MIRA INFORM REPORT

Report Date :

14.06.2014

IDENTIFICATION DETAILS

Name :	TATA COMMUNICATIONS LIMITED (w.e.f. February 13, 2008)

Formerly Known As :	VIDESH SANCHAR NIGAM LIMITED

Registered Office :	V S B, Mahatma Gandhi Road, Fort, Mumbai – 400001, Maharashtra

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	19.03.1986

Com. Reg. No.:	11-039266

Capital Investment / Paid-up Capital :	Rs. 2850.000 Millions

CIN No.: [Company Identification No.]	L64200MH1986PLC039266

TAN No.: [Tax Deduction & Collection Account No.]	MUMV07840A

PAN No.: [Permanent Account No.]	AAACV2808C

Legal Form :	A Public Limited Liability company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Subject is engaged in the business of providing International Telecommunications Services.

No. of Employees :	9474 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (76)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 300650000

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Exists

Comments :	Subject is a well-established and reputed company having excellent track record. The company has achieved a significant growth in its net profitability during 2013. Financial position seems to be sound. Trade relations are fair. Business is active. Payment terms are reported as regular and as per commitments. The company can be considered good for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

India

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

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Short Term debt: A1+
Rating Explanation	Have very strong degree of safety and carry lowest credit risk.
Date	06.02.2014

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 – COOPERATIVE (91-22-66578765)

LOCATIONS

Registered Office :	V S B, Mahatma Gandhi Road, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-66578765
Fax No.:	91-22-66395162
E-Mail :	help@tatacommunications.com Satish.ranade@tatacommunications.com
Website :	http://www.tatacommunications.com

Corporate Office :	Plot No. C21 and C36, “G” Block, Bandra Kurla Complex, Mumbai – 400098, Maharasahtra, India
Tel. No.:	91-22-66578765
Fax No.:	91-22-66395162

Overseas Office:	Singapore Hong Kong United Arab Emirates United States of America Canada United Kingdom France

DIRECTORS

As on : 31.03.2013

Name :	Mr. Subodh Bhargava
Designation :	Chairman (Independent)

Name :	Mr. Vinod Kumar
Designation :	Panatone Nominee

Name :	N. Srinath
Designation :	Managing Director and Chief Executive Officer

Name :	Mr. Kishor A. Chaukar
Designation :	Panatone Nominee

Name :	Mr. Amal Ganguli
Designation :	Director (Independent)

Name :	Mr. S. Ramadorai
Designation :	Panatone Nominee

Name :	Mr. S. Ramadorai
Designation :	Director (Panatone Nominee)

Name :	Mr. Arun Gandhi
Designation :	Director (Panatone Nominee)

Name :	Dr. Ashok Jhunjhunwala
Designation :	Director (Panatone Nominee)

Name :	Dr. Uday B. Desai
Designation :	Director (Independent)

Name :	Mr. Ajay Kumar Mittal
Designation :	Director (Government Nominee)

Name :	Mr. Saurabh Kumar Tiwari
Designation :	Director (Government Nominee)

KEY EXECUTIVES

Name :	Mr. Satish Ranade
Designation :	Company Secretary and Chief Legal Officer
Address :	Plot No. C-21 and C-36, G Block, Bandra Kurla Complex, Bandra (East) Mumbai – 400 098, Maharashtra, India
Tel. No.:	91-22-66578765
Fax No.:	91-22-67251962
E-Mail :	Satish.ranade@tatacommunications.com

Name :	Mr. Sanjay Baweja
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2014

Category of Shareholders	No. of Shares	Percentage of holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	74446885	26.12
Bodies Corporate	139286330	48.87
Sub Total	213733215	74.99
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	213733215	74.99
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7929522	2.78
Financial Institutions / Banks	19172176	6.73
Insurance Companies	7422023	2.60
Foreign Institutional Investors	20019520	7.02
Sub Total	54543241	19.14
(2) Non-Institutions
Bodies Corporate	5146726	1.81
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	7650149	2.68
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	3514970	1.23
Any Others (Specify)	411699	0.14
Trusts	11950	0.00
Overseas Corporate Bodies	7250	0.00
Non Resident Indians	392439	0.14
Foreign Nationals	60	0.00
Sub Total	16723544	5.87
Total Public shareholding (B)	71266785	25.01
Total (A)+(B)	285000000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	285000000	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of providing International Telecommunications Services.

GENERAL INFORMATION

No. of Employees :

9474 (Approximately)

Bankers :

· Axis Bank

· Indian Bank

· ANZ Bank

· ICICI Bank Limited

· Bank of America

· Indian Overseas Bank

· Citibank Inc.

· Indusind Bank Limited

· Deustche Bank

· Kotak Mahindra Bank Limited

· Development Bank of Singapore (DBS)

· Royal Bank of Scotland

· HDFC Bank Limited

· State Bank of India

· Hongkong and Shanghai Banking Corporation (HSBC)

· Standard Chartered Bank

· ING Vysya Bank

· Yes Bank Limited

Facilities :

Rs in Millions

SECURED LOAN	As on 31.03.2013	As on 31.03.2012
Debentures :
Taxable Rated Secured Non-Convertible Redeemable Debentures
50, 11.25% Rated Debentures of face value Rs. 1.000 Millions each	50.000	50.000
550, 11.20% Rated Debentures of face value Rs. 1.000 Millions each	550.000	550.000
1,900, 11.00% Rated Debentures of face value 1.000 Millions each	1900.000	1900.000
Nil (2012: 6,000), 11.70% Rated Debentures of face value Rs. 1.000 Millions each [Repayable Rs. Nil within one year (2012: Rs. 40.000 Millions )]	0.000	6000.000
Total	2500.000	8500.000

NOTE :

(i) Secured Debentures :

During the year 2008-09, the Company issued Taxable Rated Secured Non-convertible Redeemable Debentures in demat form for cash at par on private placement basis aggregating Rs. 0.001 Million, IDBI Trusteeship Services Limited has been appointed as trustee to the debenture issue.

Nature of Security

Rs. 10000.000 Millions, 11.70% debentures (face value of Rs. 1.000 Millions each) are secured by a first legal mortgage and charge on the Company’s immovable property being the free hold land at Mouje Maharajpura, Gujarat and Plant and machinery. The debenture has been fully redeemed during the year and the charge on assets is released.

Rs. 2500.000 Millions, debentures (interest ranging from 11.00% to 11.25%, face value of Rs. 1,000,000 each) are secured by a first legal mortgage and charge on the Company’s free hold land at Perambur Barracks, Chennai and Plant and machinery.

Redemption Terms

The outstanding debentures are due for redemption as given below :

Date of redemption as per terms of issue	1,900, 11.00% Debentures	550, 11.20% Debentures	50, 11.25% Debentures
23 January 2019	--	--	5
23 January 2016	--	55	--
23 July 2014	190	--	--
Total	190	55	5

For facilitating the above redemptions, the Company has created a debenture redemption reserve of Rs. 1796.000 Millions (2012: Rs. 6051.900 Millions ), and an amount of Rs. 1744.100 Millions (2012: Rs. 2705.500 Millions ) has been appropriated during the current year. During the year, 4,000 (2012: 4,000) 11.70% debentures aggregating Rs. 4000.000 Millions (2012: Rs. 4000.000 Millions ) were redeemed as per terms of issue and consequently debenture redemption reserve of Rs. 4000.000 Millions (2012: Rs. 4000.000 Millions ) created to facilitate the redemption of above debentures has been transferred to

General reserve.

In addition to the above, 2,000 11.70% debentures aggregating Rs. 2000.000 Millions were prepaid during the year and consequently debenture redemption reserve of Rs. 2000.000 Millions created to facilitate the redemption of above debentures has been transferred to General reserve


Auditors :
Name :	S.B. Billimoria and Company Chartered Accountants
Address:	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400018, Maharashtra, India
Tel No.:	91-22-66071000
Fax No.:	91-22-66071001

Subsidiaries (Held Directly)	· Tata Communications Payment Solutions Limited (formerly known as Tata Communications Banking Infra Solutions Limited) · Tata Communications Transformation Services Limited · Tata Communications International Pte. Limited · VSNL SNOSPV Pte. Limited · S and A Internet Services Private Limited · Tata Communications Lanka Limited

Subsidiaries (Held Indirectly)	· Tata Communications (Australia) Pty Limited · Tata Communications (Belgium) SPRL · Tata Communications Services (Bermuda) Limited · Tata Communications (Bermuda) Limited · Tata Communications (Canada) Limited · Tata Communications (America) Inc. · Tata Communications Services (America) Inc. · Tata Communications (Middle East) FZ-LLC · Tata Communications (UK) Limited · Tata Communications (France) SAS · Tata Communications Deutschland GmbH · Tata Communications (Guam) LLC · Tata Communications (Hong Kong) Limited · Tata Communications (Hungary) LLC · Tata Communications (Ireland) Limited · TCPoP Communication GmbH · Tata Communications (Malaysia) Sdn. Bhd. · Tata Communications (New Zealand) Limited · Tata Communications (Taiwan) Limited

Investing Parties (Promoters):	Panatone Finvest Limited Tata Sons Limited

Joint Venture :	United Telecom Limited

Joint Venture / Associate of wholly owned subsidiary	· SEPCO Communications Pty Limited · Neotel (Pty)Limited · Number Portability Company (Pty) Limited (Held through Neotel (Pty) Limited)

Other Related Parties :	· Tata Communications (Italy) S.r.l · Tata Communications (Japan) KK · ITXC IP Holdings S.a r.lz · Tata Communications (Nordic) AS · Tata Communications (Poland) Sp. Zoo · Tata Communications (Portugal) Unipessoal LDA · Tata Communications (Portugal) Instalacao E Manutencao De Redes LDA · Tata Communications (Puerto Rico) Inc · VSNL International (ITXC) Corp. (Merged with Tata Communications (America) Inc. on 30 March 2012) · Tata Communications (Russia) LLC · Tata Communications Services (International) Pte. Limited · Tata Communications (Spain) S.L · (Formerly known as Videsh Sanchar Nigam Spain Srl) · Tata Communications (Sweden) AB · Tata Communications (Switzerland) GmbH · Tata Communications (Netherlands) B.V. · BitGravity Inc. · Neotel (Pty) Limited (Subsidiary w.e.f 11 April 2011) · SEPCO Communications Pty Limited

CAPITAL STRUCTURE

As on : 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

400000000	Equity Shares	Rs.10/- each	Rs. 4000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

285000000	Equity Shares	Rs.10/- each	Rs. 2850.000 Millions

NOTE:

A. Authorized:

The authorized capital of the Company increased from Rs. 300.00 Millions to Rs. 400.00 Millions during financial year 2011-12 due to the Ministry of Corporate Affairs giving effect to the merger of 100% subsidiary VSNL Broadband Limited into the Company which was approved in December 2007 by the Company and the Bombay High Court in April 2009.

B. Issued, Subscribed and Paid up:

There was no movement in the issued, subscribed and paid up share capital of the Company during the current and past five financial years.

C. Terms/ rights attached to equity shares:

The Company has only one class of equity shares with a face value of Rs. 10 per share. Each shareholder of equity shares is entitled to one vote per share at any general meeting of shareholders. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The holders of American Depositary Receipts ("ADRs") do not have voting rights.

Subsequent to the year end the company announced its intention to delist its American Depositary Shares ("ADSs"), as evidenced by ADRs, from the New York Stock Exchange ("NYSE") and to terminate its ADR program.

The Board of Directors have recommended a dividend of Rs. 3 (2012: Rs. 2) per share for the year ended 31 March 2013.

D. Number of shares held by each shareholder holding more than 5% of the issued share capital:

As on 31.03.2013

Particulars	Nos. of Shares	% of Holding
Panatone Finvest Limited	88626654	31.10
Government of India	74446885	26.12
Tata Sons Limited	40533297	14.22
Bank of New York Mellon as depository to Company’s ADR issue	14107950	4.97

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2850.000	2850.000	2850.000
(b) Reserves & Surplus	72314.200	68519.700	67224.800
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	75164.200	71369.700	70074.800

(3) Non-Current Liabilities
(a) long-term borrowings	6250.000	8250.000	12311.400
(b) Deferred tax liabilities (Net)	0.000	164.200	1259.300
(c) Other long term liabilities	3915.600	3840.800	3363.800
(d) long-term provisions	1221.600	1276.800	951.400
Total Non-current Liabilities (3)	11387.200	13531.800	17885.900

(4) Current Liabilities
(a) Short term borrowings	1497.000	1258.300	1752.900
(b) Trade payables	12483.000	12021.400	10306.300
(c) Other current liabilities	5371.700	9526.900	13558.500
(d) Short-term provisions	1105.200	853.000	940.700
Total Current Liabilities (4)	20456.900	23659.600	26558.400

TOTAL	107008.300	108561.100	114519.100

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	46949.100	46611.000	46967.100
(ii) Intangible Assets	1385.400	909.000	1084.800
(iii) Capital work-in-progress	1746.600	3033.400	2202.200
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	20305.100	17882.700	17881.100
(c) Deferred tax assets (net)	87.100	0.000	0.000
(d) Long-term Loan and Advances	16830.200	27619.400	30020.700
(e) Other Non-current assets	80.800	80.800	80.800
Total Non-Current Assets	87384.300	96136.300	98236.700

(2) Current assets
(a) Current investments	4624.100	0.000	447.100
(b) Inventories	42.000	4.500	53.400
(c) Trade receivables	8610.200	8457.700	6126.200
(d) Cash and cash equivalents	3286.200	533.200	4307.700
(e) Short-term loans and advances	2858.500	3183.100	3401.100
(f) Other current assets	203.000	246.300	1946.900
Total Current Assets	19624.000	12424.800	16282.400

TOTAL	107008.300	108561.100	114519.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	44161.200	40917.700	36117.700
		Other Income	3802.200	1791.000	1907.100
		TOTAL	47963.400	42708.700	38024.800

Less	EXPENSES
		Network and transmission	19632.000	17365.000	15483.600
		Employees Benefits Expenses	6394.600	6222.400	5204.600
		Operating and other expenses	8132.500	7450.600	6869.300
		TOTAL	34159.100	31038.000	27557.500

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		13804.300	11670.700	10467.300

Less	FINANCIAL EXPENSES		1196.900	1948.700	2119.300

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)		12607.400	9722.000	8348.000

Less/ Add	DEPRECIATION/ AMORTISATION		7624.000	7070.800	6596.500

Add	EXCEPTIONAL ITEMS (LOSS) / GAIN		1583.500	0.000	(211.100)

	PROFIT BEFORE TAX		6566.900	2651.200	1540.400

Less	TAX		1814.500	937.800	(85.200)

	PROFIT AFTER TAX		4752.400	1713.400	1625.600

	EARNINGS IN FOREIGN CURRENCY
		Revenue from telecommunication services	11060.100	100858	8309.700
		Interest income	336.800	127.600	258.300
		Dividend income	261.600	47.600	16.800
		Other income	846.700	106.200	267.700
	TOTAL EARNINGS		12505.200	101139.400	8852.500

	IMPORTS
		Stores & Spares	14.200	16.600	13.500
		Capital Goods	2743.400	1508.400	1327.400
	TOTAL IMPORTS		2757.600	1525.000	1340.900

	Earnings Per Share (Rs.)		16.68	6.01	5.70

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	9.91	4.01	4.28

Net Profit Margin (PBT/Sales)	(%)	14.87	65.99	4.26

Return on Total Assets (PBT/Total Assets}	(%)	7.74	3.02	1.63

Return on Investment (ROI) (PBT/Networth)		0.09	0.04	0.02

Debt Equity Ratio (Total Debt /Networth)		0.10	0.13	0.20

Current Ratio (Current Asset/Current Liability)		0.96	0.53	0.61

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	2850.000	2850.000	2850.000
Reserves & Surplus	67224.800	68519.700	72314.200
Net worth	70,074.800	71,369.700	75,164.200

long-term borrowings	12311.400	8250.000	6250.000
Short term borrowings	1752.900	1258.300	1497.000
Total borrowings	14,064.300	9,508.300	7,747.000
Debt/Equity ratio	0.201	0.133	0.103

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	36117.700	40917.700	44161.200
		13.290	7.927

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	36117.700	40917.700	44161.200
Profit	1625.600	1713.400	4752.400
	4.50%	4.19%	10.76%

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	No
8]	No. of employees	Yes
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	Yes
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	No
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

LITIGATION DETAILS

CASE DETAILS

BENCH BOMBAY

Lodging No: ITXAL/967/2014 Filling Date: 08/08/2014

Petitioner: THE COMMISSIONER OF INCOME TAX – 1 Respondent: TATA COMMUNICATION LIMITED (FORMER)

Petn. Adv: Prakash Chandra Chhotary (I3415)

District: Mumbai

Bench: Division

Status: Pre-Admission Category: Tax Appeals

Last Date: 09/06/2014

Last Coram: Registrar (OS) Prothonotary and Sr. Master

Act : Income Tax Act, 1961 Under Section: 260A

UNSECURED LOANS:

(Rs in Millions)

PARTICULARS	31.03.2013	31.03.2012
Long term borrowings
Taxable Rated Unsecured Non-Convertible Redeemable Debentures
1500, 9.85% Rated Debentures of face value Rs. 1.000 Million each	1500.000	1500.000
1500, 9.50% Rated Debentures of face value Rs. 1.000 Million each	1500.000	1500.000
Term Loan
From Bank ((rate of interest 9% p.a, repayable by June 2014))	750.000	750.000
From Others (rate of interest 5.95% to 6.90% p.a, repayable by July 2012)	0.000	64.600
Less: Current maturities of long term borrowings		(4064.600)
Short term borrowings :
From banks (rate of interest – 1.09 % to 2.60 %)	1497.000	1258.300
Total	5247.000	1008.300

NOTE:

Unsecured Debentures

During the year 2009-10, the Company issued Taxable Rated Unsecured Non-Convertible Redeemable Debentures of face value Rs. 1,000,000 each, in demat form for cash at par on private placement basis aggregating Rs. 7000.000 Millions.

Redemption Terms:

The outstanding debentures are due for redemption as given below:

Date of redemption as per terms of issue	1500, 9.50% Debenture	1500, 9.85% Debentures
23 January 2019	--	150
23 January 2016	150	--
Total	150	150

For facilitating the above redemptions, the Company has created a debenture redemption reserve of Rs. 1705.300 Millions (2012: Rs. 1255.500 Millions), an amount of Rs. 449.800 Millions (2012: Rs. 2420.800 Millions) has been appropriated during the current year.

During the previous year 4,000, 7.74% debenture aggregating Rs. 4000.000 Millions were redeemed as per terms of issue and consequently debenture redemption reserve of Rs. 4000.000 Millions created to facilitate the redemption of above debenture has been transferred to General reserve.

OPERATIONS:

Geographical Presence

In recent years, the Company has established a strong presence not just in India, but globally. As a result, while 24% of the Company’s revenues in 2012-13 came from India, the rest of the world contributed 76%

Segment and Product Distribution

The Company’s revenues are now broadly diversified across its various products and segments. During 2012- 13, voice services contributed 50% to revenues, while 39% came from data services and 11% from Neotel. Within the data services segment, revenues are well distributed between its two segments of service providers and enterprises, which contributed 46% and 54% of the total respectively

Global Voice

In the voice business, the trend of the past few years continues, as overall volumes continue to grow, although margins are declining. During the year, the Company’s international long distance voice traffic grew 14% from 46.72 billion minutes in 2011-12 to 53.4 billion minutes in 2012-13. National long distance voice traffic in India decreased by 2.5% to 8.35 billion minutes in 2012-13. The gross margins from the voice business fell 11% to US cents 0.003 per minute, from US cents 0.0034 per minute in the previous year.

Global Data

The launch of cloud computing solutions in India and Asia enabled the Company to grow its data portfolio to build the presence in this high growth business. The global data business achieved a healthy revenue mix between India 51% and the rest of the world 49%; and between service providers 51% and enterprises 49%. The Company’s strategy of expanding into managed services continues to pay off, as managed services now contribute 29% to the global data services segment

Neotel

Neotel, a subsidiary of the Company in South Africa, though still in its gestation period, continues to achieve growth. During the course of 2012-13, Neotel, had several major achievements: its revenues grew 12% year-on-year growth and it turned profitable at the operating (EBIT) level. After achieving an EBITDA profit the year before, Neotel grew that profit 531% during the course of 2012-13. Neotel increased its business customers by 29% to just short of 3,000 and retail customers by 152% to about 152,000. Neotel today employs approximately 1,000 people.

Customer Satisfaction

The Company believes that providing an excellent customer experience generates a crucial sustainable advantage and has made this an important focus area. In 2012-13, the Company’s customer loyalty ratings stood at the 84th percentile of its global peer set. In order to create a customer-centric culture, the Company is improving existing processes for faster service deployment and support to customers, investing in a customer portal that enables customer interaction, initiating programmes around “Customer Voice” and acting on the feedback received, and strengthening its people through multi-skilling and leadership training.

MANAGEMENT DISCUSSION AND ANALYSIS

Macro Economic Situation

2012-13 was a challenging year for the Indian economy, which experienced its worst slowdown in nearly a decade on the back of global stagnation and domestic macro-economic fiscal imbalances. The year started with news that the expansion in the previous year’s fourth quarter GDP had dropped to 5.5%. That, coupled with low growth, a high fiscal and current account deficit, persistent high inflation, ballooning subsidies and pessimistic business sentiment added to the slowdown. About half way through the financial year, the Indian Government intervened with measures like reducing oil and fertilizer subsidies and steps to attract foreign direct investment (FDI) and strengthen the rupee. However, economic conditions and the business atmosphere remain largely unchanged due to uncertainty about the results of these reforms. Sources of funding continued to be scarce and borrowing costs remained high during the year.

During last year, the global economy had recovered slightly from the crisis of the earlier year. Nevertheless, the International Monetary fund (IMF), in the update of its World Economic Outlook, lowered the world GDP growth projections for 2013 and 2014, given renewed setbacks in the Eurozone and the risk of excessive fiscal consolidation in the United States. In particular, the Eurozone faced considerable fiscal strain in the face of an austerity driven recession during 2012, and there was little respite from contraction in manufacturing activity. Indian exports to the Eurozone, which constitute around 17% of total exports, were also impacted due to the decreasing demand from that region. Moreover, although the US government was able to formulate a solution to mitigate a dreaded fiscal cliff, near-term risks persist. This makes the global environment in the coming years more uncertain and challenging for exporters

Telecom Industry Situation

The Indian telecom sector and subscriber base have witnessed tremendous growth over the past decade, catalysed by increasing fixed and mobile network coverage and a competition-induced decline in tariffs. Demand has surged, largely due to these factors, as well as the growth of broadband Internet access, a rapid proliferation of smart mobile devices and higher levels of video traffic on consumer and business networks. The key factors which are likely to fuel growth are a growing subscriber base, mobile applications and technologically advanced end-user devices that will drive exponential growth in Internet usage. However, the growth in traffic is accompanied by the countervailing pressure of severe price erosion, especially for basic voice and connectivity services. This has been further exacerbated by competition from next-generation service providers. The industry also witnessed consolidation, especially among business-to-business (B2B) players

Global Telecom Market

In 2012-13, the global telecom market grew marginally, by approximately 3% year-on-year, to USD 2.207 trillion. Telecom services accounted for 78% of the total market while mobile devices accounted for 16% and telecom infrastructure for 6%. The low single-digit growth rate of the past fiscal year is expected to continue over the next four years as well, with the total telecom market expected to grow at a compounded annual growth rate (CAGR) of only 4%, largely due to on-going economic concerns. During 2012-13, the Company’s addressable market in voice services witnessed a slight decline because of declining call rates while the data market showed healthy growth. In the future, they expect the Company’s addressable market to continue to grow at an attractive pace.

Indian Telecom Market

In 2012-13, the Indian telecom market grew to Rs. 1708540.000 Millions (USD 34 billion), of which Tata Communications’ addressable market was Rs. 649250.000 Millions (USD 13 billion). The major factors driving growth in the Indian market are increased penetration of mobile services, growth in consumer broadband services and increased adoption of network services by Indian businesses. The Company leads the market in several segments. In the financial year 2012-13, the Indian International Long Distance (ILD) voice market had eight major operators, a total inbound market size of 83 billion minutes and outbound market size of 6 billion minutes. The Company’s market share was 24% in inbound traffic and 18% in outbound traffic. The country’s National Long Distance (NLD) voice market size was 351 billion minutes during the year and consisted of 11 major operators. The Company’s NLD addressable market size was 15 billion minutes, of which its market share was 55%. In 2012-13, the Company had a 19% market share of the Rs. 78350.000 Millions Indian enterprise data market. The Company also had a 27% market share in the Rs. 22500.000 crore Indian data centre market.

SEGMENTWISE PERFORMANCE:

Company Segmentation

Tata Communications’ business and revenues are well-diversified across business segments, customer profiles and geographies. Being largely a B2B player, the Company serves two segments of customers: service providers and enterprise customers.

In the service provider segment, the Company provides an integrated set of services including wholesale voice, domestic and international data connectivity, Internet backbone connectivity (also known as IP transit), value added roaming services for mobile operators and carrier-specific business process outsourcing services.

In the enterprise segment, the Company’s main offering comprises a comprehensive suite of connectivity, IT infrastructure and managed communication and collaboration solutions for businesses seeking voice, data and video connectivity between their distributed offices, within India or globally. These services are aimed at improving the operational efficiencies of business through the adoption of the latest networking and IT technologies, on a managed solutions basis. Tata Communications also continues to build industry specific solutions, with a current focus on Banking & Financial Services and Media and Entertainment.

The Company classifies its operations into three main business segments – Global Voice Solutions, Global Data and Managed Services and Neotel (its subsidiary in South Africa).

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10158962	23/10/2012 *	2,500,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BA LLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	B61810099
2	90145554	10/12/2004	600,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI TED	52/60. MAHATMA GANDHI ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	-
3	90228711	09/12/1993	1,000,000,000.00	BANK OF BARODA	INDUSTRIAL FINANCE BRANCH, 42; C.P. PATEL ROAD; FORT, BOMBAY, MAHARASHTRA - 400023, INDIA	-
4	90228397	16/03/1993 *	500,000,000.00	INDIAN OVERSEAS BANK	ELIPHINSTONE BLDG., 2/10 VEER NARIMAN ROAD; FORT, BOMBAY, MAHARASHTRA, INDIA	-

Note: * Date of charge modification

CONTINGENT LIABILITIES AND COMMITMENTS:

Rs in Millions

Particulars	31.03.2013
Guarantees given on behalf of subsidiaries	118366.900
Claims for taxes on income (Refer 1)
-- Income tax disputes where department is in appeal against the company	4570.800
-- Other disputes related to income tax	20672.700
Claims for other taxes	12.800
Other claims (Refer 2)	6918.300

1. Claims for taxes on income:

Significant claims by the revenue authorities in respect of income tax matters relate to disallowance of deductions claimed section 80 IA of the Income Tax Act, 1961 from Assessment years 1996-97 onwards and transfer pricing adjustments carried out by revenue authorities. The Company has contested the disallowances/ adjustments and has preferred appeals which are pending

2. Other claims:

i. Telecom Regulatory Authority of India (“TRAI”) reduced the Access Deficit Charge (“ADC”) rates effective 1 April 2007. All telecom services providers including National Long Distance (“NLD”) and International Long Distance (“ILD”) operators in India are bound by the TRAI regulations; accordingly the Company has recorded the cost relating to ADC at revised rates as directed by TRAI. However, BSNL continued to bill at the ADC rate applicable prior to 1 April 2007. BSNL had filed an appeal against the TRAI Interconnect Usage Charges (“IUC”) regulation of reduction in ADC and currently this matter is pending with the Supreme Court. The possible liability on Company is Rs. 3118.400 Millions (2012: Rs. 3118.400 Millions).

ii. On 19 February 2013, DoT issued license fee demand for financial year 2006-07 and 2007-08, based on special audit reports of auditors appointed by DoT. The total demand is for Rs. 1930.500 Millions, being Rs. 928.600 Millions for financial year 2006-07 and Rs. 1001.900 Millions for financial year 2007-08, including Rs. 1020.600 Millions, being interest as on 28 February 2013. The Company has challenged the said demand notice in the Madras High Court which has vide its orders dated 1 March 2013, granted a stay-order against the said demand. Further, the Company is also contesting a license fee claim of Rs. 1012.400 Millions (2012: Rs. 834.000 Millions) (including interest and penalty) for financial year 2005-06. However, the said demand notice includes the items which are already the subject-matter of petitions/appeals, pending for hearing in the Supreme Court of India, for the previous years.

iii. Other claims of Rs. 857.000 Millions (2012: Rs. 306.500 Millions) mainly pertains to routine suits for collection, commercial disputes, claims from customers and/or suppliers and claims from Employee State Insurance Corporation (ESIC).

3. The Company has taken appropriate professional advice in respect of the claims / appeals and has taken all necessary steps to protect its interest. Based on expert opinion, no provision is required in respect of these claims / appeals.

4. During the year 2008-09, in terms of the agreements entered into between Tata Teleservices Limited (“TTSL”), Tata Sons Limited (“TSL”) and NTT DoCoMo, Inc. of Japan (Strategic Partner - SP), TSL gave an option to the Company to sell 36,542,378 equity shares in TTSL to the SP, as part of a secondary sale of 253,163,941 equity shares effected along with a primary issue of 843,879,801 shares by TTSL to the SP. If certain performance parameters and other conditions are not met by TTSL by 31 March 2014 and should the SP decide to divest its entire shareholding in TTSL, and TSL is unable to find a buyer for such shares, the Company is obligated to acquire the shareholding of the SP, at the higher of fair value or 50 percent of the subscription purchase price in proportion of the number of shares sold by the company to the aggregate of the secondary shares sold to the SP, subject to compliance with applicable exchange control regulations, or should the SP decide to divest its entire shareholding in TTSL and TSL is unable to find a buyer for such shares and the SP divests the shares at a lower price, subject to compliance with applicable exchange control regulations, the Company is obliged to pay a compensation representing the difference between such lower sale price and the price referred to above in proportion of the number of shares sold by the company to the aggregate of the secondary shares sold to the SP.

Under the above mentioned agreements with SP, TSL and TTSL have jointly and severally agreed to indemnify SP within the agreed limits against claims arising on account of any failure of certain warranties provided by TSL and TTSL to be true and correct in all respects (amount not determinable) and in respect of specified contingent liabilities (Company’s share Rs. 417.000 Millions). The Company is liable to reimburse TSL, on a pro-rata basis.

5. Future cash flows in respect of above matters are determinable only on receipt of judgements/ decisions pending at various forums/ authorities

STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2014

(Rs. In Millions)

Particulars	For the quarter ended				year ended
	31.03.2014 (Adjusted)	31.03.2014	31.12.2013	31.12.2013 Published	31.03.2014
	(unaudited)	(audited)	(unaudited)	(unaudited)	(audited)
Income from Operations
Revenue from operation	10719.200	8103.400	10710.500	11598.300	43300.500
Other operating income	40.000	40.000	423.500	423.500	463.500
Total	10759.200	8143.400	11134.000	12021.800	4376.400
Expenses
a. Network and transmission	4057.100	4027.900	4540.400	4550.200	18759.500
b. Employee benefit	1685.200	1617.800	1647.00	1668.500	6408.100
c. Depreciation and amortization	1691.200	1126.200	1662.400	1857.3000	6802.300
d. Other	2303.400	1557.600	2233.200	2513.700	8617.000
e. Total Expenditure	9736.900	8329.500	10083.000	10589.700	40586.900
Profit / (Loss) from Operations before Other Income, Finance costs and Exceptional Items	1022.300	(186.100)	1051.000	1432.100	3177.100
Other Income	1153.900	1963.900	1085.700	806.600	4639.500
Profit / (Loss) from Ordinary Activities before Finance costs and Exceptional Items	2176.200	1777.800	2136.700	2238.700	7816.600
Finance Cost	134.100	134.100	14.700	144.700	595.100
Profit / (Loss) from Ordinary activities after Finance costs but before Exceptional Items	2042.100	1643.700	1992.00	2094.000	7221.500
Exceptional Items loss/(gain)	0.000	0.000	0.000	0.000	813.300
Profit / (Loss) from Ordinary Activities before Tax	2042.100	1643.700	1992.000	2094.000	8034.800
Tax Expense	679.100	410.300	665.600	688.200	2610.500
Net Profit / (Loss) from Ordinary Activities after Tax	1363.000	1233.400	1326.400	1405.800	5424.300
Extraordinary Items (net of Tax Expense)	0.000	0.000	0.000	0.000	0.000
Net Profit/(Loss) for the period	1363.000	1233.400	1326.400	1405.800	5424.300
Paid up Equity Share Capital (Face value of 10 per share)	2850.000	2850.000	2850.000	2850.000	2850.000
Paid up Debt Capital	--	--	--	--	--
Reserves excluding Revaluation Reserve
Debenture Redemption Reserve
Earnings Per Share (EPS) Basic and diluted earnings per share before and after Extraordinary Items (Rs.)	4.78	4.33	4.65	4.93	19.03

Part II	For the quarter ended		year ended
	31.03.2014	31.12.2013	31.03.2014
	(unaudited)	(unaudited)	(unaudited)
A) Particulars of Shareholding
1. Public shareholding
a. Number of shares	71266785	71266785	71266785
b. Percentage of shareholding	25.01%	25.01%	25.01%
2. Promoters and Promoter Group
Shareholding
a. Pledged / Encumbered
- Number of Shares	10000000	10000000	10000000
- Percentage of Shares (as a % of the total shareholding of promoters and promoter group)	4.68%	4.68%	4.68%
- Percentage of Shares (as a % of the total share capital of the Company)	3.51%	3.51%	3.51%
b. Non-encumbered
- Number of Shares	203733215	203733215	203733215
- Percentage of Shares (as a % of the total shareholding of promoters and promoter group)	95.32%	95.32%	95.32%
- Percentage of Shares (as a % of the total share capital of the Company)	71.48%	71.48%	71.48%

Particulars	Quarter ended on 31.03.2014
B) Investor complaints
Pending at the beginning of the quarter	Nil
Received during the quarter	0
Resolved during the quarter	0
Remaining unresolved at the end of the quarter	Nil

Standalone Business Segment Information:

(Rs. In Millions)

	For the quarter ended				year ended
Particulars	31.03.2014 (Adjusted)	31.03.2014	31.12.2013	31.12.2013 Published	31.03.2014
	(unaudited)	(audited)	(unaudited)	(unaudited)	(audited)
Income from Operations
Global Voice Solutions	2239.400	2239.400	2768.600	2768.600	11192.200
Global Data and Managed Services	8519.800	5904.000	8365.400	9253.200	32571.800
Total	10759.200	8143.400	11134.000	12021.800	43764.000
Segment result
Global Voice Solutions	(325.200)	(325.200)	(268.700)	(268.700)	(1267.900)
Global Data and Managed Services	6857.000	4261.400	6506.600	7376.100	25466.700
Total	6531.800	3936.200	6237.900	7107.400	24198.800
Less :
(i)Finance Cost	134.100	134.100	144.700	144.700	595.100
(ii) Other Unallocable Expenses (net	4355.600	2158.400	4101.200	4868.700	15568.900
Profit / (Loss) before Taxes	2042.100	1643.700	1992.000	2094.000	8034.800
Includes Exceptional Items					813.300

STATEMENT OF STANDALONE ASSETS AND LIABILITIES AS A MARCH 31, 2014

SOURCES OF FUNDS	31.03.2014

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2850.000
(b) Reserves & Surplus	76006.100
(c) Money received against share warrants	0.000

(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	78856.100

(3) Non-Current Liabilities
(a) long-term borrowings	2100.000
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	4286.900
(d) long-term provisions	1236.700
Total Non-current Liabilities (3)	7623.600

(4) Current Liabilities
(a) Short term borrowings	3161.800
(b) Trade payables	11445.600
(c) Other current liabilities	9824.800
(d) Short-term provisions	3292.300
Total Current Liabilities (4)	27724.500

TOTAL	114204.200

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	41126.200
(ii) Intangible Assets	1245.600
(iii) Capital work-in-progress	3100.400
(iv) Intangible assets under development	0.000
(b) Non-current Investments	20686.600
(c) Deferred tax assets (net)	929.200
(d) Long-term Loan and Advances	22128.200
(e) Other Non-current assets	80.800
Total Non-Current Assets	89297.000

(2) Current assets
(a) Current investments	9343.100
(b) Inventories	41.500
(c) Trade receivables	6854.400
(d) Cash and cash equivalents	5226.300
(e) Short-term loans and advances	3347.700
(f) Other current assets	94.200
Total Current Assets	24907.200

TOTAL	114204.200

FIXED ASSETS:

Land
Building
Plant and Machinery
Furniture and Fixture
Office Equipment
Computers
Motor Vehicle

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.59.48
UK Pound	1	Rs.100.93
Euro	1	Rs.80.71

INFORMATION DETAILS

Information Gathered by :	PDT

Analysis Done by :	RAS

Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		76

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.

MIRA INFORM REPORT

9.91

14.87

7.74

0.09

0.10

0.96

INDEX OF CHARGES

Unit