MIRA INFORM REPORT

Report Date :

17.03.2011

IDENTIFICATION DETAILS

Name :	VIOM NETWORKS LIMITED (w.e.f. 11.08.2005)

Formerly Known As :	WIRELESS TT INFO SERVICES LIMITED (w.e.f 31.03.2005) TATA TELE INFO LIMITED

Registered Office :	5^th Floor, Gowra Trinity Chiran Fort Lane, Begumpet, Secunderabad-500003, Andhra Pradesh

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	22.03.2004

Com. Reg. No.:	01-042926

CIN No.: [Company Identification No.]	U72200AP2004PLC042926

TAN No.: [Tax Deduction & Collection Account No.]	HYDW00465D

PAN No.: [Permanent Account No.]	AACCT1282E

Legal Form :	A closely held Public Limited Liability Company.

Line of Business :	Providing Telecom Infrastructure.

RATING & COMMENTS

MIRA’s Rating :

B (34)

RATING

STATUS

PROPOSED CREDIT LINE

26-40

Capability to overcome financial difficulties seems comparatively below average.

Small

Maximum Credit Limit :	USD 70000000

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is a joint venture between Tata Teleservices Limited and Quippo Telecom Infrastructure Limited. It is an established company having moderate track. Profitability of the company is under pressure. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

NOTES :

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

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION DECLINED BY

Management Non Co-Operative.

LOCATIONS

Registered Office :	5^th Floor, Gowra Trinity Chiran Fort Lane, Begumpet, Secunderabad-500003, Andhra Pradesh, India
Tel. No.:	91-40-66551010/66446710
Fax No.:	91-40-66553339/66446767
E-Mail :	srven@wttil.com arun.bansal@viomnetworks.com

Corporate Office :	14^th and 15^th Floor, DLF Square, Jacaranda Marg, DLF Phase 2, Gurgaon, Haryana, India
Tel. No.:	91-124-6651300

DIRECTORS

As on 09.09.2010

Name :	Mr. Shailendra Kumar Gupta
Designation :	Director
Address :	C-1/301, Uniworld City Sector 30, Gurgaon-122002, Haryana, India
Date of Birth/Age :	09.09.1942
Date of Appointment :	30.12.2004

Name :	Mr. Murali Santhanagopalan
Designation :	Director
Address :	Garudathri No. 302, 3^rd Floor, Atlantis Tower, Raheja Acropolis Wing 1, No. 2, Deonar Pada Road, Near BSNL Telecom, Factory Off Sion Trombay Road, Chembur, Mumbai-400088, Maharashtra, India
Date of Birth/Age :	09.03.1961
Date of Appointment :	30.10.2006

Name :	Mr. Arun Kumar Ramanlal Gandhi
Designation :	Director
Address :	Akruti Astha Building, 9^th Floor, 23 G Dongersey Road, Walkeshwar, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	15.03.1943
Date of Appointment :	01.11.2007

Name :	Mr. Srinath Narasimhan
Designation :	Director
Address :	801, Grandbay Apartments, 8^th Floor, 17^th Hill Road, Bandra West, Mumbai-400050, Maharashtra, India
Date of Birth/Age :	08.07.1962
Date of Appointment :	01.11.2007
Date of Ceasing:	05.10.2009

Name :	Mr. Gajanana Rao Ainapurapu
Designation :	Director
Address :	Flat No. 14/401, NRI Complex, Seawoods Estate, Nerul, Navi Mumbai-400706, Maharashtra, India
Date of Birth/Age :	09.03.1968
Date of Appointment :	01.11.2007
Date of Ceasing:	06.10.2009

Name :	Mr. Sunil Kanoria
Designation :	Director
Address :	Kanoria House, 3 Middle Road, Hastings, Kolkata-700022, West Bengal, India
Date of Birth/Age :	04.05.1965
Date of Appointment :	18.08.2009

Name :	Mr. Hemant Kanoria
Designation :	Director
Address :	Kanoria House, 3 Middle Road, Hastings, Kolkata-700022, West Bengal, India
Date of Birth/Age :	05.08.1962
Date of Appointment :	18.08.2009

Name :	Mr. Satish Kumar Gulab Chand Mandhana
Designation :	Director
Address :	901, 9^th Floor, Virgo Heights, 388, 16^th Road, Bandra West, Mumbai-400050, Maharashtra, India
Date of Birth/Age :	01.01.1961
Date of Appointment :	18.08.2009

Name :	Mr. Amit Jain
Designation :	Director
Address :	Building No. 10, Way No. 238, Flat 42, Ghoubra North, P O Box 449, Muscat-100
Date of Birth/Age :	27.01.1980
Date of Appointment :	18.08.2009
Date of Ceasing:	09.09.2010

Name :	Mr. Anil Kumar Sardana
Designation :	Director
Address :	15 Gagan Vihar, New Delhi-110051, India
Date of Birth/Age :	16.04.1959
Date of Appointment :	06.10.2009

Name :	Mr. Su Bodh Kumar Bhargava
Designation :	Director
Address :	A-15/1, DLF Phase-1, Gurgaon-122001, Haryana, India
Date of Birth/Age :	30.03.1942
Date of Appointment :	06.10.2009

Name :	Mr. Dipankar Chatterji
Designation :	Director
Address :	Flat No. 2A, Minto Park Syndicate, 13 DI, Khan Road, Kolkata-700027, West Bengal, India
Date of Birth/Age :	23.08.1948
Date of Appointment :	25.11.2009

Name :	Mr. Varun Bajpai
Designation :	Director
Address :	91, Rushabh Aparments, Opposite Harikisandas Hospital, Prarthana Samaj, Near Opera House, Mumbai-400040, Maharashtra, India
Date of Birth/Age :	12.03.1976
Date of Appointment :	09.09.2010

KEY EXECUTIVES

Name :	Mr. Ramaswamy Venkatesan Sekharipuram
Designation :	Company Secretary
Address :	Plot No. 38, Out Colony, Sainikpuri, Hyderabad-500094, Andhra Pradesh, India
Date of Birth/Age :	20.08.1957
Date of Appointment :	01.06.2008

Name :	Mr. Arun Kapur
Designation :	Manager
Address :	316, The Aralias, DLF Golf Links, Phase 5, Gurgaon, Haryana, India
Date of Birth/Age :	25.12.1953
Date of Appointment :	01.04.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 09.09.2010

Names of Shareholders	No. Equity of Shares	No. of Preferences Shares
Tata Teleservices Limited, India	347636187	--
Tata Sons Limited, India	12076875	--
Quippo Telecom Infrastructure Limited, India	1848424	--
Macquarie SBI Infrastructure Investments Pte. Limited, Singapore	61444554	--
State Bank of India	12303446	--
AMP Capital Asian Giants Infrastructure Fund, Mauritius	870929	--
IDFC Trustee Company Limited, A/c IDFC Infrastructure Fund 3, A/c IDFC Private Equity Fund III, India	35927205	--
SREI Infrastructure Finance Limited, India	25265004	--
SREI Venture Capital Trust - Infra Construction Fund, India	5648505	--
SREI Venture Capital Trust – Prithvi Infrastructure Fund, India	6620300	--
Funderburk Mauritius Limited, Mauritius	42337331	--
Quippo Infrastructure Equipment Limited, India	52859873	--
Indivest Pte. Limited, Singapore	15555925	--
Roaring Investment Pte. Limited, Singapore	14983198	--
Axios Investments Pte. Limited, Singapore	5242987	--
Everest Capital (M) Limited, Louis Mauritius	4544212	--
The Infrastructure Fund of India, LLC, Mauritius	3348157	--
Hemant Kanoris and Pradeep Kumar Sarkar	1605243	--
Opulent Venture Capital Trust, India	1669658	--
Sunil Kanoria	1023	--
Arund Kapur	341	--
Manoj Jain	341	--
Probal Ghosal	68163	--
Ajay Diwan	10224	--
Pankaj Khanna	10224	--
Vasant Harshakrai Kallola	10224	--
Tata Teleservices Limited, India	1	--
Tata Teleservices Limited, Joint S R Venkatesan	1	--
Tata Teleservices Limited, Joint R Ravichandran	1	--
Tata Teleservices Limited, Joint S Sridhar	1	--
Tata Teleservices Limited, Joint A V S Prasad	1	--
Tata Teleservices Limited, Joint Ravi Vijayaraghavan	1	--
Infrastructure Development Finance Company Limited, India	--	250000000

Total	651888559	250000000

As on 09.09.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		76.73
Mutual Funds		23.01
Venture Capital		0.26
Total		100.00

BUSINESS DETAILS

Line of Business :

Providing Telecom Infrastructure.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

Axis Bank Limited, 2^nd Floor, Axis House, Bombay Dyieng Compound, Panduran Bhudkar Marg, Worli, Mumbai-400025, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Long Term Loan from Financial Installation and Banker
From financial institution	1000.000	0.000
From bank	43205.700	18499.900
Interest accrued and due on above	55.300	0.000
Short Term Loans from Banks
Cash credit	262.800	0.000
From banks	11750.300	2746.500
Total	56274.100	21246.400

Unsecured Loan
Short Term Loan
From Banks	100.000	0.000
Interest accrued and due on above	1.100	0.000
From others	1000.000	0.000
Debenture pending allotment accounts	1000.000	0.000
Total	2101.100	0.000


Banking Relations :	--

Auditors :
Name :	S.R. Batliboi and Associates Chartered Accountant
Address :	18^th Floor, Express Towers, Nariman Point, Mumbai-400021, Maharashtra, India
Tel No.:	91-22-66656000
Fax No.:	91-22-22826000

Holding Company:	Tata Teleservices Limited (U74899DL1995PLC066685)

Ultimate Holding Company:	Tata Sons Limited

Fellow Subsidiary:	Tata Capital Limited

CAPITAL STRUCTURE

As on 09.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000000	Equity Shares	Rs.10/- each	Rs.10000.000 Millions
250000000	Preferences Shares	Rs.10/- each	Rs.2500.000 Millions
250000000	Unclassified Shares	Rs.10/- each	Rs.2500.000 Millions
	Total		Rs.15000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
651888559	Equity Shares	Rs.10/- each	Rs.6518.885 Millions
250000000	Preferences Shares	Rs.10/- each	Rs.2500.000 Millions
	Total		Rs.9018.885 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
810000000	Equity Shares	Rs.10/- each	Rs.8100.000 Millions
690000000	Preferences Shares	Rs.10/- each	Rs.6900.000 Millions
	Total		Rs.15000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
490132579	Equity Shares	Rs.10/- each	Rs.4901.300 Millions
250000000	Preferences Shares	Rs.10/- each	Rs.2500.000 Millions
	Total		Rs.7401.300 Millions

Note:

Of the above:

347636193 (Previous Year 414851728) equity shares are held by Tata Teleservices Limited, the 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		7401.300	4613.000	0.500
2] Share Application Money		1561.200	0.000	0.000
3] Reserves & Surplus		10714.600	1825.300	0.000
4] (Accumulated Losses)		(2137.600)	(2569.500)	(298.500)
NETWORTH		17539.500	3868.800	(298.000)
LOAN FUNDS
1] Secured Loans		56274.100	21246.400	6746.400
2] Unsecured Loans		2101.100	0.000	1555.900
TOTAL BORROWING		58375.200	21246.400	8302.300
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		75914.700	25115.200	8004.300

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		69382.000	23612.600	10111.500
Capital work-in-progress		3546.200	4335.000	1409.500

INVESTMENT		100.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	9061.000	2359.100	1783.600
	Cash & Bank Balances	1142.100	1825.100	2.700
	Other Current Assets	5164.300	139.300	0.000
	Loans & Advances	6182.800	2319.200	403.700
Total Current Assets		21550.200	6642.700	2190.000
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11735.400	7906.700	5196.300
	Other Current Liabilities	5424.600	1360.600	360.200
	Provisions	1743.000	240.300	166.100
Total Current Liabilities		18903.000	9507.600	5722.600
Net Current Assets		2647.200	(2864.900)	(3532.600)

MISCELLANEOUS EXPENSES		239.300	32.500	15.900

TOTAL		75914.700	25115.200	8004.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Services Revenue	17392.000	5099.400	1355.800
		Other Income	0.000	0.000	0.000
		TOTAL (A)	17392.000	5099.400	1355.800

Less	EXPENSES
		Infrastructure operating expense	6725.500	2539.300	574.600
		Employee costs	750.900	247.600	78.700
		Administration and spellings costs	1387.900	363.500	91.400
		Amortization	84.100	24.100	5.200
		Provision for show moving and site material and damaged assets	244.400	31.400	0.000
		TOTAL (B)	9192.800	3205.900	749.900

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8199.200	1893.500	605.900

Less	FINANCIAL CHARGES (D)		4478.500	1668.200	320.900

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3720.700	225.300	285.000

Less/ Add	DEPRECIATION/ AMORTISATION (F)		5858.300	2488.600	584.700

	PROFIT BEFORE TAX (E-F) (G)		(2137.600)	(2263.300)	(299.700)

Less	TAX (H)		0.000	7.800	0.500

	PROFIT AFTER TAX (G-H) (I)		(2137.600)	(2271.100)	(300.200)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2569.500)	(298.500)	1.700
	ADJUSTMENT TO THE ACCUMULATED BALANCE OF THE PROFIT AND LOSS ACCOUNT AS PER SCHEME		2569.500	0.000	0.000

	BALANCE CARRIED TO THE B/S		(2137.600)	(2569.600)	(298.500)

	Earnings Per Share (Rs.)		(3.36)	(7.80)	(6003.76)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(12.29)	(44.54)	(22.14)

Net Profit Margin (PBT/Sales)	(%)	(12.29)	(44.38)	(22.11)

Return on Total Assets (PBT/Total Assets}	(%)	(2.35)	(7.48)	(2.44)

Return on Investment (ROI) (PBT/Networth)		(0.12)	(0.59)	(1.00)

Debt Equity Ratio (Total Liability/Networth)		4.40	7.95	47.06

Current Ratio (Current Asset/Current Liability)		1.14	0.70	0.38

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
Dues for capital goods	10871.700	7356.300	595.400
Dues to micro and small	211.200	20.500	0.000
Dues to creditors, others than micro enterprises and small enterprises	652.500	529.900	4600.900
Total	11735.400	7906.700	5196.300

Background:

a. Nature of Business:

Viom Network Limited (‘the Company’ or ‘Viom’) was incorporated in India on March 22, 2004 as Tata Tele Info Limited (On March 31, 2005 the name of the company was changed to Wireless TT Info Services Limited) (WTTIL), Subsequently on August 11, 2010, the name of the company was changed to Viom Network Limited, primarily to build, develop, maintain, supply operate, manage and deal in services, facilities and infrastructure in connection with or ancillary to telecommunication systems. The Company is subsidiary of Tata Teleservices Limited TTSL’).

b. Strategic Arrangements

During the Period, on December 24, 2008, TTSL, Tata Sons Limited (‘TSL’) and Quippo Telecom infrastructure Limited (QTIL) entered into definitive agreements for induction of QTIL as a 49 per cent shareholder in WTTLL, envisaged to be completed in two stages. The completion of the transaction is subject to certain conditions including obtaining necessary regulatory approvals.

c. Project Financing/Funding update:

As at March 31, 2009, the Company has a negative working capital of Rs 286.49 (2008- Rs 353.26) and has incurred losses of Rs 227.10 and has accumulated losses of Rs 256.95. Further, networth of the company as at March 31, 2009 is Rs 383.63 (after setting off unamortized balance of miscellaneous expenditure of Rs. 3.25), i.e. an erosion of 40.41%. The Company has obtained loan sanction of Rs. 2,525 (drawn Rs 2,124.64) and received promoters’ contributions of Rs 643.78.

The Company:

During the year the company applied for approval of the scheme of arrangement with Delhi and Andhra Pradesh High courts for demerger of passive infrastructure of QUIPPO with WTTIL, thereby creating a strategic partnership with synergetic aggregate tower portfolio of 33,832 as on March 31, 2010 and creating one of the largest independent shared telecom infrastructure companies. Following the approval of the AP and Delhi High Court for the demerger of passive infrastructure, the company announced a new name with a brand identity – VlOM NETWORKS LIMITED. The company is being managed by Board of Directors and it's committees.

Existing Business

Subject has pioneered the Shared Passive Telecom Infrastructure industry in India and it continues to show significant growth in the current year. The rollout of Towers and tenancies more than doubled in the current year thereby registering the highest incremental growth in the industry and emerged as the clear market leader in Tenancy ratio at the end of the year.

Strategic Acquisitions

The Company entered into a Share Purchase Agreement with Tata Teleservices (Maharashtra) Limited (TTML) to acquire all the shares held by TTML in its wholly owned subsidiary company, 21'' Century lnfra Tele Limited (CITL) at an enterprise value of Rs 13180.000 millions With this acquisition, CITL becomes wholly owned subsidiary of the company. The CITL acquisition would give an additional portfolio of 2,535 towers in the territory of Mumbai, Rest of Maharashtra and Goa. The aforesaid transaction will provide strategic advantage by having a contiguous national network post acquisition.

Telecom Sector Scenario

The Indian telecom sector witnessed one of the fastest growing years in 2009-10 recording the highest increase in subscriber base and reaching a teledensity of more than 50% by the end of the year. This accelerated growth is expected to continue with the recent auction of spectrum for the new technologies like 3G and WiMax.

Notwithstanding the rapid growth in subscriber base in recent years, the overall tele-density in India is still low in comparison to developed countries such as United Kingdom (-120%) and even South East Asian countries such as Taiwan (-100%). Hence, the Indian telecom sector has significant potential to sustain long term growth over the next few years. Further, it is estimated that with the introduction of 3G and Wimax, the telecorn traffic and tele-density would increase substantially and this high rate of growth in the Indian telecom sector will continue to drive rollout of networks and consequent investments in passive infrastructure.

Growth of Passive Infrastructure Business

Financial Year 2009-10 witnessed several challenges across the economy due to the slow recovery from the global financial crisis. This, together with massive sever reduction in tariffs had a major impact on the roll out plans of new telecom operators and expansion by the existing operators. Despite these constraints, the passive infrastructure industry in India has experienced significant growth during the year. It is expected that the country would require about approximately half a million telecom towers to meet the network coverage requirement of the existing and new operators. At the same time, tenancy ratios on towers are projected to increase significantly from less than 1.7 in 2010 to 2.5 by 201 5, due to launch of 3G and WiMax and also due to increase in teledensity in rural areas. This opportunity has resulted in the growth of independent tower companies and international players are also keenly evaluating opportunities in the Indian market through the inorganic route.

Business Performance

The Company registered tremendous growth during the 2009-10 and increased its tower base in excess of 33,832 from a base of 18,050 and established itself as the third largest player in the passive telecom infrastructure space in India. The company has a tenancy ratio of 2.07 as of March 31, 2010, being the highest in the industry.

During 2009-10, the company successfully executed Phase I of the contractual requirement of Uninor - of almost 14000 tenancies, nearly 70% of which were provided from existing towers and the balance by fresh rollout. The Company also executed the tower and tenancy requirement for the GSM rollout of Tata Teleservices Limited, in all the circles they launched. With Master Sharing Agreements (MSA) in place with most of the mobile telecorn operators, the Company aims to improve its tenancies for all operators during the year.

New Business Initiative

The Company has carried out significant and comprehensive exercise to assess the potential market of the various new business streams like Managed services, In Building solutions (IBS), BTS Hotels. The Company has recently won the prestigious contracts for 16s for Delhi International Airport, Mumbai International Airport and Cochin International Airport. In addition to this the company also has more than 150 IBS sites running across the country. In the Managed services and rural segments, the Company has already tied up with key customers and is in process of implementing pilot sites.

Going Forward - Projections for the next year

The business potential for the current year is positive and the Company expects to increase its Tenancy market share from 15% to 20%. The Annual Operating Plan for the financial year 2010-1 1 was approved by the Board of Directors in their meeting held in April 2010. The significant factors which the operators would look forward is the network footprint of the IP provider, capacity, price, quality of service, efficiency in 0 8 M services and reduced costs in fuel/energy by introduction of proper energy management services. The company is looking to build on the synergies it has to meet these requirements of the operators.

Completion of Long Term Strategic Plan (LTSP) and Short Term Execution Plan (STEP)

During the year, the Company engaged Mckinsey and Company to identify the key drivers of growth over the next 5 years, keeping in mind de-risking strategies and adjacent business opportunities. They also engaged them to put in place a series of initiatives for reducing the Capital expenditure and Operating expenditure on a sustainable basis.

The Company also engaged. KPMG to develop an implementation plan of LTSP thru STEP as well as to integrate all the key processes of WTILL and QTIL for effective post merger integration.

Awards and Recognition

The company has won the prestigious award for being the "Largest Independent Telecom Tower Company" at the INFOCOM Business world CMAI National Telecom Awards 2010 for the second consecutive year.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U72200AP2004PLC042926
Name of the company	VIOM NETWORKS LIMITED
Address of the registered office or of the principal place of business in India of the company	5^th Floor, Gowra Trinity Chiran Fort Lane, Begumpet, Secunderabad-500003, Andhra Pradesh, India
Type of charge	Book Debts Movable Property (not being pledge) Others
Particular of charge holder	Axis Bank Limited, 2^nd Floor, Axis House, Bombay Dyieng Compound, Panduran Bhudkar Marg, Worli, Mumbai-400025, Maharashtra, India
Email	more.sachin@axisbank.com
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation dated February 23, 2011 entered with Axis Bank Limited.
Date of instrument Creating the charge	23.02.2011
Amount secured by the charge	Rs.8500.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the Term Loan Agreement with respective Banks. Terms of Repayment As per the terms of Term Loan Agreement with respective Banks. Extent and Operation of the charge First pari passu charge on all the movable assets (including current assets) of the Company, both present and future.
Short particulars of the property charged	I) Hypothecation of movable properties of the Company including but not limited to current assets, II) Book debts, operating cash flows, revenues / receivables, letter of credit & stocks III) All insurance claims / policies IV) Credit balances with banks V) Intangible assets.

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.45.18
UK Pound	1	Rs.72.58
Euro	1	Rs.63.13

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		34

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.

MIRA INFORM REPORT

0.000

9061.000

1142.100

5164.300

6182.800

21550.200

11735.400

5424.600

1743.000

18903.000

2647.200

(12.29)

(12.29)

(2.35)

(0.12)

4.40

1.14

Unit