MIRA INFORM REPORT

Report Date :

29.01.2013

IDENTIFICATION DETAILS

Name :	VODAFONE WEST LIMITED (w.e.f.15.10.2011)
Formerly Known As :	VODAFONE ESSAR GUJARAT LIMITED (w.e.f.28.06.2007) FASCEL LIMITED
Registered Office :	6th Floor, Sakar II, Ellisbridge 6, Ahmedabad – 380006, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.03.1995
Com. Reg. No.:	04-035282
Capital Investment / Paid-up Capital :	Rs. 5000.000 Millions
CIN No.: [Company Identification No.]	U32100GJ1995PLC035282
PAN No.: [Permanent Account No.]	AAACF1190P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in providing mobile telephony services in the Gujarat Circle.
No. of Employees :	Information declined by management

RATING & COMMENTS

MIRA’s Rating :

A (62)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 139000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘Vodafone India Limited’. It is a well-established and a reputed company having a fine track record. It is a leading Indian mobile operator. There appears some dip in the profits earned during 2012. However, financial position of the company appears to be sound and healthy. Directors are reported as well-experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active. Payment terms are reported as regular and as per commitments. The company can be considered for business dealings at usual 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Short term rating : A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	September 27, 2012

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 DECLINED

MANAGEMENT NON CO-OPERATIVE (91-79-71715000)

LOCATIONS

Registered Office :	6th Floor, Sakar II, Ellisbridge 6, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26578792/ 26577228
Fax No.:	91-79-26575990
E-Mail :	ashesh.thakore@vodafone.com pushkaraj.joshi@vodafone.com
Website :	www.vodafone.com www.vodafone.in
Branch and Zonal Offices :	Located at: Ø Ahmedabad Ø Baroda Ø Bhavnagar Ø Gandhidham Ø Jamnagar Ø Junagadh Ø Mehsana Ø Rajkot Ø Surat Ø Vapi Ø Godhra

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Venkatesh Viswanathan
Designation :	Director
Address :	D-6, Krishnalaya, 33-1/34, N.S. Mankikar Marg, Sion Chunnabhatti, Mumbai - 400022, Maharashtra, India
Date of Birth/Age :	08.07.1968
Qualification :	CS , CWA, MBA-Finance (IIM-A)
Date of Appointment :	09.07.2010
DIN No.:	03122706
Name :	Mr. Dilip Pal
Designation :	Director
Address :	Flat No. 701/702, Khar Pushparaj CHS. Limited, Plot No.5, 16th Road, Khar West, Mumbai – 400052, Maharashtra, India
Date of Birth/Age :	15.02.1966
Qualification :	CA, B.Com(H), M.Com
Date of Appointment :	16.02.2012
DIN No.:	05201144
Name :	Mr. Naveen Lal Chopra
Designation :	Director
Address :	Bharat Bhuvan, 2nd Floor, 711, Linking Road, Khar West, Mumbai - 400052, Maharashtra
Date of Birth/Age :	25.04.1960
Date of Appointment :	25.06.2012
DIN No.:	05307614
Name :	Mr. Rohit Adya
Designation :	Director
Address :	Flat No. 4, Narendra Bhuvan, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra
Date of Birth/Age :	06.09.1956
Date of Appointment :	25.06.2012
DIN No.:	05308871

KEY EXECUTIVES

Name :	Mr. Ashesh Thakore
Designation :	Secretary
Address :	1, Sumeru Apartment, 13, Pritam Nagar, Ellis Bridge, Ahmedabad - 380006, Gujarat, India
Date of Birth/Age :	12.10.1965
Date of Appointment :	11.03.2010
PAN No.:	AAIPT6149D
Name :	Mr. Brajesh Bajpai
Designation :	Manager
Address :	B-51, Riviera Elegance, Opposite Sampada Bunglow, Off. New Corporate Road, Near Prahlad Nagra, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	13.08.1971
Qualification :	B. E./ M.B.A.
Date of Appointment :	01.04.2012
PAN No.:	AAPPB9934P
Name :	Pushpinder Singh Gujral
Designation :	Vice President - Sales and Marketing Operations
Date of Birth/Age :	41 year
Qualification :	S.S.C./H.S.C./B. E./M.M.S.
Experience :	19 year(s) and 8 month
Name :	Ranjan Mishra
Designation :	Associate Vice President-Human Resources
Date of Birth/Age :	42 year
Qualification :	Post graduate
Experience :	8 year(s) and 6 month
Name :	P Mani
Designation :	Associate Vice President-Finance
Date of Birth/Age :	46 year
Qualification :	S.S.C./H.S.C./C. A./B. Com.
Experience :	23 year(s) and 8 month
Name :	Zahir Wykes
Designation :	VP – Retail – Business Experience
Date of Birth/Age :	46 year
Qualification :	S.S.C./H.S.C./Post Graduate Diploma/B. Com.
Experience :	25 year(s) and 1 month
Name :	Satyanarayana D. Rao
Designation :	Deputy General Manager-Business Development
Date of Birth/Age :	39 years
Qualification :	B. Sc.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Central Depository Services (India) Limited - Beneficiary - Vodafone India Limited, India	499,999,400
Vodafone India Limited, India	200
Pushkaraj Vishnu Joshi Jointly With Vodafone India Limited, India	100
Vodafone East Ltd. Jointly with Vodafone India Limited, India	100
Vodafone Mobile Services Limited Jointly with Vodafone India Limited, India	100
Vodafone Digilink Limited Jointly with Vodafone India Limited, India	25
Vodafone South Limited Jointly with Vodafone India Limited, India	50
Vodafone Cellular Limited Jointly with Vodafone India Limited, India	25
Total	500,000,000

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in providing mobile telephony services in the Gujarat Circle.

Products :

ITC Code	Product Descriptions
99841310	Mobile telecommunication services- access and use

GENERAL INFORMATION

No. of Employees :

Information declined by management

Bankers :

Not Available

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from banks	4235.700	6096.400
Total	4235.700	6096.400

Banking Relations :	--
Financial Institution :	IL and FS Trust Company Limited, IL and FS Financial Centre, Plot No. C22 Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Mumbai, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AACFD4815A
Holding company :	Vodafone India Limited [U32200MH1992PLC119108]
Ultimate Holding Company :	Vodafone Group Plc.
Intermediate Holding Company :	Vodafone International Holdings B.V.
Subsidiary company :	Vodafone Spacetel Limited [U72200DL1997PLC085764]
Fellow Subsidiary company :	Ø Vodafone Overseas Finance Limited Ø Vodafone South Limited [U74899DL1995PLC074451] Ø Vodafone Digilink Limited [U64201DL1997PLC088088] Ø Vodafone Cellular Limited [U64202TZ1995PLC007674] Ø Vodafone East Limited [U32204WB1992PLC079998] Ø Vodafone India Services Private Limited [U64201GJ1999PTC059542] Ø Vodafone Group Services Limited Ø Connect (India) Mobile Technologies Private Limited [U32202MH1999PTC120818] Ø Vodafone Investments Luxembourg S.A.R.L. Ø Vodafone Mobile Services Limited [U64202DL1992PLC088087] Ø Vodafone Shared Services Limited Ø Vodafone Infrastructure Limited Ø Vodafone Albania Ø Vodafone Pacific Pty Limited Ø Vodafone Czech Republic A.S. Ø Vodafone Egypt Ø Vodafone D2 GmbH Ø Vodafone Panafon S.A. Ø Vodafone Hungary Limited. Ø Vodafone Ireland Marketing Limited Ø Vodafone Malta Limited Ø Vodafone Netherlands Ø Vodafone Mobile NZ Limited Ø Vodafone Portugal Ø Vodafone Romania S.A. Ø Vodafone Spain Ø Telsim Mobile Turkey Ø Vodafone Limited Ø Vodafone Omnitel N.V. Ø Vodafone Espa?a S.A. Ø Vodacom Group (Pty) Limited Ø Vodafone Fiji Ø Vodafone Qatar, Q.S.C

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
750,000,000	Equity Shares	Rs. 10/- each	Rs. 7500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500,000,000	Equity Shares	Rs. 10/- each	Rs. 5000.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		5000.000	5000.000	5000.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		29795.400	29474.000	26473.400
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		34795.400	34474.000	31473.400
LOAN FUNDS
1] Secured Loans		4235.700	6096.400	6096.400
2] Unsecured Loans		11841.000	8861.100	0.000
TOTAL BORROWING		16076.700	14957.500	6096.400
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		50872.100	49431.500	37569.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23606.700	24979.200	13331.000
Capital work-in-progress		1173.900	765.400	569.700
INVESTMENT		1855.000	1855.000	1855.000
DEFERRED TAX ASSETS		127.100	265.600	504.400
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	1013.400	647.000	1744.600
	Cash & Bank Balances	2468.200	622.900	567.800
	Other Current Assets	853.600	740.500	0.600
	Loans & Advances	33152.900	29211.300	25606.600
Total Current Assets		37488.100	31221.700	27919.600
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4192.700	3587.300	4223.700
	Other Current Liabilities	6693.500	4324.600	2066.600
	Provisions	2492.500	1743.500	319.600
Total Current Liabilities		13378.700	9655.400	6609.900
Net Current Assets		24109.400	21566.300	21309.700
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		50872.100	49431.500	37569.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	31334.800	27082.800	24150.200
		Other Income	470.100	692.300	906.400
		TOTAL	31804.900	27775.100	25056.600
Less	EXPENSES
		Cost of materials consumed	16812.400	14435.400	11806.200
		Employee benefit expense	653.100	575.500	602.800
		Other expenses	5394.400	4666.800	3898.000
		TOTAL	22859.900	19677.700	16307.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		8945.000	8097.400	8749.600
Less	FINANCIAL EXPENSES		1741.300	1043.400	513.900
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7203.700	7054.000	8235.700
Less/ Add	DEPRECIATION/ AMORTISATION		3396.400	2980.400	2982.700
	EXCEPTIONAL ITEMS		2335.000	0.000	0.000
	PROFIT BEFORE TAX		1472.300	4073.600	5253.000
Less	TAX		1150.900	1048.800	1313.900
	PROFIT AFTER TAX		321.400	3024.800	3939.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		29474.000	26449.200	22510.100
	BALANCE CARRIED TO THE B/S		29795.400	29474.000	26449.200
	EARNINGS IN FOREIGN CURRENCY
		Roaming Revenue	164.300	163.700	209.600
	IMPORTS
		Capital Goods	2677.100	2744.600	1242.300
	Earnings Per Share (Rs.)		0.64	6.05	7.90

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.01	10.89	15.72
Net Profit Margin (PBT/Sales)	(%)	4.70	15.04	21.75
Return on Total Assets (PBT/Total Assets}	(%)	2.41	7.25	12.73
Return on Investment (ROI) (PBT/Networth)		0.04	0.12	0.17
Debt Equity Ratio (Total Liability/Networth)		0.85	0.71	0.40
Current Ratio (Current Asset/Current Liability)		2.80	3.23	4.22

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Other than acceptances	4192.700	3587.300	4223.700

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	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 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	Yes
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

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans and advances from related parties	10698.000	8404.500
Loans repayable on demand from banks	1143.000	456.600
Total	11841.000	8861.100

OPERATIONS

The year ended March 2012 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 16.0 million subscribers with a growth rate of 11.9% on a year on year basis. The Company continues to be the leading operator, having a Revenue market share of 36.8% (Includes fixed line revenue of all operators) as at 31 March 2012 in a very competitive multi-player market.

During the year 2011-12, 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 364 more cell sites to enhance its network coverage, closing with a total of 7,188 cell sites as at 31 March 2012.

OUTLOOK FOR 2012-2013

Intense competition is expected to continue in FY 2012-13 both in the voice and data (2G & 3G) space. However, uncertainties on the regulatory front and high reserve price fixed by the Government for the 2G auction is expected to result in consolidation in the market. With margins coming under pressure, it is expected that operators would strengthen the rate per minute further in the coming year. Vodafone is one among the top multinational consumer brands in India, and it is expected that subscribers will continue to patronize the Company for its high customer focus and reliable network.

The revenue from data is expected to grow significantly in the coming year after the recent price rationalization and with Company’s enhanced focus on 3G and value added service. Low price point smart phones and drop in rate per Mb is expected to result in steep increase in data usage and revenue. In addition, plans to attract new high value quality customers and retain existing customers are in place. The focus on cost reduction and working capital improvement will continue with more rigor in the coming year. Given the strong presence in the Gujarat circle and brand strength of Vodafone India, your company is confident of delivering consistent results.

STATUS OF DEMERGER OF PASSIVE INFRASTRUCTURE ASSETS

Subsequent to the update provided in our last year's Report, as per the single Judge Order of the Hon'ble High Court of Gujarat (the "Court") which had not sanctioned the scheme, the Company had appealed against the Order before the Division Bench of the said Court.

The Division Bench of said Court had admitted the Appeal and after several hearings had finally passed its Order on 27 August 2012 in favour of the Company thereby approving the demerger of Passive Infrastructure Assets into Vodafone Infrastructure Limited.

Further, as per the said Court's Order, a certified true copy of the Order has been filed with the Registrar of Companies, Guajrat, Dadra and Nagar Haveli (ROC) thereby giving effect to the Demerger.

SCHEME OF ARRANGEMENT

“The Company had filed a Scheme of Arrangement (“Scheme”) in the Hon’ble High Court of Gujarat under Sections 391 to 394 of the Companies Act, 1956 and other applicable laws. Under the Scheme, with effect from the Appointed Date (which is 1 April 2009), the Company and Vodafone Essar Limited (VEL), Vodafone Essar Mobile Services Limited (VEMSL), Vodafone Essar Digilink Limited (VEDL), Vodafone Essar East Limited (VEEL), Vodafone Essar Cellular Limited (VECL) and Vodafone Essar South Limited (VESL) are transferring and vesting their respective passive infrastructure assets to Vodafone Essar Infrastructure Limited (“VEIL”) without any consideration. All the parties to the Scheme, including the Company and VEIL, are direct / indirect wholly owned subsidiaries of Vodafone Essar Limited.

In terms of the Scheme, no liabilities whatsoever, including any contingent liabilities, with respect to passive infrastructure assets or otherwise subsisting on the Appointed Date in relation to any period prior to the Appointed Date are transferred to VEIL.

In the event the Scheme does not become effective, the Scheme shall be null and void and no rights and liabilities will accrue or to be incurred by the Company or VEIL or respective shareholders, creditors, employees or any other person.

The Scheme for the Company is not yet approved by the Hon’ble High Court of Gujarat and accordingly, these financial statements do not include adjustments (amounts presently unascertained), that will arise from the implementation of the Scheme.”

CONTINGENT LIABILITIES

(Rs. in millions)

Particulars	31.03.2012	31.03.2011
Claims against company not acknowledged as debt	1326.700	4090.700
Guarantees	672525.900	662527.100
Total contingent liabilities	673852.600	666617.800

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 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. 53.89
UK Pound	1	Rs. 84.93
Euro	1	Rs. 72.51

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--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		62

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.