MIRA INFORM REPORT

Report Date :

08.06.2011

IDENTIFICATION DETAILS

Name :	VODAFONE ESSAR GUJART LIMITED (w.e.f.28.06.2007)
Formerly Known As :	FASCEL LIMITED
Registered Office :	6^th Floor, Salar – II, Ellisbridge 6, Ahmadabad – 380 006, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.03.1995
Com. Reg. No.:	04-035282
Capital Investment / Paid-up Capital :	Rs. 5000.000 millions
CIN No.: [Company Identification No.]	U32100GJ1995PLC035282
TAN No.: [Tax Deduction & Collection Account No.]	AHMF00110F
PAN No.: [Permanent Account No.]	AAACF1190F
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Providing Cellular Mobile Telephony Services.
No. of Employees :	Not divulged by the management.

RATING & COMMENTS

MIRA’s Rating :

A (65)

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 and a reputed cellular services provider in India. 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 good for normal 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

Name :	Mr. Milan Shah
Designation :	Key Executive
Date :	07.06.2011

LOCATIONS

Registered Office :	601, 6^th Floor, Salar – II, Ellisbridge 6, Ahmadabad – 380 006, Gujarat, India
Tel. No.:	91-79-26577228
Fax No.:	91-79-26575990
E-Mail :	srinivas.varanasi@hutch.in / celforce@vsnl.com / vodafonecare.gujarat@vodafone.com ashesh.thakore@vodafone.com
Website :	www.hutch.in
Branches Office :	Ahmadabad Office: Fascel House, 46- B, Swastik Society, Stadium Circle, Navrangpura, Ahmadabad – 380 009 Tel No: 91-79-26421018/26421031 Fax no: 91-79-26426991 Baroda Office: 1^st Floor, Meghdhanush Building, Near, Transpek Circle, Gotri Road, Baroda- 390 007, Gujarat, India Tel No: 91-265-2783517 / 2783520 Fax No: 91-265-2783530 Bhavnagar Office: Address: 12, B and C, Basement, Turning point Complex, Waghavadi Road, Bhavnagar – 364 001, India Tel No: 91-9825098226 / 9825098227 Fax No: 91-278-2433722 Gandhidham Office: C -52, Shaktinagar, Near, Oslo Char Rasta, Gandhidham – 370 201, India Tel No: 91-2836 – 236391 Fax No: 91-2836-236291 Jamnagar Office: 11, Ground floor, Shridham Complex, opposite Town Hall, Jamnagar – 361001, India Tel No: 91-288-2770179 / 2555752 Fax No: 91-288-2555752 Junagadh Office: 315, 3^rd Floor, Indralok Arcade, Talavgate Road, Junagadh, India Tel No: 91-9825098224 / 9825098225 Fax No: 91-285-2629998 Mehsana Office: Shop No. 2 and 3 UL Apollo Enclave, Modhera Cross Roads, Mehsana, India Tel No: 91-2762 -232228 Fax No: 91-2762-232249 Rajkot Office: 1^st Floor, Near, Kathiawad, Gymkhana, Rajkot – 360 001, India Tel NO: 91-9825098205 -208 Fax No: 91-281-2462501 Surat Office: Pratishtha Complex – B Near, experimental School, Holiday –Inn Road, Parle Point, Surat – 395 007, Gujarat, India Tel No: 91-9825098218 – 223 Fax No: 91-261-2254613 Vapi Office: 1^st Floor, White House, opposite Gunjan Cinema, Koparly Road, Vapi – 396 95, India Tel No: 91-9825098228 Fax No: 91-260-2428348

DIRECTORS

AS ON 27.09.2010

Name :	Mr. Vishwanathan Venkatesh
Designation :	Director
Address :	D-6, Krishnalaya, 33-1/34, N. S. Manikar Marg, Sion Chunnabhatti, Mumbai-400022, Maharashtra, India
Date of Appointment :	09.07.2010
DIN No :	03122706
Name :	Mr. Ravinder Takkar
Designation :	Director
Address :	Villa No.111, Laburnum Condominium Complex, Sushant Lok, Gurgaon-122001, Haryana, India
Date of Birth/Age :	05.07.1968
Date of Appointment :	10.02.2010
DIN No :	01719511
Name :	Mr. Seshan Krishnan Iyer
Designation :	Director
Address :	79, Tejal, Road No.2, Hindu Coliny, Dadar, Mumbai- 400014, Maharashtra, India
Date of Birth/Age :	09.08.1968
Date of Appointment :	01.04.2009
DIN No :	01724793
Name :	Mr. Harit A Nagpal
Designation :	Director
Address :	Flat No.1101, 11^th Floor, Sterling Sea Face, Annie Besant Road, Worli, Mumbai- 400018, Maharashtra, India
Date of Birth/Age :	02.11.1961
Date of Appointment :	18.12.2007
Date of Cessation :	11.06.2009
Name :	Mr. Vikash Saraf
Designation :	Director
Address :	2B, Saker Apartments, 71, Pochkanwala Road, Worli, Mumbai- 400025, Maharashtra, India
Date of Birth/Age :	18.12.1968
Date of Appointment :	01.02.2005
DIN No :	00055579
Name :	Mr. Otty L W John
Designation :	Director
Address :	1 , Harvest Place, Wargrave Reading, Berkshire, United Kingdom- RG108AQ
Date of Birth/Age :	13.01.1964
Date of Appointment :	07.01.2009
DIN No :	02432741

KEY EXECUTIVES

Name :	Mr. Balesh Sharma
Designation :	Manager
Address :	28, Asopalav Bunglows, Thaltej, Ahmadabad-380059, Gujarat, India
Date of Birth/Age :	04.09.1964
Date of Appointment :	01.04.2010
PAN No :	AGWPS2212C
Name :	Mr. Ashesh Thakore
Designation :	Secretary
Address :	1, Sumeru Apartment, 13, Pritam Nagar, Ellis Bridge, Ahmadabad-38006, Gujarat, India
Date of Birth/Age :	12.10.1965
Date of Appointment :	11.03.2010
PAN No :	AAIPT6149D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2010

Names of Shareholders	No. of Shares
Central Depository Services (India) Limited- Beneficiary – Vodafone Essar Limited	499999400
Vodafone Essar Limited, India	200
Krishna Iyer Jointly with Vodafone Essar Limited	100
Vodafone Essar East Limited Jointly with Vodafone Essar Limited	100
Vodafone Essar Mobile Services Limited Jointly with Vodafone Essar Limited	100
Vodafone Essar Digilink Limited Jointly with Vodafone Essar Limited	25
Vodafone Essar South Limited Jointly with Vodafone Essar Limited	50
Vodafone Essar Cellular Limited Jointly with Vodafone Essar Limited	25
Total	500000000

AS ON 27.09.2010

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Cellular Mobile Telephony Services.

GENERAL INFORMATION

No. of Employees :

Not divulged by the management.

Bankers :

· The Hong Kong and Shanghai Banking Corporation Limited

Address: 52/60, MG Road, Fort, Mumbai – 400 001

· Standard Chartered Bank

Address: 90, MG road, Fort, Mumbai – 400 001

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Banks	6096.400	5033.200
Total	6096.400	5033.200

Banking Relations :
Financial Institution:	IL and Fs Trust Company limited Address: IL and FS Financial Centre, Plot No. C -22, Block, BA Kurla Complex, Bandra (West), Mumbai – 400 051, Maharashtra
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr, Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai-400018, Maharashtra, India
Pan No.:	AACFD4815A
Holding Company :	Vodafone Essar Limited CIN No : U32200MH1992PLC119108
Ultimate Holding Company :	Vodafone Group Plc
Intermediate Holding Company :	Vodafone International Holdings B.V.
Subsidiaries :	Vodafone Essar Spacetel Limited CIN No : U72200DL1997PLC0085764
Fellow Subsidiaries :	· Vodafone Essar Cellular Limited · Vodafone Essar Digilink Limited · Vodafone Essar East Limited · Vodafone Essar Mobile Services Limited · Vodafone Essar Shared Services Limited · Vodafone Essar South Limited · Vodafone Albania Sh. A. · Vodafone Australia Pty Limited · Vodafone Czech Republic a. s. · Vodafone D2 GmbH · Vodafone Egypt Telecommunications S.A.E. · Vodafone Espana S.A. · Vodafone Fiji Limited · Vodafone Hungary Mobile Telecommunications Limited · Vodafone India Services Private Limited · Vodafone Ireland Limited · Vodafone Ireland Marketing Limited · Vodafone Libertel B.V. · Vodafone Limited · Vodafone Malta Limited · Vodafone New Zealand Limited · Vodafone Omnitel N.V. · Vodafone Portugal-Comunicacoes Pessoais, S.A. · Vodafone Romania S.A. · Vodafone Telekomunikasyon A.S. · Vodafone-Panafon Hellenic Telecommunications Company S.A. · Ghana Telecommunications Company Limited · Mobile Telecom Limited · Mtc Vodafone (Bahrain) · Vm S.A.R.L. · Vodacom Congo (Rdc) Sprl · Vodacom Group (Pty) Limited · Vodacom Lesotho (Pty) Limited · Vodacom Tanzania Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
750000000	Equity Shares	Rs.10/- each	Rs. 7500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000000	Equity Shares	Rs.10/- each	Rs. 5000.000 Millions

Notes :

(Of the above 499,999,600 (March 31, 2009: 499,999,600) shares are held by the holding company Vodafone Essar Limited (VEL) individually and 400 (March 31, 2009: 400) shares jointly with others). (VEL, pursuant to section 4(6) of the Companies Act, 1956 is a subsidiary of Vodafone Group Plc, the ultimate holding Company)

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		5000.000	5000.000	5000.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		26473.390	22518.160	15087.169
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		31473.390	27518.160	20087.169
LOAN FUNDS
1] Secured Loans		6096.382	5033.174	2180.529
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		6096.382	5033.174	2180.529
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		37569.772	32551.334	22267.698
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13331.003	14589.423	13135.631
Capital work-in-progress		571.433	839.655	635.253
INVESTMENT		1855.000	1855.000	1855.000
DEFERREX TAX ASSETS		504.432	327.203	124.421
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	29.034
	Sundry Debtors	1746.644	1051.077	220.039
	Cash & Bank Balances	567.817	493.577	664.734
	Other Current Assets	0.606	0.825	565.241
	Loans & Advances	25604.519	18301.646	9834.705
Total Current Assets		27919.586	19847.125	11313.753
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4225.400	2561.700	2316.100
	Current Liabilities	2066.696	2039.172	2220.461
	Provisions	319.586	306.200	259.799
Total Current Liabilities		6611.682	4907.072	4796.360
Net Current Assets		21307.904	14940.053	6517.393
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		37569.772	32551.334	22267.698

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	24150.200	22806.200	22712.300
		Other Income	906.400	1286.600	515.100
		TOTAL (A)	25056.600	24092.800	23227.400
Less	EXPENSES
		Cost of SIM Sold	130.200	128.300	80.500
		Access and regulatory charges	7511.900	7059.000	5947.500
		Network operating expenditure	4164.100	2685.400	2018.500
		Personnel Expenses	602.800	513.600	697.800
		Advertisement, marketing, sales and distribution expenses	1318.800	1346.800	1512.700
		Administrative, general and other expenses	2579.200	2007.700	1423.700
		Exceptional Item	0.000	(1587.000)	0.000
		TOTAL (B)	16307.000	12153.800	11680.700
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8749.600	11939.000	11546.700
Less	FINANCIAL EXPENSES (D)		513.900	493.700	220.900
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8235.700	11445.300	11325.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2982.700	2771.900	3375.700
	PROFIT BEFORE TAX (E-F) (G)		5253.000	8673.400	7950.100
Less	TAX (I)		1313.900	1250.500	(100.500)
	PROFIT AFTER TAX (G-I) (J)		3939.100	7422.900	8050.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		22510.100	15087.200	7036.600
	BALANCE CARRIED TO THE B/S		26449.200	22510.100	15087.200
	EXPORT VALUE		209.600	NA	NA
	IMPORTS
		Capital Goods	NA	3173.00	3524.700
	TOTAL IMPORTS		NA	3173.000	3524.700
	Earnings Per Share (Rs.)		7.90	14.80	16.10

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	15.72	30.81	34.66
Net Profit Margin (PBT/Sales)	(%)	21.75	38.03	35.00
Return on Total Assets (PBT/Total Assets}	(%)	12.58	25.19	32.52
Return on Investment (ROI) (PBT/Networth)		0.17	0.31	0.39
Debt Equity Ratio (Total Liability/Networth)		0.40	0.18	0.24
Current Ratio (Current Asset/Current Liability)		1.31	4.04	2.36

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. in millions)

SOURCES OF FUNDS	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
Dues of micro and small enterprises	0.400	0.000	0.000
Dues of creditors from other than micro and small enterprises	4225.000	2561.700	2316.100
Total	4225.400	2561.700	2316.100

OPERATIONS:

The year ended March 2010 finally saw the impact of lower tariffs and increased competition visibly in statistical terms. The year has been challenging and has been a less profitable year for the Company.

The company’s customer base grew to 10.825 million subscribers with a growth rate of 35% on a year on year basis. The Company continues to be the market leader, having a market share of 34% as at 31 March 2010 in a very competitive 7 players market.

During the year 2009-10, the Company has further expanded its network to increase its coverage and networks continue to perform better against acceptable thresholds for the major performance parameters. The Company added 388 cell sites to enhance its network coverage, closing with 6,369 cell sites as at 31 March 2010.

OUTLOOK FOR 2010-11:

Intense competition is expected to continue in FY-2010-11. Pricing action that was undertaken by new operators in FY 2009-10 to penetrate the market will continue to impact revenues. However, it is expected that subscribers will bond with the Company in view of the benefits of customer service, relevant pre-positions and a reliable network as is understood by them. With the company along with its group companies being successful in the recently concluded bids for 3G spectrum, relevant value added services will be launched to enhance income from data and other 3G enabled services.

The Company is ready for Mobile Number Portability as and when it would be introduced by the Government. Plans to attract new high value customers and retain existing customers are in place. The focus on cost reduction and working capital improvement will continue. The regulatory environment is expected to continue to be challenging in the coming year. Given the strong presence in Gujarat and added with brand strength of the Group, you company is confident of addressing these challenges.

FORM 8

Corporate identity number of the company	U32100GJ1995PLC035282
Name of the company	Vodafone Essar Gujarat Limited
Address of the registered office or of the principal place of business in India of the company	601, 6^th Floor, Salar – II, Ellisbridge 6, Ahmadabad – 380 006, Gujarat, India
This form is for	Modification of charge
Type of charge	Others
Particular of charge holder	IL and Fs Trust Company limited Address: IL and FS Financial Centre, Plot No. C -22, Block, BA Kurla Complex, Bandra (West), Mumbai – 400 051, Maharashtra
Nature of instrument creating charge	Deed of confirmation dated 25^th May 2009 in respect of new share pledge agreement.
Date of instrument Creating the charge	25.05.2009
Amount secured by the charge	Rs. 280000.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Rate of interest to be fixed under the terms of the individual facility agreements in respect to debt secured under this charge. Terms of repayment Terms of repayment are to be defined in the individual facility agreements in respect to debt secured by this charge. Margin Margin is to be defined in the individual facility agreements in respect to debt secured by this charge. Extent and operation of the charge Earlier charge was for Rs.140000.000 millions, now increased to Rs.280000.000 millions in respect to share pledges and telecom licence under tripartite agreement vide 1. Deed of confirmation dated 25.05.2009 in respect of new share pledge agreement 2. Notice to dept of telecommunications in respect to the tripartite agreement dated 14.01.2009 All pursuant to amendment dated 25.05.2009 to the amended and restated inter creditor agreement
Short particulars of the property charged (Including location of the property)	Telecom licence of the company in respect to Gujarat circle under tripartite agreement dated 14^th January 2009 Shares of certain subsidiaries pledged under the new share pledge agreement dated 14^th November 2008
Charge identification number of the charge to be modified	80039625
Date of instrument modifying the charge	30.03.2009
Particulars of the present modification	Earlier charge was for Rs.140000.000 millions, now increased to Rs.280000.000 millions in respect to share pledges and telecom licence under tripartite agreement vide 1. Deed of confirmation dated 25.05.2009 in respect of new share pledge agreement 2. Notice to dept of telecommunications in respect to the tripartite agreement dated 14.01.2009 All pursuant to amendment dated 25.05.2009 to the amended and restated inter creditor agreement

FIXED ASSTES:

· Intangible assets

· Computer Software

· Licence Fees

· Tangible assets

· Leasehold Land

· Building

· Leasehold Improvement

· Plant and machinery

· Computer Hardware

· Office equipment

· Furniture and Fixtures

· Vehicles

NEWS

2G Scam: CBI Quizzes Essar Group CEO Ruia

Continuing with its probe into the 2G scam, the CBI today questioned Essar Group CEO Prashant Ruia in connection with the alleged role of the company with Loop Telecom which got licences in 21 circles in January 2008.

His questioning comes a day after ADAG Chairman Anil Ambani was called to the CBI in connection with its probe into the 2G scam as the agency has to inform the Supreme Court by March 1 about the beneficiaries in the case.

According to official sources, Ruia was quizzed about the alleged association of Essar with Loop Telecom which came under scanner in the CBI case registered in October 2009.

The Essar CEO was called amid allegations that Loop Telecom acted as a front company for Essar which has nearly 33 per cent stake in Vodafone-Essar joint venture.

If the allegation were found to be true, it would make Loop Telecom ineligible to get telecom licences.

As per the guidelines, the threshold of cross-holding is below 10 per cent.

"Essar in is full compliance with DoT licence norms and all other applicable laws. As and when any information is sought Essar will provide the same to the authorities," an Essar spokesperson said.

According to the CAG report, Shipping Stop Dot Com (India) Private Limited (later on changed to Loop Telecom Private Limited) submitted its applications for grant of UAS licences for 21 service areas on September 3, 2007 to the DoT.

However, the company changed the main object clauses in its Memorandum of Association (MOA) of Article of Association (AOA) to include the telecom sector to meet the eligibility criteria only on September 28, 2007 only.

CAG had said the submission of altered MOA suppressing the fact of non-registration of alterations in the main object clause of MOA/AOA on the date of application was also in the nature of a fraudulent act with the intention of fulfilling the eligibility criterion prescribed for UAS licences,

Loop Telecom also allegedly made a patently false claim of the paid-up capital of Rs 130.65 crore through their Company Secretary V V Chakradeo while submitting their applications for grant of UAS licences for 21 service areas on September 3, 2007 to the DoT.

The CAG found the same fictitious with a malafide intention to secure the UAS licences.

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.44.74
UK Pound	1	Rs.73.25
Euro	1	Rs.65.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		65

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.