MIRA INFORM REPORT

Report Date :

05.03.2013

IDENTIFICATION DETAILS

Name :	VODAFONE SPACETEL LIMITED [w.e.f.13.10.2011]
Formerly Known As :	VODAFONE ESSAR SPACETEL LIMITED
Registered Office :	C-48, Okhla Industrial Area, Phase – II, New Delhi - 110020
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.03.1997
Com. Reg. No.:	55-085764
Capital Investment / Paid-up Capital :	Rs. 255.000 Millions
CIN No.: [Company Identification No.]	U72200DL1997PLC085764
PAN No.: [Permanent Account No.]	AABCE2207R
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 :

Ca (12)

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 :	Unknown
Comments :	Subject is a subsidiary of Vodafone West Limited. It is an established company having moderate track record. There appear huge accumulated losses recorded by the company. Profitability of the company is under severe pressure. As per the Global Scenario the group is facing severe financial crisis. However, business is active. Payments are reported to be slow. The company can be considered for business dealings on a 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

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 loan : A1+
Rating Explanation	Very strong degree it carry lowest credit risk.
Date	September 28, 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.

LOCATIONS

Registered Office :	C-48, Okhla Industrial Area, Phase – II, New Delhi – 110020, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	pushkaraj.joshi@vodafone.com
Website :	www.vodafone.com
Head Office :	2nd Floor, Centre Point, New Market, T.T. Nagar, Bhopal – 462003, Madhya Pradesh, India
Branch and Zonal Offices :	Located at: Ø Jabalpur Ø Indore Ø Gwalior Ø Raipur Ø Bhopal Ø Satna Ø Bilaspur Ø Ujjain

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Sanjoy Subhod Mukherjee
Designation :	Managing director
Address :	B-1, Maharani Bagh, New Delhi – 110065, India
Date of Birth/Age :	07.11.1963
Qualification :	BTECH [82], MBA [84]
Date of Appointment :	09.07.2010
DIN No.:	03122800
Name :	Mr. Suresh Bagrodia
Designation :	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
Qualification :	B. Com., C. A.
Date of Appointment :	16.02.2012
DIN No.:	05201062
Name :	Mr. Sunil Sood
Designation :	Director
Address :	Flat No. 2401/ 2402, Petit Towers, August Kranti Marg, Kemps Corner, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	09.02.1961
Date of Appointment :	28.09.2012
DIN No.:	03132202
Name :	Mr. Rajiv Kohli
Designation :	Director
Address :	Tower 4, Flat 1401, Vipul Belmounte, Golf Course Road, Gurgaon – 122002, Haryana, India
Date of Birth/Age :	05.12.1960
Date of Appointment :	25.06.2012
DIN No.:	05307604

KEY EXECUTIVES

Name :	Mr. Rabindra Kumar Purohit
Designation :	Secretary
Address :	J-1/123A, Mahavir Kunj, Khiriki Extn., Malviya Nagar, New Delhi - 110017, India
Date of Birth/Age :	20.05.1974
Date of Appointment :	09.02.2010
PAN No.:	AGSPP4869Q
Name :	Mr. Mohit Narru
Designation :	General Manager
Date of Birth/Age :	43 Years
Qualification :	S.S.C./ H.S.C./ C. A./ B. Com
Experience :	20 Years
Name :	Mr. Abdhesh Kumar Singh
Designation :	Chief Executive Officer
Date of Birth/Age :	50 Years
Qualification :	M.B.A. (Full time)
Experience :	5 Years
Name :	Mr. Manish Kumar
Designation :	Associate Vice President
Date of Birth/Age :	41 Years
Qualification :	B. Sc. / P.G. Diploma
Experience :	2 Years
Name :	Mr. Rakesh Shalla
Designation :	Associate Vice-President
Date of Birth/Age :	45 Years
Qualification :	M.B.A. (Full time)
Experience :	21 Years
Name :	Mr. Satyajit Dash
Designation :	General Manager
Date of Birth/Age :	42 Years
Qualification :	S.S.C./ H.S.C./ B. Com./ M.A.
Experience :	6 Years
Name :	Mr. Jayesh Gadia
Designation :	Chief Operating Officer
Date of Birth/Age :	47 Years
Qualification :	B. Com./ M.B.A. (Full time)
Experience :	25 Years
Name :	Mr. Asit Shekhar
Designation :	Chief Operating Officer
Date of Birth/Age :	47 Years
Qualification :	I.C.S.E./ H.S.C./ B. A./ Post Graduate Diploma
Experience :	14 Years
Name :	Mr. Shailesh Upadhyay
Designation :	Associate Vice President
Date of Birth/Age :	49 Years
Qualification :	B. Sc./ Post Graduate Diploma/ M.B.A. (Full time)
Experience :	31 Years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Central Depository Services (India) Limited - Beneficiary - Vodafone West Limited, India	25,499,900
Vodafone West Limited, India	40
Vodafone India Limited Jointly With Vodafone West Limited, India	10
Vodafone Mobile Services Limited Jointly With Vodafone West Limited, India	10
Vodafone South Limited Jointly With Vodafone West Limited, India	10
Vodafone Digilink Limited Jointly With Vodafone West Limited, India	10
Vodafone East Limited Jointly With Vodafone West Limited, India	10
Vodafone Cellular Limited Jointly With Vodafone West Limited, India	10
Total	25,500,000

AS ON 28.09.2012

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

BUSINESS DETAILS

Line of Business :

Providing Cellular Mobile Telephony Services.

Products :

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

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from banks	8715.300	8715.300
Total	8715.300	8715.300
4.1 Details of security All the equity shares of the Company and of certain of its Indian fellow subsidiaries have been pledged as security with the banks. Term loans are further secured by assignment of Unified Access Services Licenses (UAS) of the aforesaid parties under tripartite agreements between the licensees, Department of Telecom (DoT) and the lenders. The equity shares and UAS licenses also provide security for the loans taken by the said Indian fellow subsidiaries. 4.2 Terms of repayment of secured loans Rs. 4812.000 million repayable in financial year 2013-14 and Rs.3903.300 million repayable in financial year 2014-15 respectively. 4.3 Terms of repayment of unsecured loans Rs 3562.800 million repayable in financial year 2016-17. However, in terms of the subordination deed executed with the unsecured lenders, the subordinated loans together with interest accrued there on, are repayable at the end of the subordination period, being the earlier of the date on which the secured loans are paid in full and the date when the financial covenants stipulated by the secured lenders are complied.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr Annie, B E Sant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400018, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AACFD4815A
Holding company :	Vodafone West Limited [U32100GJ1995PLC035282]
Ultimate Holding Company	Vodafone Group Plc.#
Intermediate Holding Company :	Ø Vodafone India Limited [U32200MH1992PLC119108] Ø Vodafone International Holdings B.V. #
Fellow Subsidiary company :	Ø Vodafone South Limited [U74899DL1995PLC074451] Ø Vodafone Mobile Services Limited [U64202DL1992PLC088087] Ø Vodafone Digilink Limited [U64201DL1997PLC088088] Ø Vodafone Cellular Limited [U64202TZ1995PLC007674] Ø Vodafone Investments Luxembourg S.a.r.l. Ø Vodafone Overseas Finance Limited Ø Vodafone East Limited [U32204WB1992PLC079998] Ø Vodafone Group Services Limited Ø Vodafone Ireland Marketing Limited Ø Vodafone Sales and Services Limited Ø Connect (India) Mobile Techologies Private Limited ( w.e.f. February 24, 2012) Ø Vodafone Shared Services Limited Ø Vodafone Infrastructure Limited Ø Vodafone India Services Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
26,000,000	Equity Shares	Rs. 10/- each	Rs. 260.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25,500,000	Equity Shares	Rs. 10/- each	Rs. 255.000 Millions

Rights, preferences and restrictions attached to equity shares:

The Company has a single class of equity shares. Each shareholder is eligible for one vote per share held. In the

Event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

Details of shares held by Holding Company, the Ultimate Holding Company, their Subsidiaries and Associates and shareholders holding more than 5% shares in the Company:

The entire issued capital is held by Vodafone West Limited and its nominees.

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		255.000	255.000	255.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	20.200
4] (Accumulated Losses)		(64819.200)	(43100.400)	(24883.700)
NETWORTH		(64564.200)	(42845.400)	(24608.500)
LOAN FUNDS
1] Secured Loans		8715.300	8715.300	12715.300
2] Unsecured Loans		94456.800	68855.300	43561.400
TOTAL BORROWING		103172.100	77570.600	56276.700
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		38607.900	34725.200	31668.200
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		36594.500	34260.200	31604.600
Capital work-in-progress		3624.500	4876.300	4887.500
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	575.700	253.800	706.000
	Cash & Bank Balances	3608.100	535.600	469.700
	Other Current Assets	1144.100	1317.700	0.000
	Loans & Advances	7932.000	6770.600	5807.300
Total Current Assets		13259.900	8877.700	6983.000
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6686.800	5938.300	9593.500
	Other Current Liabilities	6777.100	6736.600	1685.900
	Provisions	1407.100	614.100	527.500
Total Current Liabilities		14871.000	13289.000	11806.900
Net Current Assets		(1611.100)	(4411.300)	(4823.900)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		38607.900	34725.200	31668.200

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	22351.500	14218.400	6553.900
		Other Income	31.400	73.900	455.000
		TOTAL (A)	22382.900	14292.300	7008.900
Less	EXPENSES
		Cost of materials consumed	21217.600	14509.100
		Employee benefit expense	1596.800	1377.900
		Other expenses	7976.200	6319.700
		TOTAL (B)	30790.600	22206.700	14858.600
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(8407.700)	(7914.400)	(7849.700)
Less	FINANCIAL EXPENSES (D)		7011.400	5076.100	3410.300
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(15419.100)	(12990.500)	(11260.000)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6299.700	5226.200	4046.900
	PROFIT BEFORE TAX (E-F) (G)		(21718.800)	(18216.700)	(15306.900)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		(21718.800)	(18216.700)	(15306.900)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(43100.400)	(24883.700)	(9576.800)
	BALANCE CARRIED TO THE B/S		(64819.200)	(43100.400)	(24883.700)
	EARNINGS IN FOREIGN CURRENCY
		Roaming Revenue	10.100	0.000	5.500
	IMPORTS
		Capital Goods	3730.100	3426.500	6302.800
	Earnings Per Share (Rs.)		(851.72)	(714.38)	(600.30)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(97.03)	(127.46)	(218.39)
Net Profit Margin (PBT/Sales)	(%)	(97.17)	(128.12)	(233.55)
Return on Total Assets (PBT/Total Assets}	(%)	(43.56)	(42.23)	(39.67)
Return on Investment (ROI) (PBT/Networth)		0.34	0.43	0.62
Debt Equity Ratio (Total Debt/Networth)		(1.60)	(1.81)	(2.29)
Current Ratio (Current Asset/Current Liability)		0.89	0.67	0.59

LOCAL AGENCY FURTHER INFORMATION

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	No
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	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans and advances from related parties	3562.800	0.000
Loans repayable on demand from banks	20766.200	3045.900
Loans repayable on demand from others	70127.800	65809.400
Total	94456.800	68855.300

Note: The registered address of the company has been shifted from 21-Feroz Gandhi Road, Lajpat Nagar III, New Delhi – 110024, India to the present w.e.f.04.10.2006

BACKGROUND

The Company is engaged in providing cellular mobile telephony services in the Orissa, Assam, North East, Bihar and Jharkhand, Jammu and Kashmir, Madhya Pradesh and Chhattisgarh and Himachal Pradesh Circles. In October 2011, the Company changed its name from Vodafone Essar Spacetel Limited to Vodafone Spacetel Limited.

YEAR UNDER REVIEW: 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 under review, the Company has widened its subscriber base by launch of various segmented products.

The company's customer base grew to a landmark 16.9 million subscribers with a growth rate of 30.5% on a year on year basis. The company is having a Revenue market share of 9.5%(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 2,525 more cell sites to enhance its network coverage, closing with a total of 20,061 cell sites as at 31 March 2012.

OUTLOOK FOR 2012-13

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 circles in which the company operates and brand strength of Vodafone India group, the company's confident of delivering consistent results.

CONTINGENT LIABILITIES

(Rs. in millions)

Disputed claims not acknowledged as debt:	31.03.2012	31.03.2011
1. Demands received from Department of Telecommunications for non compliance with customer acquisition formalities	113.200	0.000
2. Demands from BSNL and MTNL for port charges	4.200	19.900
3. Income Tax matters pending in appeals towards non deduction of tax at source	15.200	13.500
4. Service Tax demands in respect of disallowance of CENVAT credit on towers, shelters and other matters	259.500	171.700
5. Entry Tax on Capital Goods	279.700	153.400
6. Claims by vendor and others	170.400	0.800
7. Consumer/Civil cases	7.700	0.700
Guarantees:
Guarantees given by bankers to third parties, counter guaranteed by the Company	83.100	142.500
Joint and several guarantees given to banks by the Company together with its holding company and certain of its Indian fellow subsidiaries for loans, including interest thereon	344495.200	355012.800
Loans outstanding	290896.200	307906.100

FIXED ASSETS

Tangible Assets:

Ø Plant and Machinery

Ø Computer Hardware

Ø Office equipments

Ø Furniture and fixtures

Ø Vehicles

Ø Leasehold Improvements

Intangible Assets:

Ø Computer Software

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. 55.05
UK Pound	1	Rs. 82.75
Euro	1	Rs. 71.61

INFORMATION DETAILS

Report Prepared by :

BVA

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	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		12

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

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