MIRA INFORM REPORT

Report Date :

15.06.2012

IDENTIFICATION DETAILS

Name :	AIR INDIA CHARTERS LIMITED
Registered Office :	21^st Floor, Air India Building, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.09.1971
Com. Reg. No.:	11-015328
Capital Investment / Paid-up Capital :	Rs.300.000 Millions
CIN No.: [Company Identification No.]	U62100MH1971GOI015328
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Ground Handling Services to Customer airlines.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (17)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a Government of India Company It is an established company having moderate track. There appears a huge accumulated loss recorded by the company. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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 DENIED BY

Name :	Mr. Kapil Aseri
Designation :	Account Head
Contact No.:	91-22-26265444
Date :	14.06.2012

LOCATIONS

Registered Office :	21^st Floor, Air India Building, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-28318826 / 22796496 / 26265444
Fax No.:	91-22-22023686
E-Mail :	aa.khandekar@airindia.in

DIRECTORS

As on 28.12.2011

Name :	Mr. Nandan Rohit
Designation :	Chairman Cum Managing Director
Address :	22B, Sterling Apartment, Peddar Road, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	27.01.1957
Date of Appointment :	12.08.2011
DIN No.:	02195896
Name :	Mr. Lakkadi Rajasekhar Reddy
Designation :	Director
Address :	B I Hudco Place August Kranti marg, New Delhi – 110049, Delhi, India
Date of Birth/Age :	22.03.1966
Date of Appointment :	08.08.2008
DIN No.:	02321204
Name :	Mr. Syed Nasir Ali
Designation :	Director
Address :	Quarter No.1, Type 5, Lodi Road, New Delhi – 110003, India
Date of Birth/Age :	27.04.2010
Date of Appointment :	04.05.1965
DIN No.:	03113580
Name :	Mr. Fali Homi Major
Designation :	Director
Address :	101, M S Apartments, 81, Robertson Road, Frazer Town, Bangalore – 560005, Karnataka, India
Date of Birth/Age :	29.05.1947
Date of Appointment :	10.05.2011
Name :	Mr. Srinivasa Venkat
Designation :	Director

KEY EXECUTIVES

Name :	Ms. Aditi Ashok Khandekar
Designation :	Secretary
Address :	202, Hurrah Citi of Joy J Dosa Road, Mulund West, Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	04.05.1965
Date of Appointment :	12.12.1996
Name :	Mr. Kapil Aseri
Designation :	Account Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.12.2011

Names of Shareholders	No. of Shares
Air India Limited	2999989
Air India Limited with Sharma Umesh Amod	1
Air India Limited with Srinivasa Venkat	1
Air India Limited with Srikrishnan V	1
Air India Limited with Chandra Sekhar S	1
Air India Limited with Anand Rakesh	1
Air India Limited with Unni K M	1
Air India Limited with Brara Deepak	1
Air India Limited with Khurana Anita	1
Air India Limited with Vaz F J	1
Air India Limited with Jadhav Arvind	1
Air India Limited with Kundra S K	1
TOTAL	3000000

Equity Share Break up (Percentage of Total Equity)

As on 28.12.2011

Category	Percentage
Government companies	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Providing Ground Handling Services to Customer airlines.
Product:	ITC Code No.	Product Description
	720	Air Transport carrier (of passengers and cargo)
Services:	· Passenger Carrier · Cargo Carrier · Handling Services

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· ICICI Bank

· HDFC Bank

· State Bank of India

Facilities :

(Rs. in Millions)

Unsecured Loan	As on 31.03.2011	As on 31.03.2010
From Banks	12891.900	10398.000
Debenture (Repayable within one year - Nil) (Previous Year NIL) (950 Unsecured, redeemable, non-convertible debenture of face value Rs. 1.000 millions each at interest rate of 9.38% ) (Guaranteed by Government of India to the extent of Rs.950.0 Millions; Previous Year - Rs.950.0 Millions)	950.000	950.000
Total	13841.900	11348.000

Banking Relations :	--
Auditors :
Name :	J P J Associates Chartered Accountant
Address :	Mumbai, Maharashtra, India
Legal Advisors:
Name :	M.V. Kini and Company

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.100/- each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares (The entire share capital is held by National Aviation Company of India Limited, A Company formed under the companies act, 1956 and its nominees)	Rs.100/- each	Rs.300.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		300.000	300.000	300.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		406.200	427.100	0.000
4] (Accumulated Losses)		(11059.400)	(7146.900)	(3540.000)
NETWORTH		(10352.900)	(6419.800)	(3240.000)
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		13841.900	11348.000	12337.300
TOTAL BORROWING		13841.900	11348.000	12337.300
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Future Reserve Obligation		22919.600	27374.900	25730.200
TOTAL		26408.600	32303.100	34827.500
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		33754.600	37564.800	32683.800
Capital work-in-progress		3.000	0.000	2586.500
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	435.400	384.400	397.400
	Sundry Debtors	383.200	792.900	287.300
	Cash & Bank Balances	499.000	247.900	188.900
	Other Current Assets	0.300	1.200	1.300
	Loans & Advances	964.600	1259.000	1562.500
Total Current Assets		2282.500	2685.400	2437.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3290.500	3645.300	1892.400
	Other Current Liabilities	6308.100	4265.300	956.500
	Provisions	32.900	36.500	31.300
Total Current Liabilities		9631.500	7947.100	2880.200
Net Current Assets		(7349.000)	(5261.700)	(442.800)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		26408.600	32303.100	34827.500

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	13112.800	13453.500	13733.200
		Other Income	403.800	565.100	430.300
		TOTAL (A)	13516.600	14018.600	14163.500
Less	EXPENSES
		Payment to and Provisions for Employees Including Crew Allowances	967.600	1127.900	1054.600
		Fuel and Oil Aircraft	7204.100	6573.100	7789.100
		Insurance Aircraft	157.600	153.100	120.700
		Navigation, Landing, Housing and Parking	1024.800	1162.000	931.400
		Hire and Lease Rental Charges	995.000	1609.300	1503.500
		Handling Charges	1310.000	1337.900	1283.100
		Material Consumed Aircraft	265.900	328.200	156.500
		Outside Repairs Aircraft	471.400	521.800	272.600
		Passenger Amenities	238.900	286.800	225.200
		Commission (Net)	116.600	94.900	135.800
		Communication Charges Reservation Systems Others	21.300 4.200	17.200 5.200	13.300 7.300
		Traveling Expenses Crew Others	273.000 32.200	224.000 30.400	195.000 45.800
		Other Expenses	155.200	320.000	517.000
		TOTAL (B)	13237.800	13791.800	14250.900
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		278.800	226.800	(87.400)
Less	FINANCIAL EXPENSES (D)		2297.800	2051.200	1780.000
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(2019.000)	(1824.400)	(1867.400)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1897.900	1782.500	1535.500
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(3916.900)	(3606.900)	(3402.900)
Less	TAX (I)		(4.700)	0.000	(6.900)
	PROFIT/(LOSS) AFTER TAX (G-I) (J)		(3912.200)	(3606.900)	(3396.000)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(7146.900)	(3540.000)	(60.600)
	BALANCE CARRIED TO THE B/S		(11059.100)	(7146.900)	(3456.600)
	Earnings/Loss Per Share (Rs.)		(1304.06)	(1202.30)	(1132.00)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(28.94)	(25.73)	(23.98)
Net Profit Margin (PBT/Sales)	(%)	(29.87)	(26.81)	(24.78)
Return on Total Assets (PBT/Total Assets}	(%)	(1.72)	(8.96)	(9.69)
Return on Investment (ROI) (PBT/Networth)		(0.38)	(0.56)	(1.05)
Debt Equity Ratio (Total Liability/Networth)		(0.93)	(1.24)	(0.89)
Current Ratio (Current Asset/Current Liability)		0.24	0.34	0.85

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors (Includes Rs.246.600 Million due to Air India Limited Previous Year Rs.713.400 Million)	3290.500	3645.300	1892.400
Total	3290.500	3645.300	1892.400

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	Yes
10) Designation of contact person	Yes
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	No
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

REVIEW OF PERFORMANCE

The highlights of the Physical and Financial Performance of the Company for 2010-11 vis-a-vis 2009-10 are as under: The Scheduled Services Revenue, before revenue sharing with the holding company Air India Limited (AI) declined marginally from Rs.17103.600 Millions in 2009-10 to Rs.17082.100 Millions in 2010-11. Despite a 7.5% increase in yield, the lower revenue was primarily due to a 4.1 % decline in the number of single flights, which was mainly due to loss of one aircraft in Mangalore Crash on 22nd May 2010.

During the year, the Total Revenue of the Company, after revenue sharing with AI, was Rs.13516.600 Millions as compared to Rs.14018.600 Millions for the year 2009-10. representing a decrease of approximately 3.58 % (the total revenue includes profit of Rs.389.600 Millions due to retirement of one aircraft at Mangalore, as stated above). The total expenditure of the Company was Rs.17433.500 Millions as against Rs. 17625.500 Millions for the year 2009-10, representing a marginal decrease of 1.09 %.

Operating expenses decreased by Rs.438.600 Millions due to the decrease in the number of flights operated in 2010-11 and returning three very first dry leased aircraft. However, inspite of reduction in flying hours during 2010-11, the total operating cost has not reduced proportionately, due to increase in fuel rates by 17% (Rs.631.000 Millions). The Net Loss before taxation during 2010-11 was Rs.3916.900 Millions as against Rs. 3606.900 Millions in 2009-10.

OPERATIONS

Air India Express ended 2009-10 with a total of 203 flights per week. The same schedule was continued in Summer 2010. Despite the unfortunate loss of VT-AXV on May 22, 2010 this schedule was maintained for 3 months.

In September 2010, in order to remove dead legs and reduce cost of operation, an aircraft base was created in Tiruchirapalli and one aircraft was moved from Chennai to Tiruchirapalli. This aircraft operated direct point-to-point flights to Singapore and Dubai. This eliminated the Chennai-Tiruchirapalli dead leg which resulted in cost reduction of about Rs. 62.000 Millions annually. At the same time Chennai-Kuala Lumpur flight was rerouted as Chennai-Tiruchirapalli-Kuala Lumpur, in order to provide a direct flight from Tiruchirapalli to Kuala Lumpur and recapture the market from South East Asian carriers who had monopolized the market. This flight also provided

a night time connection from Chennai to Singapore via Tiruchirapalli, in addition to the daily Chennai-Singapore flight in the afternoon.

However, from the end of August 2010, Air India Express was forced to curtail operations due to an acute shortage of cabin crew. Despite this, Air India Express operated almost all of its scheduled flights up to September 20, 2010 which constituted the peak period for return travel to Gulf at the end of the Summer vacation. Some flights were operated with Air India aircraft. After September 20, 2010, in the traditional lean season, some flight operations were curtailed. Air India Express was forced to reduce its flights to 166 flights per week. As an immediate measure, frequency was curtailed on several routes instead of withdrawing operations from any sector. Flights on the Gulf route were curtailed as it was low season, rather than South East Asia which was in its shoulder/peak season due to Dassera and Diwali holidays. Passengers of the curtailed flights were accommodated on alternate Air India/Air India Express flights or given full refund according to their preference.

Walk-in interviews for recruiting Cabin crew were conducted on August 24, 2010 in Kochi.

Winter 2010 commenced with a curtailed schedule comprising 156 flights per week due to continued Cabin Crew restrictions. In this schedule, loss-making flights such as Dhaka-Kolkata-Bangkok, Mumbai-Dhaka were withdrawn. Frequency of operation was reduced on some routes like Chennai-Singapore, Kozhikode-Muscat, Kuwait etc. A second aircraft was placed in Mangalore from Delhi. The thrice weekly Kozhikode-Managalore-Dubai flight was rerouted as Mangalore-Dubai direct flight, thereby reducing the cost of operation. Amritsar-Abu Dhabi-Muscat flights were operated with Mangalore based aircraft as Mangalore-Abu Dhabi-Muscat-Amritsar vv flight. This resulted in removal of the Delhi-Amritsar dead leg, resulting in an annualised cost reduction of about Rs. 70.000 Millions.

Curtailed flights were re-introduced in a phased manner from December 2010, as and when the crew completed their mandatory training and became available for flying. All Kerala-Gulf flights were reinstated by February 14, 2011. Details on the number of flights

Restored are given below:

Month	No. of Flights per week	Additional Flights per week
November 2010	156	--
December 2010	163	6
January 2011	170	7
February 2011	183	13
Total Flights Restored		33

Dhaka-Kolkata-Bangkok flights were not reintroduced and the frequency of day-time Chennai-Singapore flight was maintained at 4 flights per week due to their continued poor performance. Mumbai-Dhaka flights were not reintroduced as they were no longer required by Air India, which had shifted its hub and thereby most of its international operations to New Delhi. Kozhikode-Mangalore-Dubai vv flight was continued as Mangalore-Dubai vv and Amritsar-Abu Dhabi-Muscat was continued on the Mangalore based aircraft to reduce cost of operation.

CONTINGENT LIABILITY:

a) The Company has employed various staff on Contractual basis and hence there is a Contingent Liability to the extent of the unexpired contract period. The amount for the same cannot be ascertained.

b) The Company has received notices from Customs and Excise Department towards applicability of duty on consumption of fuel on domestic flights. The Company has accounted the claims for the same during the financial year for Rs.88.500 Million. (Previous Year Rs.36.500 Million)

c) The Company has also received show cause notices from Directorate General of Central Excise Intelligence, on applicability of Service Tax on various fees paid on External Commercial Borrowings(ECB) loans (under Banking and Financial Services), on Management, Maintenance and Repair Service on leased aircraft and, as recipient of service from Non-Resident Service Providers. The Service Tax liability for the period 2005 to 2010 as per the show cause notice dated October 18,2010 is Rs.279.730 Million (Previous Year Rs.32.020 Million) has not been provided as the company has referred the matter to the Ministry to waive the applicability of Service Tax. The company is also representing the matter with the Service Tax department. The liability on account of interest and penalty is not considered above since the same has not been charged/ demanded in the show cause notice.

d) Letter of Credits issued by the Bank outstanding amounting to Rs.535.100 Million (Previous Year: Rs.673.500 Million).

Fixed Assets:

· Aircraft Fleet and Equipment

· Vehicles

· Plant and Machinery

· Furniture and Fixtures

· Office Appliances and Equipments

· Computer Systems

· Ramp Equipments

AS PER WEBSITE

PRESS RELAPSE

DGCA favours financial autonomy for AI Express

New Delhi Jan 31, 2012, The Directorate General of Civil Aviation (DGCA) has recommended giving financial autonomy to Subject, the company which runs Air India Express, the low-cost brand of Air India operating in the international sector.

“From a safety perspective, it is imperative that AICL be given financial autonomy,” said a financial audit report done by the aviation regulator.

The DGCA decided to go for a financial audit of all the airlines after Kingfisher Airlines grounded planes and cancelled flights without prior information. A safety audit had raised issues on the functioning of Kingfisher and AI Express. The audit of Air India is currently on.

AI Express is the international low-cost carrier subsidiary of the government carrier, and operates in West Asian and Southeast Asian countries with its base in central Kerala’s Kochi. The airline operates 204 flights a week and connects 14 international destinations

The airline, with an equity base of Rs.300.000 Millions, operates 21 Boeing 737-800 aircraft. Of the 21 aircraft, 17 are owned by the company, while the rest are on lease.

AI Express has accumulated losses of Rs.11050.000 Millions and is estimated to incur losses of Rs.4300.000 Millions in the current financial year. It has a debt of over Rs.36870.000 Millions, comprising Rs.23870.000 Millions (long term for aircraft acquisition) and Rs.13000.000 Millions (short term).

According to an agreement with parent company Air India, the airline shares 25 per cent of the revenue with the latter. It is projected to share Rs.4300.000 Millions for 2011-12 on revenue of Rs.17000.000 Millions.

AI Express has to depend on its parent company for pilots and other administrative staff. “AI Express is considered the training ground for AI pilots,” said a senior AI official, who did not want to be identified. “The airline does not have its own pilot cadre. The shortage will continue unless it creates its own cadre of pilots.”

AI Express, the official added, is financially much stable than its parent company, which is under huge losses. “AI Express is estimated to make losses of Rs.4300.000 Millions, and that is exactly the amount it will pay to Air India,” the official said. “If one removes that, the airline will be a profit making company.”

Air India is under huge losses of Rs.200000.000 Millions and a debt of Rs.430000.000 Millions. The airline is also working on debt restructuring plans with 26 banks that had lent to the carrier.

It has also asked the government to infuse around Rs.54000.000 Millions more in the current financial year. The government has already infused Rs.32000.000 Millions (Rs.12000.000 Millions infused in 2011-12) in the airline.

Air India Plans to Raise Upto USD 1.1 Billion

May 08, 2012 State-owned Air India plans to raise upto USD 1.1 billion including USD 300 million for its subsidiary Air India Charters Ltd to fund aircraft acquisition and meet its working capital requirements

The airline has invited proposals from the banks and financial institution to raise these funds.

"Air India invites offers from banks/financial institutions to arrange bridge financing upto USD 500 million for induction of 4 B787 aircraft," according to a document posted on the airline's website.

The airline needs interim bridge financing for a 6-12 month period to acquire four Dreamliner aircraft, which are to be delivered to it between June December 2012, it said.

However, the funds sought to be raised would not be covered by a sovereign guarantee and instead the airline would offer the aircraft or some other equivalent collateral as security, the document stated, adding airline would repay the loan after selling and leasing back the four planes.

Besides, the airline has also floated an "invitation of offers" for raising funds upto USD 600 million through the external commercial borrowing (ECB) route to meet its working capital requirements.

It is seeking to raise funds for at least three-year period at either a fixed or floating rate, according to the offer document.

Of this, upto USD 300 are to be raised for its wholly-owned subsidiary, Air India Charters, which operates its low-cost international arm, Air India Express.

The Government had in April allowed domestic carriers to raise up to USD 300 million each from the overseas markets during this fiscal to meet working capital needs.

Last month, the government had approved Air India's turnaround plan and a financial restructuring plan (FRP) which involves a Rs 30,000-crore equity infusion by the government over the next eight-year period and a debt recast (CDR) of Rs 21,200 crore.

The financial restructuring plan will provide relief to Air India from its debt servicing obligations on working capital loans by way of substantial reduction in interest outgo, while giving it necessary time to improve its operational efficiency.

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.55.79
UK Pound	1	Rs.86.37
Euro	1	Rs.70.07

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	3
--CREDIT LINES	1~10	-
--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		17

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.