MIRA INFORM REPORT

Report Date :

20.07.2012

IDENTIFICATION DETAILS

Name :	VODAFONE SOUTH LIMITED (w.e.f.13.10.2011)
Formerly Known As :	VODAFONE ESSAR SOUTH LIMITED HUTCHISON ESSAR SOUTH LIMITED BARAKHAMBA SALES AND SERVICES LIMITED
Registered Office :	C-48, Okhla Industrial Area, Phase – II, New Delhi – 110020
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.12.1995
Com. Reg. No.:	55-74451
Capital Investment / Paid-up Capital :	Rs. 7016.100 Millions
CIN No.: [Company Identification No.]	U74899DL1995PLC074451
TAN No.: [Tax Deduction & Collection Account No.]	DELH05216B
PAN No.: [Permanent Account No.]	AABCB5847L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing cellular mobile telephony services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 4500000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject belongs to the Vodafone group. It is an established company having satisfactory track. The company has recorded a better increase in its sales turnover and profitability during the year 2011. Trade relations are reported to be trustworthy. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	C-48, Okhla Industrial Area, Phase – II, New Delhi – 110 020, India
Tel No:	Not Available
Fax No:	Not Available
E-Mail :	PUSHKARAJ.JOSHI@vodafone.com sundeel.khthuria@hutchindia.com manishsansi@hutch.in hari.gopalkirshnen@vodafone.com
Website :	http://www.hutch.co.in .
Corporate Office 1:	Hutch House, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013, Maharashtra
Tel. No.:	91-22-66645000
Fax No.:	91-22-66661222 or 66661200
Corporate Office 2:	C/O Exel India Private Limited, C1 – 44A/173 Santoshpurt, Taratola Link Road, Kolkata, West Bengal, India
Branches :	Located at: Hubli, Mangalore, Mysore, Davangere, Gulbarga, Tumkur Karnataka (Bangalore) Prestige Blue Chip, Ground Floor, Block 1, No – 09, Hosur Road, Bangalore –560029, Karnataka, India Tel : 91-80-5119 3000 Fax : 91-80-5119 3010 Karnataka (Hubli) No. 44, Upper Ground Floor, Laxmibalakrishna Square, Station Road, Hubli 580020, Karnataka Tel : 91-836-236 9853 Fax : 91-836-2369851 Mangalore Oberle Towers, Balmatta Circle, Balmatta Road, Mangalore 575001, Karnataka, India Tel : 91-824-2427789 Mysore 2959, II Floor, “Aishwarya” Arcade, 9^th Cross, Kalidasa Road, V.V. Mohalla, Mysore Davangere No. 266, 1^st Floor, 1^st Main, Bharat Scouts and Guides Towers, Janatha Bazaar Road, P. J. Extension, Davangere-577002, Karnataka Tel : 91 8192 259933/44 Ahmedabad Gujarat Fascel Limited, 601, Sakar-II, Ellisbridge, Ahmedabad 380006, Gujarat Tel : 91-79-26577228/29, 26575990 Delhi Hutch, X-7, Okhla Industrial Area II, New Delhi-110020 Hyderabad 6^th Floor, Varun Towers II, Begumpet, Hyderabad 500016, Andhra Pradesh, India Tel : 91-40-27764600 Fax : 91-40-27764700 Vijaywada Uttam Towers, Labbipet, M.G. Road, Vijayawada 520010 Tel : 91-866-493113 Fax : 91 866 493117 Vishakapatnam Balaji Mangalgiri, VIP Road, Vishakapatnam 530 003, Andhra Pradesh, India Tel : 91-891-760777 Fax : 91-891-760995 Chennai Hutch, 222, TTK Road, Alwarpet, Chennai-600018, Tamilnadu, India Kolkata Kolkata Hutchison Telecom East Limited Constantia Office Complex, 11, Dr. UN Branchmacharis Street, Kolkata-700017, West Bengal, India Tel : 91-9830098241 Jaipur Rajasthan Gaurav Towers, Malviya Nagar, Jaipur, Rajasthan Karnal Kunjpura Road, Karnal-132001, Haryana Tel : 91-9813098130 Lucknow 205-206, Chintels House, 16, Station Road, Lucknow, Uttar Pradesh, India Tel : 91-9839098390

DIRECTORS

As on 29.09.2011

Name :

Mr. Sunil Sood

Designation :

Managing director

Address :

Flat No. 2401/2402, Petit Towers, August Kranti Marg, Kemps Corner, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

09.02.1961

Date of Appointment :

09.07.2010

DIN No.:

03132202

Other directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U64202TZ1995PLC007674	VODAFONE CELLULAR LIMITED	Managing director	09/07/2010	09/07/2010	-	Active	NO
2	U74899DL1995PLC074451	VODAFONE SOUTH LIMITED	Managing director	09/07/2010	09/07/2010	-	Active	NO
3	U92100DL2007PLC170574	Indus Towers Limited	Additional director	06/01/2012	06/01/2012	-	Active	NO
4	U64200DL2007PLC207420	VODAFONE TOWERS LIMITED	Additional director	16/02/2012	16/02/2012	-	Active	NO
5	U51101DL2007PLC180238	VODAFONE INFRASTRUCTURE LIMITED	Additional director	16/02/2012	16/02/2012	-	Active	NO
6	U74900MH2008PLC183456	MOBILE COMMERCE SOLUTIONS LIMITED	Additional director	25/06/2012	25/06/2012	-	Active	NO
7	U72200DL1997PLC085764	VODAFONE SPACETEL LIMITED	Additional director	25/06/2012	25/06/2012	-	Active	NO

Name :

Mr. Suresh Bagrodia

Designation :

Additional director

Address :

Flat No.601/2, Green Acres, Building No.1/B, Lokhandwala Complex, Andheri –West, Mumbai – 400053, Maharashtra, India

Date of Birth/Age :

21.08.1967

Date of Appointment :

16.02.2012

DIN No.:

05201062

Name :

Mr. Sanjoy Subhod Mukherjee

Designation :

Additional director

Address :

B -1, Maharani Bagh, New Delhi – 110065, India

Date of Birth/Age :

07.11.1963

Date of Appointment :

25.06.2012

DIN No.:

03122800

Name :

Mr. Bhuvnesh Pratap Singh

Designation :

Additional director

Address :

Flat No.904, Olympus II, Prestige Acropolis No.20, House Road, Bangalore – 560029, Karnataka, India

Date of Birth/Age :

01.05.1960

Date of Appointment :

25.06.2012

DIN No.:

05307640

KEY EXECUTIVES

Name :	Mr. Pradeep Goel
Designation :	Secretary
Address :	No. D-408, Olive Block, Raheja Residency, 3^rd Block Koramangala, Bangalore - 560 034, Karnataka, India
Date of Birth/Age :	18.06.1970
Date of Appointment :	09.02.2010
PAN No:	AAEPG2140H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Central Depository Services (India) Limited – Beneficiary – Vodafone Essar Limited	264407500
Vodafone Mobile Services Limited	275199994
Vodafone Spacetel Limited Jointly with Vodafone Essar Mobile Services Limited	2
Vodafone Essar Cellular Limited Jointly with Vodafone Essar Mobile Services Limited	1
Vodafone Essar East Limited Jointly with Vodafone Essar Mobile Services Limited	1
Vodafone Digilink Limited Jointly with Vodafone Mobile Services Limited	1
Vodafone West Limited Jointly With Vodafone Mobile Services Limited	1
Total	539607500
Names of Shareholders	No. of Preference Shares
Vodafone Mobile Services Limited, India	200000
Vodafone West Limited , India	1600
Total	201600

As on 29.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Providing cellular mobile telephony services.
Products :	Postpaid Prepaid World Calling Card Handy phones Hutch PCO

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Indian Overseas Bank Limited, Chennai, Tamilnadu
• State Bank of India, Chennai, Tamilnadu
• State Bank of India, Delhi
• Tamilnadu Mercantile Bank Limited, Chennai, Tamilnadu
• Tamilnadu Mercantile Bank Limited, Delhi
• The Hongkong and Shanghai Banking Corporation Limited, M G Road, Mumbai – 400001

Facilities :

SECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working capital loans banks secured	34469.000	39003.600
Finance lease obligation long-term secured	100.300	100.400
Total	34569.300	39104.000
UNSECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working capital loans banks unsecured	9737.500	2567.800
Working capital loans others unsecured	16624.200	17475.200
Total	26361.700	20043.000

Banking Relations :	--
Financial Institution :	IL and FS Trust Company Limited, IL and FS Financial Centre, plot No. C – 22, Block, BA, Kurla Complex Bandra East, Mumbai – 400051, Maharashtra, India
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai-400018, Maharashtra, India
Tel No.:	91-22-228543330
Fax No.:	91-22-22024499/ 22024337
PAN.:	AACFD4815A
Holding Company :	Vodafone Essar Mobile Services Limited U64202DL1992PLC088087
Ultimate Holding Company:	Vodafone Group Plc Hutchison Telecommunications International Limited
Intermediate Holding Company:	Vodafone International Holding B.V Vodafone Essar Limited
Subsidiaries :	· Vodafone Essar Limited · Vodafone Essar Digilink Limited · Vodafone Essar East Limited · Vodafone Essar Mobile Services Limited · Vodafone Essar Gujarat Limited · Vodafone Essar Cellular Limited · Vodafone Essar Spacetel Limited · Vodafone Essar Infrastructure Limited · Vodafone Essar Shared Services Limited · Vodafone India Services Private Limited · Vodafone Ireland Marketing Limited · Vodafone Ireland Sales Limited · Vodafone Overseas Finance Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
540000000	Equity Shares	Rs.10/- each	Rs.5400.000 Millions
200000	0.1% Non Cumulative Non – convertible redeemable preference shares	Rs. 100/- each	Rs. 20.000 Millions
5000	Non-Cumulative Non-convertible Redeemable Preference shares	Rs. 1000000/ - each	Rs. 5000.000 Millions
	Total		Rs.  10420.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
539610000	Equity Shares	Rs.10/- each	Rs. 5396.100 Millions
	(Of the above 274200000 Equity Shares are held by Vodafone Essar Mobile Services Limited Which is a subsidiary of Vodafone Essar Limited And 264407500 Equity Shares are held by Vodafone Essar Limited Which pursuant to section 4(6) of the companies act, 1956, Vodafone Group Plcs, is the Ultimate Holding Company
200000	0.1% Non Cumulative Non – convertible redeemable preference shares	Rs. 100/- each	Rs. 20.000 Millions
	(All the above 0.1T Non cumulative Non-Convertible redeemable preference shares are issued pursuant to the sales and purchase agreement dated November 11, 2003 for Consideration other than cash)
1600	0.001% Non Cumulative Non-Convertible Redeemable Preference Shares	Rs. 1000000/- each	Rs. 1600.000 Millions
	Total		Rs. 7016.100 Millions

NOTES:

Of the above shares, 275,199,994 equity shares are held by the holding company, Vodafone Essar Mobile Services Limited (VEMSL) individually and 6 equity shares jointly with nominees and 264,407,500 equity shares are held by Vodafone Essar Limited. VEMSL is a subsidiary of Vodafone Essar Limited (Pursuant to section 4(6) of the Companies Act, 1956 Vodafone Essar Limited 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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		7016.100	7016.100	7016.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4259.200	59.700	21.300
4] (Accumulated Losses)		0.000	(581.200)	(3549.900)
NETWORTH		11275.300	6494.600	3487.500
LOAN FUNDS
1] Secured Loans		34569.300	39104.000	33780.900
2] Unsecured Loans		26361.700	20043.000	25277.800
TOTAL BORROWING		60931.000	59147.000	59058.700
DEFERRED TAX LIABILITIES		0.000	14.700	281.500
TOTAL		72206.300	65656.300	62827.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		64248.900	65599.300	62970.800
Capital work-in-progress		7530.000	6350.800	8774.200
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		110.700	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	10005.300	12775.100	6698.800
	Cash & Bank Balances	2724.700	1677.000	3146.800
	Other Current Assets	0.400	0.000	0.700
	Loans & Advances	12725.100	7822.300	8350.200
Total Current Assets		25455.500	22274.400	18196.500
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	32091.900	21713.600	19552.700
	Other Current Liabilities	6513.900	5655.100	6476.200
	Provisions	373.600	1199.500	1084.900
Total Current Liabilities		38979.400	28568.200	27113.800
Net Current Assets		(13523.900)	(6293.800)	(8917.300)
MISCELLANEOUS EXPENSES		13840.600	0.000	0.000
TOTAL		72206.300	65656.300	62827.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	96319.700	80515.700	69639.600
		Other Income	772.600	2760.500	1156.500
		TOTAL (A)	97092.300	83276.200	70796.100
Less	EXPENSES
		Manufacturing service costs	54420.000	45820.600
		Employee related expenses	2288.200	2145.200
		Administrative selling other expenses	16419.700	11476.500
		TOTAL (B)	73127.900	59442.300	50719.100
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23964.400	23833.900	20077.000
Less	FINANCIAL EXPENSES (D)		6466.700	6432.200	4523.100
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17497.700	17401.700	15553.900
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9834.300	12197.800	10190.800
	PROFIT BEFORE TAX (E-F) (G)		7663.400	5203.900	5363.100
Less	TAX (I)		294.7.700	2235.200	8003.300
	PROFIT AFTER TAX (G-I) (J)		4715.700	2968.700	(2640.200)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(581.200)	(3549.900)	(909.700)
	BALANCE CARRIED TO THE B/S		4134.500	(581.200)	(3549.900)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3860.300	2786.300	0.000
	TOTAL EARNINGS		3860.300	2786.300	0.000
	IMPORTS
		Capital Goods	7847.200	7723.400	12294.200
	TOTAL IMPORTS		7847.200	7723.400	12294.200
	Earnings Per Share (Rs.)		8.7	5.5	(4.9)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.86	3.56	(3.73)
Net Profit Margin (PBT/Sales)	(%)	7.96	6.46	7.56
Return on Total Assets (PBT/Total Assets}	(%)	8.54	5.92	6.60
Return on Investment (ROI) (PBT/Networth)		0.68	0.80	1.53
Debt Equity Ratio (Total Liability/Networth)		8.86	13.50	24.71
Current Ratio (Current Asset/Current Liability)		0.65	0.77	0.67

LOCAL AGENCY FURTHER INFORMATION

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

FINANCIAL PERFORMANCE

OPERATIONS:

The year ended March 2011 has been a good year for the Company. The favourable revenue performance was primarily due to both higher Outbound and Inbound Voice and greater Messaging and Data usage. During the year, the Company has widened its subscriber base by launch of various segmented products.

The company’s customer base grew to a landmark 38.81 million subscribers with a growth rate of 31.08% on a year on year basis. The Company continues to be the leading operator, having a Revenue market share of 16.71% (Includes fixed line revenue of all operators) as at 31 March 2011 in a very competitive multi-player market.

During the year 2010-11, 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 has added 2662 more cell sites to enhance its network coverage, closing with a total of 33,453 cell sites as at 31 March 2011. Mobile Number Portability has resulted in net addition of 94,478 customers as of March 2011.

DEMERGER OF LONG DISTANCE BUSINESS

During the year, the Company and the Transferee Company, Vodafone Essar Spacetel Limited has received Order of the Hon’ble Delhi High Court under Sections 391 to 394 of the Companies Act, 1956 for demerger of the National Long Distance (“NLD”) and International Long Distance (“ILD”), (together the Long Distance Business) from the company into Vodafone Essar Spacetel Limited. Subsequently, the Company and the Transferee Company have filed the necessary forms with the Registrar of Companies, N. C. T. of Delhi andHaryana. In accordance with the Scheme, the demerger would be effective upon receipt of approval of the Department of Telecommunications.

DEMERGER OF PASSIVE INFRASTRUCTURE ASSETS

During the year, the Company and the transferee company, Vodafone Essar Infrastructure Limited received Order of the Delhi High Court approving the Scheme of Arrangement for demerger of passive infrastructure assets. Subsequent to filing of the requisite forms by the Company and also by the transferee company with the Registrar of Companies, N. C. T. of Delhi & Haryana, the Demerger has become effective and t he appointed date of the demerger in terms of the Scheme of Arrangement is 1 April 2009.

OUTLOOK FOR 2011-12

Intense competition is expected to continue in FY-2011-12 both in the voice and data (2G and 3G) space. Though pricing action that was undertaken by new operators in FY2009-10 and 2010-11 to penetrate the market continued to impact revenues, the Company had the benefit of the first mover advantage in the 3G and data space. 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.

BUSINESS:

The Company is engaged in providing cellular mobile telephony services in the circles of Karnataka, Chennai, Andhra Pradesh (AP), Punjab, Uttar Pradesh West (UPW). and West Bengal (WB). The Company is also engaged in providing National Long Distance and International Long Distance services to all the 23 telecom circles. The Company operates in two major segments Mobile Telephone Service and Long Distance Services.

FIXED ASSETS

• Intangible Assets
• Computer Software
• Plant and Machinery
• Computer Hardware
• Furniture and Fixture
• Office Equipment
• Vehicles

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.55.38
UK Pound	1	Rs.86.75
Euro	1	Rs.67.06

INFORMATION DETAILS

Report Prepared by :

DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES/NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.