MIRA INFORM REPORT

Report Date :

20.07.2011

IDENTIFICATION DETAILS

Name :	RELIANCE COMMUNICATIONS INFRASTRUCTURE LIMITED (w.e.f. 7.03.2002)
Formerly Known as :	SUKHKARTA FINTRADE PRIVATE LIMITED
Registered Office :	H Block, 1^st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai – 400 710, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	17.07.1997
Com. Reg. No.:	11-166329
Capital Investment / Paid-up Capital :	Rs.2010.200 millions
CIN No.: [Company Identification No.]	U64203MH1997PLC166329
TAN No.: [Tax Deduction & Collection Account No.]	DELR10472A
PAN No.: [Permanent Account No.]	AAVVS2157H
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Promoters of Industrial Finance, Order Suppliers, Importers, Exporters, Merchants, Stockiest, Buyers, Sellers, Agents, Brokers, Commission Agents and Dealers.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 120000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

Management Non cooperative

LOCATIONS

Registered Office :	H Block, 1^st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai – 400 710, Maharashtra, India
Tel. No.:	91-22-30386286
Fax No.:	91-22-30376622
Email :	chawda@relianceada.com tulsi.dadlani@relianceada.com hitesh.marthak@relianceada.com
Website :	http://www.relianceda.com
Corporate Office:	“Brindavan”, 2^nd Floor, Shree Ram Mils Premises, Ganpatrao Kadam Marg, Worli, Mumbai - 400013, Maharashtra, India
Branches :	Located at :- · Mumbai · Bangalore

DIRECTORS

As on 30.09.2010

Name :	Mr. Hasit Navinchandra Shukla
Designation :	Director
Address :	403, Sabita Co-operative Housing Society Limited, plot No. 596, Cts F/38, 16^th Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	28.08.1962
Date of Appointment :	13.08.2010
Name :	Mr. Suresh M. Rangachar
Designation :	Director
Address :	37, Gulistan Apartment, 9, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	14.05.1964
Date of Appointment :	13.08.2010
Name :	Mr. Gautam Bhailal Doshi
Designation :	Director
Address :	B-131, Grand Paradi, August Kranti Marg, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	23.12.1952
Date of Appointment :	26.06.2005

KEY EXECUTIVES

Name :	Mr. Hitesh Lalitbhai Marthak
Designation :	Company Secretary and Manager
Address :	Flat F 604 (Daisy), Jalvayu Vihar, Phase – 1, Sector – 20, Kharghar, Navimumbai – 410210, Maharashtra, India
Date of Birth/Age :	25.10.1975
Date of Appointment :	01.08.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Satish Seth Jointly with Reliance Communications Limited, India	1
Amitabh T Jhunjhunwala Jointly with Reliance Communications Limited, India	1
Gautam Doshi Jointly with Reliance Communications Limited, India	1
Ramesh Shenoy Jointly with Reliance Communications Limited, India	1
Hasit Shukla Jointly with Reliance Communications Limited, India	1
Surendra Pipara Jointly with Reliance Communications Limited, India	1
Reliance Communications Limited, India	2009999994
Total	2010000000

Names of Shareholders	No. of Shares (Preference Shares)
Reliance Communications Limited, India	20000
Total	20000

Equity Share break up:

(As on 30.09.2010)

Category	Percentage
Bodies corporate (not mentioned above)	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Promoters of Industrial Finance, Order Suppliers, Importers, Exporters, Merchants, Stockiest, Buyers, Sellers, Agents, Brokers, Commission Agents and Dealers.

Products :

Product Description	ITC Code
Communication Devices Accessories	851711
Integrated Data Centre	--
Provision of Infrastructure	--
Internet Service Provider	--

GENERAL INFORMATION

No. of Employees :

300 (Approximately)

Bankers :

Axis Bank Limited, Central Office, Maker, Towers – F, 13^th Floor, Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India

Facilities :

Unsecured loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Long Term Loans
From Holding Company	11850.000	0.000
Short Term Loans
From Banks in Foreign Currencies – Buyer’s Credit	5770.100	5288.600
From Holding Company	4019.900	15974.400
From Body Corporate	1000.000	0.000
Total	22640.000	21263.000

Banking Relations :	--
Financial Institution:	Axis Trustee Services Limited, Maker, Towers – F, 13^th Floor, Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India
Auditors :
Name :	Chaturvedi and Shah Chartered Accountant
Address :	912-913, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400710, Maharashtra, India
Joint Venture :	Alcatel Lucent Managed Solutions India Private Limited
Associates :	· Reliance Group · Reliance Industries Limited · Reliance Petrochemicals Limited · Reliance Infoinvestments Private Limited · Reliance Petroinvestments Private Limited · And several Reliance Group Companies
Subsidiaries :	· Reliance Mobile Limited CIN No.: U32100GJ1992PLC018052 · Reliance Infratel Limited CIN No.: U72900MH2001PLC131598 · Matrix Innovations Limited CIN No.: U99999MH2000PLC125991 · Netizen Rajasthan Limited CIN No.: U74140MH2000PLC128387 · Reliance Communications Investments and Leasing Limited CIN No. : U64201MH2001PLC131600 · Reliance Communications West Bengal Private Limited · Reliance Communications Haryana Private Limited · Reliance Communications Maharashtra Private Limited · Reliance Communications Tamilnadu Private Limited · Reliance Broadcom Private Limited
Fellow Subsidiaries :	· Reliance Webstores Limited · Gateway Systems (India) Limited · Reliance Communications International Inc. · Reliance Communications Inc. · Reliance Communications Hongkong Limited · Netizen Maharashtra Private Limited · Flag Telecom Group Limited and its Subsidiaries · Reliance Telecom Limited · Reliable Internet Services Limited · Campion Properties Limited · Gateway Net Trading Private. Limited Singapore · Reliance Capital Limited · Reliance Global Com Limited
Holding Company :	Reliance Communications Limited CIN No. : L45309MH2004PLC147531
Ultimate Holding Company:	· Reliance Innoventures Private Limited · AAA Communications Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2400000000	Equity Shares	Rs.1/- each	Rs.2400.000 Millions
10000000	Preference Shares	Rs.10/- each	Rs.100.000 millions
	Total		Rs.2500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2010000000	Equity Shares	Re.1/- each	Rs.2010.000 Millions
20000	Preference Shares	Rs.10/- each	Rs.0.200 million
	Total		Rs.2010.200 millions

Note:

All shares are held by Reliance Communication Limited, the Holding company and its nominees

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		2010.200	2010.200	2000.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27006.900	27482.300	20462.000
4] (Accumulated Losses)		0.000	0.000	(8.400)
NETWORTH		29017.100	29492.500	22453.800
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		22640.000	21263.000	26600.800
TOTAL BORROWING		22640.000	21263.000	26600.800
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		51657.100	50755.500	49054.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10171.200	10350.200	6005.700
Capital work-in-progress		26651.200	8939.600	13221.500
INVESTMENT		3257.300	3253.500	70254.600
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1121.100	1418.900	1336.500
	Sundry Debtors	8552.400	14076.400	5251.000
	Cash & Bank Balances	1476.400	2254.400	1774.800
	Other Current Assets	2168.100	0.900	5597.700
	Loans & Advances	37591.100	49103.800	44686.400
Total Current Assets		50909.100	66854.400	58646.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25967.000	22782.300	10201.800
	Other Current Liabilities	10534.300	14590.100	87578.600
	Provisions	2830.400	1269.800	1293.200
Total Current Liabilities		39331.700	38642.200	99073.600
Net Current Assets		11577.400	28212.200	(40427.200)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		51657.100	50755.500	49054.600

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2010	31.03.2009	31.03.2008
	SALES
			Income	44170.700	40952.500	31525.600
			Other Income	18.200	7.800	4701.300
			TOTAL (A)	44188.900	40960.300	36226.900
Less	EXPENSES
			Network Operation Expenses	12166.600	9057.100	6935.200
			Payments to and Provision for Employees	1205.800	1412.800	91.400
			Sales and Distribution Expenses	16226.500	10120.700	7562.400
			General and Administration Expenses	1126.900	1639.100	35.600
			Loss on Sale of Fixed Assets	0.000	11797.600	18527.600
			Loss on assignment of Advances	9500.000	0.000	0.000
			TOTAL (B)	40225.800	34027.300	33152.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			3963.100	6933.000	3074.700
Less	FINANCIAL EXPENSES (D)			(2325.100)	1790.200	(7167.400)
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			6288.200	5142.800	10242.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)			4630.800	2476.900	2797.400
	PROFIT BEFORE ADJUSTMENTS PURSUANT TO THE SCHEME OF ARRANGEMENT			1657.400	2665.900	7444.700
Add	Adjustments pursuant to the scheme of arrangement			0.000	3770.000	0.000
Add	Exchange Loss on Loans and Liabilities			0.000	1823.000	0.000
Less	Equivalent Amount withdrawn from General Reserve			0.000	5593.000	0.000
	PROFIT BEFORE TAX (E-F) (G)			1657.400	2665.900	7444.700
Less	TAX (I)			1562.500	4.100	1232.100
	PROFIT AFTER TAX (G-I) (J)			94.900	2661.800	6212.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			2653.400	(8.400)	(11284.400)
Less	ADJUSTMENT ON ACCOUNT OF THE SCHEME OF AMALGAMATION / DEMERGER			0.000	0.000	(5063.400)
	BALANCE CARRIED TO THE B/S			2748.300	2653.400	(8.400)
	EARNINGS IN FOREIGN CURRENCY			3219.700	6936.100	1559.500
	IMPORTS
		Capital Goods		1470.600	6748.700	3440.500
		Traded Goods		246.600	482.500	3920.400
	TOTAL IMPORTS			1717.200	7231.200	7360.900
	Earnings Per Share (Rs.)			0.05	1.33	3.11

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.21	6.50	17.15
Net Profit Margin (PBT/Sales)	(%)	3.75	6.51	23.61
Return on Total Assets (PBT/Total Assets}	(%)	2.71	3.45	11.52
Return on Investment (ROI) (PBT/Networth)		0.06	0.09	0.33
Debt Equity Ratio (Total Liability/Networth)		2.13	2.03	5.60
Current Ratio (Current Asset/Current Liability)		1.29	1.73	0.59

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Micro Small and Medium Enterprises	189.800	151.800	115.000
Others	25777.200	22630.500	10086.800
Total	25967.000	22782.300	10201.800

Note:

Registered office of the company has been shifted from Reliance House, Near Maradia Plaza, off. C G Road, Ahmedabad- 380 006, Gujarat, India to the present address w.e.f.04.12.2006

OPERATIONS:-

The Company provides Internet Data Centre (IDC) services from its IDCs located at Mumbai, Bangalore, Hyderabad and Chennai. During the year two new IDX, viz., Chennai and Hyderabad got commissioned. The IDCs currently have a capacity of 405,000 sq. ft. The Company is a market leader within the space having an estimated market share of close to 60%.

The Company’s Enterprise Broadband segment continued to maintain its growth path and gained significantly during the year even in the midst of aggressive competition in the data and voice segments, and especially in the internet bandwidth segment, from many other telecom service providers. Of a current portfolio of more than 41 products, their Enterprise Broadband business has not only positioned larger number of products within the top corporate but also increased its share of wallet.

Broadband’s Business IT Systems are ISO 27001:2005 Certified (an Information Security Management System Standard).

HISTORY

Subject was incorporated on 17^th July, 1997 at Mumbai in Maharashtra under the name and style of Sukhakarta Fintrade Private Limited having Company Registration Number 109474. The name of the company was changed to Macronet Private Limited with effect from 15.02.1999. Further, the name of the company was changed to Reliance Infocom Private Limited with effect from 3^rd November, 2000 and subsequently it became a public limited liability company. The name of the company was further changed to the present with effect from 7^th March, 2002.

The company’s registered office was transferred from 84-A, Mittal Court, 222, Nariman Point, Mumbai – 400021, Maharashtra to its present address.

Profile

It also acts as general order suppliers, importers, exporters, merchants, stockists, buyers, sellers, agents, brokers, commission agents and dealers of cotton, jute, tea, coffee, rubber, oil, grains, pulses, seeds, vegetable products, cotton goods, jute goods, textile garments, yarn, synthetic goods, domestic appliances, furnitures, decorative items, gift items, steel utensils, plastic goods, rubber items, pulp, paper, engineering goods, electrical items, electronic items, etc.

It is also incorporated to undertake business in information technology industry in India and Overseas.

In August 2001, company has commenced commercial services of its Internet Data Centre in Mumbai.

In March 2002, company has also partly commenced commercial services of its Internet Data Centre in Bangalore.

It is in trade terms with:-

· Diamond Pipes

· Bharat Spuns Pipe and Construction Company

· Erectofab

· JMD Enterprises

· Kalpana Glass Fi

· R.R. Construction

· National R.C.C. Spun Pipe Company

· Shivsakthi Traders

· Sai Construction

· Ganapthi Trading Company

· Tripathi Construction

· Harendra Construction Company Private Limited

· Ashok Parvadan

· Shivam Construction,

· Chandan Kumar

· N.B.S. Engicon Private Limited

Change of Name

During the year under report, the company changed its name from Reliance Infocom Limited to Reliance Communications Infrastructure Limited. A fresh certificate of incorporation consequent to the change of name of the company was received from Registrar of Companies, Maharashtra on 7^th March, 2002.

The company’s fixed assets of important value include goodwill, leasehold land, freehold land, building, plant and machinery, electrical installations, office equipments, furniture and fixtures and vehicles.

Form 8 :

Corporate identity number of the company	U64203MH1997PLC166329
Name of the company	RELIANCE COMMUNICATIONS INFRASTRUCTURE LIMITED
Address of the registered office or of the principal place of business in India of the company	H Block, 1^st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai – 400 710, Maharashtra, India
This form is for	Creation of charge
Type of charge	Movable property Others
Particular of charge holder	Axis Trustee Services Limited, Maker, Towers – F, 13^th Floor, Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India
Nature of instrument creating charge	Deed of Hypothecation dated March 9, 2011 executed by Reliance Communications Limited, Reliance Communications Infrastructure Limited, Reliance Infratel Limited and Reliance Telecom Limited, the Chargors in favour of Axis Trustee Services Limited acting as the Security Trustee
Date of instrument Creating the charge	09.03.2011
Amount secured by the charge	Rs.86850.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Extent and operation of the charge : First pari passu charge in favour of Axis Trustee Services Limited as Security Trustee for various facilities availed by the Chargors inter alia on i) all and singular of the whole of the respective Chargors present and future plant and machinery and ii) all the right, title, interest, benefit, claims and demands whatsover of the respective Chargors in, to, under and in respect of all insurance contracts, more particularly described in Clause 3 of the Deed of Hypothecation dated March 9, 2011.

Fixed Assets

· Freehold Land

· Buildings

· Plant and Machinery

· Electrical Installations

· Office Equipment

· Furniture and Fixtures

· Vehicles

WEBSITE DETAILS :

Press Releases

 Reliance Firm has Signed MoU’s with 3 State

The decision to leverage its mammoth telecom infrastructure – which comprises 60000 km of fibre-optic cabling in 16 states, linking 115 cities (more than 40% has already been completed) is part of what Reliance terms its "change India project".

To start with, the e-governance systems will consist of information oriented applications, such as government rulings and orders as well as application forms. Today, even to get access to basic information, people have to trek to the local tehsildar's office. In the next phase, there will be interactive applications, whereby individuals will be able to apply for a driver's license or make revenue payments through the kiosks, which will be operated by a network of franchisees, said Mr. M. Sahu, Chief of Gujarat Informatics, "Reliance has commissioned a market survey to find out which services people most desire to be put online. Based on that, the company will develop the next phase.

A 35000 strong labour force has been deployed on the ground for the cable laying operations. This will provide high speed voice and data services to facilitate business like virtual private networks, data centres, bandwidth leasing and eventually domestic and international long-distance telephony.

State, Reliance may Usher in a New Era

Tired of trekking to the local tehsildar's office to find out the status of licence application? Need to get information on land or the latest mandi prices? Life may soon get easier for villagers across India.

In an innovative public private sector initiative, Reliance Infocom, the telecom and IT arm of Reliance Industries, has partnered with four state governments to set up their e-governance infrastructure. In the lead is Gujarat where work on creating 1500 electronic information kiosks with basic e-governance applications has already begun – all at no cost to the government.

A proposal has been submitted to the Maharashtra Government. Maharashtra Chief Secretary Mr. Arun Bongirwar says that "they are seriously considering the proposal. However, the government should not be compromised in any way, given that a private enterprise will have access to government data."

The kiosks will provide information and applications that are already in public domain. Principal Secretary of Gujarat IT department Mr. J. S. Rana says "Reliance Infocom was in the process of laying a fibre-optic cable network and creating information kiosks for their commercial purposes.

Given that the infrastructure was already developed, they offered to help to develop e-governance applications as well. About 300 kiosks across the state will be rolled out within the next six month. The company is working in a joint venture with Gujarat Informatics Limited, a state government undertaking.

Amalgamation and Arrangement: 

(a) Scheme of arrangement with Reliance Industries Limited: 

Reliance Communications Limited Company was vested with the Telecommunications Undertaking of Reliance Industries Limited ('Demerged Company') pursuant to the Scheme of Arrangement ('Demerger Scheme') under Sections 391 to 394 of the Companies Act, 1956 as approved by the Hon'ble High Court of Judicature at Bombay vide orders dated 9th December, 2005 with effect from 1st September, 2005.

The telecommunications undertaking, constituted inter-alia, investments in Reliance Infocomm Limited, Reliance Communications Infrastructure Limited and Reliance Telecom Limited. 

In terms of the said Scheme, 122,31,30,422 equity shares of the Company were issued and alloted to the shareholders of the Demerged Company (except to the Specified Shareholders) in the ratio of one equity share each of Rs. 5 of the Company for every one equity share of Rs. 10 held in the Demerged Company. 

The equity shares of the Company so issued were listed and admitted for trading on Bombay Stock Exchange Limited ('BSE') and National Stock Exchange of India Limited ('NSE') with effect from 6th March, 2006. The Global Depository Receipts (GDRs) of the Company were also listed on the Luxembourg Stock Exchange. 

(b) Scheme of amalgamation and arrangement involving reorganisation of group telecom business: As stated above, the Scheme of Amalgamation and Arrangement (Scheme) for the amalgamation of Reliance Infocomm Limited, Ambani Enterprises Private Limited, Reliance Business Management Private Limited, Formax Commercial Private Limited, Reliance Communications Technologies Limited, Reliance Software Solutions Private Limited, Reliance Communications Solutions Private Limited and Panther Consultants Private Limited ('Transferor Companies') and demerger of the Network division of the Reliance Communications Infrastructure Limited with the Company, as approved by the Hon'ble High Court of Judicature at Bombay and the Hon'ble High Court of Gujarat at Ahmedabad, vide orders dated 21st July, 2006 and 18th July, 2006 respectively became effective on 12th September, 2006.

In terms of the said Scheme, the Company issued and allotted 82,14,84,568 equity shares of Rs. 5 each to the promoter group being the shareholders of the transferor companies. Further, as an integral part of the said Scheme, Reliance Communications Infrastructure Limited, Reliance Telecom Limited, Flag Telecom Group Limited Reliance Infocomm Infrastructure Private Limited, Reliable Internet Services Limited, Campion Properties Private Limited and their respective subsidiaries including subsidiaries of erstwhile Reliance Infocomm Limited became wholly owned subsidiaries of the Company.

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 records 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.44.59
UK Pound	1	Rs.71.62
Euro	1	Rs.62.78

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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		58

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	--

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