Bharti – Airtel

FIXED ASSETS

· Furniture and Fittings

· Computers

· Office Equipments

· Vehicles

· Lease Hold Improvements

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.52.78
UK Pound	1	Rs.82.73
Euro	1	Rs.68.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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