MIRA INFORM REPORT

Report Date :

26.02.2013

IDENTIFICATION DETAILS

Name :	LOOP MOBILE (INDIA) LIMITED (w.e.f. 09.03.2009)
Formerly Known As :	BPL MOBILE COMMUNICATIONS LIMITED POWER SYSTEMS AND PROJECTS PRIVATE LIMITED
Registered Office :	127, Manmala Tank Road, Taikalwadi, Mahim (West), Mumbai – 400016, Maharashtra
Country :	India
Financials (as on) :	31.03.2012 (Profit and Loss Account)
Date of Incorporation :	30.12.1975
Com. Reg. No.:	11-193684
Capital Investment / Paid-up Capital :	Rs. 1045.504 millions
CIN No.: [Company Identification No.]	U29299MH1975PLC193684
TAN No.: [Tax Deduction & Collection Account No.]	MUMB06449C
PAN No.: [Permanent Account No.]	AAACB9986H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Cellular Mobile Telephone Services in Mumbai, Navi Mumbai and Kalyan Telecom Districts.
No. of Employees :	Information denied by the management

RATING & COMMENTS

MIRA’s Rating :

Ca (18)

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 well established company in the Indian mobile industry and faces cut throat competition from fellow players such as Vodafone, Airtel, Tata etc. the promoters are alleged to be involved in 2G SCAM and there appear huge accumulated losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payments are slow. The company can be considered for business dealing on a safe and secured trade terms and condition.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED BY

Name :	Mr. Ranjan Gadgil
Designation :	Finance Head
Contact No.:	91-22-24371777 / 24323777
Date :	25.02.2013

LOCATIONS

Registered Office :	127, Manmala Tank Road, Taikalwadi, Mahim (West), Mumbai – 400 016, Maharashtra, India
Tel. No.:	91-22-24323777 / 24371777
Fax No.:	Not Available
E-Mail :	secretarial@loopmobile.in loopsecretarial@gmail.com priyadarshi.sidharth@loopmobile.in
Website :	http://www.loopmobile.in
Gallery :	Located at : · Andheri · Borivali · Chembur · Churchgate · Dombivali · Fort · Ghatkopar · IRLA · Kandivali · Lokhandwala · Mahim · Malad · Mira-Bhayander · Mohammed Ali Road · Mulund · Opera House · Panvel · Santacruz · Thane · Vashi · Vile Parle

DIRECTORS

As on 27.09.2012

Name :	Mr. Sandip Umananda Basu
Designation :	Managing director
Address :	201, Crystal Apartments, Plot No. 31, Vallabh Nagar CHS Limited, CTS No. 191, N S Road, No. 3, JVPD Scheme, Vile parle, Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	24.01.1961
Qualification :	CA, ICWAI
Date of Appointment :	26.08.2009
DIN No.:	01281486
Name :	Mr. Nalin Khaitan
Designation :	Director
Address :	Villa No. 17, Bin Hamoodah Villas, Plot No. P - 669, Jumeira, P. 0. Box - 24369, Dubai, United Arab Emirates
Date of Birth/Age :	13.12.1988
Qualification :	MBA
Date of Appointment :	24.03.2011
DIN No.:	02695218
Name :	Mr. Prem Gul Rajani
Designation :	Nominee director
Address :	11, Palekar Chambers, 4^th Floor Dhobi Taleo, Mumbai - 400002, Maharashtra, India
Date of Birth/Age :	30.01.1967
Qualification :	Advocate
Date of Appointment :	03.12.2004
DIN No.:	00062833
Name :	Mr. Ashok Tyagi
Designation :	Director
Address :	E - 130, Greater Kailash -1, New Delhi – 110048, India
Date of Birth/Age :	01.01.1954
Date of Appointment :	26.06.2012
DIN No.:	00784563
Name :	Mr. Thekkekara Sathisan
Designation :	Director
Address :	C/57 5^th Floor, Tarapore Garden, Oshiwara, Andherl (West), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	08.01.1962
Date of Appointment :	07.03.2012
DIN No.:	02465424
Name :	Mr. Balasubramanian Swaminathan
Designation :	Director
Address :	Flat No A - 202, 2^ndFloor, The Bliss Plot No 2, 4 and 5, Sector No 8 / B, CBD Belapur, Navi Mumbai – 400614, Maharashtra, India
Date of Birth/Age :	18.07.1957
Date of Appointment :	01.03.2012
DIN No.:	03114430

KEY EXECUTIVES

Name :	Mr. Ranjan Gadgil
Designation :	Finance Head
Name :	Mr. Rahul Singh
Designation :	Secretary
Address :	Flat No. 133, C Wing, 7^th Floor, Mira Darshan Complex, MTNL Road, Mira Road (East), Thane – 401 107, Maharashtra, India
Date of Birth/Age :	15.08.1977
Date of Appointment :	21.01.2012
PAN No.:	BFCPS3619M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2012

Names of Shareholders	No. of Shares
Loop Mobile Holdings India Limited, India	72346291
Kerala State Industrial Development Corporation Limited, India	2000
Capital Global Limited, Mauritius	32202123
P R Shreekumar	1
Sandip Basu	1
Harish Kapoor	1
Pawan Arora	1
TOTAL	104550418

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	30.80
Bodies corporate	69.20
Total	100.00

BUSINESS DETAILS

Line of Business :	Providing Cellular Mobile Telephone Services in Mumbai, Navi Mumbai and Kalyan Telecom Districts.
Services :	Cellular Telephone Services

GENERAL INFORMATION

No. of Employees :

Information denied by the management

Bankers :

· Yes Bank Limited, Nehru Centre, 9^th Floor, Discovery of India, Dr. A.B. Road, Worli, Mumbai – 400 018, Maharashtra, India

· Axis Bank Limited, 2^nd Floor, Axis House, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai – 400 025, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Other debt secured	NA	5750.000
Total	NA	5750.000

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Maker Towers, "E" Cuffe Parade, Mumbai – 400005, Maharashtra, India
PAN No.:	AACFD4815A
Ultimate Holding Company (As on 31.03.2011):	· Santa Trading Private Limited (upto 16th February, 2010) (there are no transactions with the company) · Loop Mobile Holdings India Limited (Formerly BPL Communications Limited) (From 16th February, 2010)
Holding Company (As on 31.03.2011):	· Loop Mobile Holdings India Limited (upto 15th February, 2010) · Loop Telecommunications Holdings India Limited (from 16th February, 2010) (there are no transactions with the company)
Fellow Subsidiary Company (As on 31.03.2011):	· Loop Telecommunications Holdings India Limited (upto 15th February, 2010)
Subsidiary Company (As on 31.03.2011):	· Loop Telecom Limited [U72200DL1997PLC085754] · Loop Telecom Infrastructure Limited [U64203MH2007PLC176486]

CAPITAL STRUCTURE

As on 27.09.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
129448200	Equity Shares	Rs. 10/- each	Rs. 1294.482 millions
6551800	Preference Shares	Rs. 10/- each	Rs. 65.518 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
104550418	Equity Shares	Rs. 10/- each	Rs. 1045.504 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1045.504	1045.504
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		6353.336	5397.117
4] (Accumulated Losses)		(4224.280)	(3579.590)
NETWORTH		3174.560	2863.031
LOAN FUNDS
1] Secured Loans		5750.000	6500.000
2] Unsecured Loans		683.319	478.102
TOTAL BORROWING		6433.319	6978.102
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		9607.879	9841.133
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7589.632	6620.858
Capital work-in-progress		198.427	769.325
Advance for Capital Expenditure		0.000	0.000
INVESTMENT		2378.650	2380.150
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.556	6.340
	Sundry Debtors	685.026	607.799
	Cash & Bank Balances	363.354	609.906
	Other Current Assets	0.000	0.000
	Loans & Advances	1834.491	1824.682
Total Current Assets		2889.427	3048.727
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2213.891	1640.157
	Other Current Liabilities	1194.536	1307.194
	Provisions	39.830	30.576
Total Current Liabilities		3448.257	2977.927
Net Current Assets		(558.830)	70.800
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		9607.879	9841.133

Note: Balance Sheet for the year 2012 is not available only Profit and Loss is available

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	7114.216	6714.060	6118.573
		Other Income	45.003	46.965	143.690
		TOTAL (A)	7159.219	6761.025	6262.263
Less	EXPENSES
		Purchases of stock-in-trade	28.468	36.214
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	2.302	(0.217)
		Employee benefit expense	480.578	412.940
		Other expenses	4941.119	4836.394
		TOTAL (B)	5452.467	5285.331	4840.183
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1706.752	1475.694	1422.080
Less	FINANCIAL EXPENSES (D)		988.883	852.000	884.803
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		717.869	623.694	537.277
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1249.080	1268.383	1170.462
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(531.211)	(644.689)	(633.185)
Less	TAX (H)		0.000	0.000	0.549
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(531.211)	(644.689)	(633.734)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(4224.278)	(3579.589)	(2945.855)
	BALANCE CARRIED TO THE B/S		(4755.489)	(4224.278)	(3579.589)
	EARNINGS IN FOREIGN CURRENCY
		Roaming Income		379.582	404.499
		Transit SMS		114.364	97.698
	TOTAL EARNINGS		NA	493.946	502.197
	IMPORTS
		Capital Goods	NA	NA	1386.712
	Earnings/(Loss) Per Share (Rs.)		(5.08)	(6.17)	(6.06)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(7.42)	(9.54)	(10.12)
Net Profit Margin (PBT/Sales)	(%)	(7.46)	(9.60)	(10.35)
Return on Total Assets (PBT/Total Assets}	(%)	NA	(6.15)	(6.55)
Return on Investment (ROI) (PBT/Networth)		NA	(0.20)	(0.22)
Debt Equity Ratio (Total Debt/Networth)		NA	2.03	2.43
Current Ratio (Current Asset/Current Liability)		NA	0.84	1.02

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars		31.03.2011	31.03.2010
	(Rs. In Millions)
Creditors due small micro enterprises		0.000	0.000
Creditors due others		2213.891	1640.157
TOTAL		2213.891	1640.157

Sr. No.	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	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 involved in	----
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Note: The registered office of the company has been shifted from XL-5115, 2^nd Floor, Ashish Building, Shanmugham Road, Ernakualm District, Cochin – 682031, Kerala, India to the present w.e.f. 09.04.2009

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Loans subsidiaries unsecured	NA	200.000
Other debt unsecured	NA	483.319
TOTAL	NA	683.319

CONTINGENT LIABILITIES NOT PROVIDED FOR:

(As on 31.03.2011)

(Rs. in millions)

Particulars	31.03.2011	31.03.2010
Counter guarantees given to bankers against guarantees issued by them	494.748	501.874
a. Demand on account of service tax on value of SIM cards sold, made by the Commissioner of Central Excise, Mumbai, on which sales tax has already been paid.	43.581	43.581
b. Demand on account of Licence fees made by the Department of Telecommunications (DOT), arisen in view of the DOT having allowed deductions for PSTN charges and Roaming charges on actual payment basis while arriving at the Adjusted Gross Revenue for the purpose of determining the Licence fees payable. Note:- The Company and the Cellular Operators Association of India have represented to the DOT inter alia to allow these deductions on accrual basis instead of actual payment basis.	50.317	50.317
c. Demand on account of Interest and Penalty made by DOT on additional licence fees payable; the dues in respect of such licence fees was settled by encashment of bank guarantee by the DOT. The Company had received the judgment in its favour from Telecom Disputes Settlement And Appellate Tribunal (TDSAT) on 11^th February, 2010. During the year, the DOT has appealed against this judgment in the Supreme Court of India.	386.756	--

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29299MH1975PLC193684
Name of the company	LOOP MOBILE (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	127, Manmala Tank Road, Taikalwadi, Mahim (West), Mumbai – 400016, Maharashtra, India Email ID: loopsecretarial@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	10083097
Type of charge	Book Debts Uncalled share capital Immovable Property Book Debts Movable Property Others (clause no. e & f of securities created of the agreement)
Particular of charge holder	Axis Bank Limited, 2^nd Floor, Axis House, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai – 400025, Maharashtra, India Email ID: debenturetrustee@axistrustee.com
Nature of description of the instrument creating or modifying the charge	Link cum Supplementary Document executed by the Company in favour of Axis Bank Limited (Security Trustee) for enhancing the overdraft facility of Rs. 160.000 millions to Rs. 400.000 millions out of the non fund based limits of Rs. 1000.000 millions without any further changes in the terms and conditions of the said non fund based limits.
Date of instrument Creating the charge	26.12.2012
Amount secured by the charge	Rs. 8.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Schedule VIII of Common Rupees Facility Agreement dated 29^th December, 2007. Terms of Repayment As per Schedule IV of Common Rupee Facility Agreement. Extent and Operation of the charge Pari Passu first charge on the properties of the Company (as described in Schedule I and II of the Link cum Supplementary Document attached herewith) to secure the due repayment, interest, additional interest, commission etc towards the facilities of the Company aggregating Rs. 8500.000 millions.
Short particulars of the property charged	As per Schedule I and Schedule II of the Link cum Supplementary Document dated 26^th December, 2012.
Date of latest modification prior to the present modification	28.09.2012
Particulars of the present modification	Link Cum Supplementary Document executed by the Company in favour of AXIS Bank Limited (Security Trustee) for enhancing the Overdraft facility from Rs. 160.000 millions to Rs. 400.000 millions out of the non fund based limits of Rs. 1000.000 millions without any further changes in the terms and conditions of the said non fund based limits.

FIXED ASSETS:

Tangible Assets:

· Land

· Buildings

· Plant and Machinery

· Network Equipment

· Network Towers

· Office Equipments

· Computer and Peripherals

· Furniture and Fixtures

· Vehicles

Intangible Assets:

· Software

· Licence Fees

PRESS RELEASE

2G SPECTRUM SCAM: LOOP TELECOM SEEKS OUT OF COURT SETTLEMENT WITH GOVERNMENT

Feb 11, 2013

NEW DELHI: The Ruias of Essar Group and their relatives, the Khaitans, promoters of Loop Telecom, who have been charged with fraud and conspiracy by the country's top investigating agency, have sought to reach a compromise with the government to end a criminal trial in which they are embroiled.

The company's CEO, Sandip Basu, wrote to Telecom Minister Kapil Sibal on December 12, requesting him to consider compounding the alleged offence so as to avoid unnecessary litigation while adding that the charges it faced were "essentially of a civil flavour and had no element of public interest attached to them". He suggested that the law ministry's view on the proposal be sought.

Loop said the ongoing criminal proceedings were causing "great damage to its reputation and businesses", and it therefore wanted to "compound the alleged offences and put an end to these proceedings".

The term compounding refers to an agreement between the accused and the state to end legal proceedings through payment of a fine or fee. Compounding terminates all criminal proceedings against the alleged offender.

This practice is widely followed, in India and abroad, in case of violation of securities laws.

The Loop Telecom spokesperson said the proposal to the government did not entail any admission of guilt.

"As per the provisions of the CrPC and recent Supreme Court judgements, these charges are capable of being compounded." "The company's request to the government to consider compounding does not amount to admission of any violation. The legal provisions relating to compounding do not have any requirement that a violation be admitted. Loop Telecom and its promoters have also filed claims against the government in various forums, including the TDSAT, and are also pursuing international arbitration under the India-Mauritius investment protection treaty for recovery of investments made by them and are also claiming damages.

Loop Telecom believes that a comprehensive settlement with the government would involve appropriately dealing with these claims as well as with the ongoing criminal trial," the spokesperson added.

A telecom department official said DoT is yet to act on Loop's request that its proposal be sent to the law ministry regarding the legal tenability. Minister of State in the Prime Minister's Office V Narayanasamy said he was not aware of Loop's communication as the telecom department had not forwarded any such letter to the law ministry.

The Central Bureau of Investigation has filed charges against industrialists Ravi Ruia and Anshuman Ruia, promoters of Essar Group; its director for strategy and planning Vikas Saraf; and Loop Promoters IP Khaitan and Kiran Khaitan. CBI had charged the Ruias, Khaitans, Saraf and three telcos - Loop Telecom Pvt Ltd, Loop Mobile India Ltd and Essar Teleholding - of cheating the telecom department to secure mobile permits in 2008.

In CBI's version of events, they had done this by violating a rule, called Clause 8, that bars a telco from holding more than 10 per cent in another.

Ruais-controlled Essar Group owned more than 10 per cent equity stake in Loop Telecom while simultaneously holding 33 per cent in Vodafone Essar, which violated the clause, the probe agency had alleged in the chargesheet.  

The nub of its charges is that Loop was a 'front' for Essar to secure mobile permits it was not entitled to. The charges were filed under Section 120 B, which defines criminal conspiracy, and Section 420, cheating, of the Indian Penal Code. The five officials could potentially face a prison sentence of up to seven years in case of an unfavourable verdict.

"The charges filed by CBI against Loop and Essar do not contain any allegation of offence under Prevention of Corruption Act or any charge of criminal misconduct. The charges framed show that this is merely an allegation of wrongful gain to Loop and Essar being obtained by misrepresentation of compliance under Clause 8 of the UASL guidelines and as such is of a predominantly civil nature," Loop said in a December 12 communication to the telecom department.

Loop in its letter has also reiterated its denial of the CBI charges against it, stating that the Essar Group had held only 2.15 per cent in Loop during the time of its applications for mobile permits, and therefore, was not in violation of Clause 8. It also pointed out that the corporate affairs ministry had confirmed this to the telecom department on April 2011.

While charges were filed under Section 120 B, which defines criminal conspiracy, Loop said the recent Supreme Court judgement 'allowed criminal cases having overwhelmingly and predominantly civil flavour to stand on a different footing for quashing...'

Further, Clause 8 of telecom guidelines, which the company is accused of violating, was vague and ambiguous, and this is best illustrated by the fact that different departments of the government had reached different conclusions based on the same set of facts, Basu said in the letter to Sibal.

The corporate affairs and law ministries had found no violations, but CBI had overruled the opinion of these ministries.

Loop also argued that there was no "wrongful loss to the government as a result of the offence as the government would have obtained the same price for the licences from any other applicant". "No wrongful gain to Loop/Essar can be said to have accrued as well as these licences have in any case been cancelled by the Supreme Court", its letter added.

The company spokesperson, as well as Loop's communication, added that a settlement "would send out a message to the global investor community that India is not interested in needless litigation".

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] 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.54.04
UK Pound	1	Rs.81.80
Euro	1	Rs.71.41

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		18

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.