MIRA INFORM REPORT

Report No. :	335587
Report Date :	08.08.2015

IDENTIFICATION DETAILS

Name :	NELCO LIMITED
Registered Office :	MIDC, Plot No. EL-6, TTC Industrial Area, Electronics Zone, Mahape, Navi Mumbai – 400710, Maharashtra
Tel. No.:	91-22-67399100
Country :	India
Financials (as on) :	30.09.2014
Date of Incorporation :	31.08.1940
Com. Reg. No.:	11-003164
Capital Investment / Paid-up Capital :	Rs.228.175 Million
CIN No.: [Company Identification No.]	L32200MH1940PLC003164
TAN No.: [Tax Deduction & Collection Account No.]	MUMN09602F MUMN13038E
PAN No.: [Permanent Account No.]	AAACTI983C
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject has two reportable segment viz. (1) Network Systems consisting of VSAT services (including SATCOM) and Managed Services (2) Automation and Control consisting of integrated Security and Surveillance Solutions (ISSS).
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Nelco, established in 1940, is a subsidiary of “Tata Power”. Nelco provides electronic systems, solutions and services for the enterprise, infrastructure, and defence segment. It is established company having a satisfactory track record. The ratings on Nelco Limited reflects the strong support that company receives from its parent. The Tata Power Company Limited and other Tata group companies. The ratings also factor in the moderate business risk profile of company’s network systems segment. This rating strengths is partially offset by company’s weak financial risk profile, driven by low operating profitability, and its accumulated losses over the years. However, trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. In view of strong holding, the company can be considered normal 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Bank Facilities A-
Rating Explanation	Adequate degree of safety and low credit risk
Date	February, 2015

Rating Agency Name	CRISIL
Rating	Short Term Bank Facilities A2+
Rating Explanation	Strong degree of safety and low credit risk
Date	February, 2015

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 31-03-2013.

INFORMATION DENIED BY

Name :	Mr. Uday Banerjee
Designation :	Chief Financial Officer
Contact No.:	91-22-67399100
Date :	05.08.2015

LOCATIONS

Registered Office/ Factory :	MIDC, Plot No. EL-6, TTC Industrial Area, Electronics Zone, Mahape, Navi Mumbai – 400710, Maharashtra, India
Tel. No.:	91-22-27681880 / 67399100
Fax No.:	91-22-27686797 / 67399561
E-mail:	services@nelco.com services@nelcoin.com v.rajgopalan@nelcoin.com girish.kirkinde@nelcoin.com
Website:	www.nelcoin.com www.nelco.in
Tel. No.:	91-22-27681880 / 67399100 / 55918728
BRANCHES:
Bangalore :	503, Barton Centre, 5th Floor 84, Mahatma Gandhi Road, Bengaluru 560 001.
Tel. No.:	91-80- 25320321
Fax No.:	91-80- 25580019
Email Id :	tsrdlbang@tsrdarashaw.com
Kolkata :	Tata Centre, 1st Floor, 43, Jawaharlal Nehru Road, Kolkata 700 071.
Tel. No.:	91-33-22883087
Fax No.:	91-33-22883062
Jamshedpur :	Bungalow No.1, ‘E’ Road, Northern Town, Bistupur, Jamshedpur 831 001.
Tel. No.:	91-657- 2426616
Fax No.:	91-657- 2426937
Email Id :	tsrdlbang@tsrdarashaw.com
Delhi Unit:	Plot No.2/42, Sant Vihar, Ansari Road, Darya Ganj, New Delhi 110 002, India
Tel. No.:	91-11-23271805
Fax No.:	91-11-23271802

DIRECTORS

As on 27.11.2014

Name :	Mr. R N Tata
Designation :	Chairman Emeritus
Name :	Mr. R R Bhinge
Designation :	Chairman
Date of Birth/Age :	29.05.1952
Qualification :	B. Tech. Hons. (Electrical) from IIT, Mumbai. Post-Graduation in Business Administration from IIM, Ahmedabad.
Name :	Mr. S Ramakrishnan
Designation :	Director
Name :	Mr. P K Ghose
Designation :	Director
Name :	Mr. V K Deshpande
Designation :	Director
Name :	Mr. Sanjay Dube
Designation :	Director
Name :	Mr. R. Savoor
Designation :	Director
Name :	Mr. K. Raghuraman
Designation :	Director
Name :	Mr. K. Ramachandran
Designation :	Director
Name :	Ms. Hema Hattangady (from 1st October, 2014)
Designation :	Director
Address :	Mr. P. J. Nath
Date of Birth/Age :	Executive Director

KEY EXECUTIVES

Name :	Mr. Uday Banerjee
Designation :	Chief Financial Officer
Name :	Mr. Girish V. Kirkinde
Designation :	Company Secretary
Name :	P. J. Nath
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2015

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	11432590	50.10
Sub Total	11432590	50.10
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11432590	50.10
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	10850	0.05
Financial Institutions / Banks	66447	0.29
Central Government / State Government(s)	82162	0.36
Foreign Institutional Investors	870010	3.81
Sub Total	1029469	4.51
(2) Non-Institutions
Bodies Corporate	1710924	7.50
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	7127557	31.24
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	1517260	6.65
Any Others (Specify)	600	0.00
Trusts	600	0.00
Sub Total	10356341	45.39
Total Public shareholding (B)	11385810	49.90
Total (A)+(B)	22818400	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)	22818400	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl.No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Tata Power Company Limited	1,10,99,630	48.64
2	Tata Sons Limited	2,150	0.01
3	Tata Hydro Electric Power Supply Company Limited	1,050	0.00
4	Tata Investment Corporation Limited	350	0.00
5	Titan Industries Limited	1,000	0.00
6	Aftaab Investment Company Limited	3,28,410	1.44
	Total	1,14,32,590	50.10

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Schlumberger Limited	866460	3.80
2	Hitesh Ramji Javeri	380000	1.67
	Total	1246460	5.46

BUSINESS DETAILS

Line of Business :	Subject has two reportable segment viz. (1) Network Systems consisting of VSAT services (including SATCOM) and Managed Services (2) Automation and Control consisting of integrated Security and Surveillance Solutions (ISSS).
Products / Services :	Providing systems and solutions in the areas of VSAT connectivity and Managed Services. Solutions in the area of Integrated Security and Surveillance
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

v Bank of India

v Union Bank of India

v Axis Bank Limited

v The Zoroastrian Co-Operative Bank Limited

v ICICI Bank Limited

Facilities :

Secured Loan	30.09.2014 (Rs. in Million)	30.09.2013 (Rs. in Million)
Short-term borrowings
Term loan from Banks	34.691	22.151
Loans repayable on demand Cash credit from Banks -	30.478	3.689
Total	65.169	25.840
Note: (i) Cash credit with banks are secured by hypothecation of all tangible moveable assets, including stocks of raw materials, finished goods, goods-in-process, book debts, monies receivable and a second charge on fixed assets of the Company. (ii) Term Loans from The Zoroastrian Co-operative Bank Limited are secured by pari-passu first charge both on the present and future fixed assets, (all tangible moveable machinery and plant) of the company.

Statutory Auditors :
Name :	Deloitte Haskins and Sells LLP Chartered Accountants
Address :	Indiabulls Finance Centre Tower 3, 27^th – 32^nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-61854000
Fax No.:	91-22-61854501/4601
Solicitors :	Ø Mulla and Mulla and Craigie Ø Blunt and Caroe
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	The Tata Power Company Limited
Subsidiary :	Tatanet Services Limited
Associate :	Nelito Systems Limited

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Million
2500000	Redeemable Preference Shares	Rs.100/- each	Rs.250.000 Million
	Total		Rs.500.000 Million

Issued Capital :

No. of Shares	Type	Value	Amount
22818400	Equity Shares	Rs.10/- each	Rs.228.185 Million

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22817461	Equity Shares	Rs.10/- each	Rs.228.175 Million

NOTES:

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Particulars	30.09.2014
	Number of shares	Rs. In Million
Equity shares - Subscribed
Opening and Closing balance	22,817,461	228.175

Details of shares held by the holding company

Particulars	30.09.2014
	Number of shares	Rs. In Million
Equity shares
The Tata Power Company Limited (48.65%) (Holding Company)	11,099,630	110.996
Aftaab Investment Company Limited (1.44%) (Subsidiary of Holding Company)	328,410	3.284

The company has issued only one class of equity shares having a par value of Rs.10 /- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Details of shares held by each shareholder holding more than 5% shares:

Class of shares / Name of shareholder	30.09.2014
	Number of shares	% holding in that class of shares
Equity shares with voting rights
The Tata Power Company Limited (48.65%) (Holding Company)	11,099,630	48.65%

Issued and subscribed equity shares include the following

Class of shares	30.09.2014
	Number of shares	Rs. In Million
Otherwise than in cash pursuant to contracts dated 23^rd October, 1940	5370	0.054
Issued to Shareholders of the erstwhile General Radio and Appliances Limited in terms of the Scheme of Amalgamation	316660	3.167

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	30.09.2014	30.09.2013	30.09.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	228.175	228.175	228.175
(b) Reserves & Surplus	(124.515)	(137.377)	26.302
(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)	103.660	90.798	254.477
(3) Non-Current Liabilities
(a) long-term borrowings	4.881	7.129	12.090
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	9.588	14.306	32.066
(d) long-term provisions	50.465	51.728	57.833
Total Non-current Liabilities (3)	64.934	73.163	101.989
(4) Current Liabilities
(a) Short term borrowings	620.169	762.840	855.895
(b) Trade payables	332.051	414.817	362.740
(c) Other current liabilities	62.716	75.297	73.693
(d) Short-term provisions	43.713	47.055	59.141
Total Current Liabilities (4)	1058.649	1300.009	1351.469
TOTAL	1227.243	1463.970	1707.935
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	184.269	216.222	226.477
(ii) Intangible Assets	46.942	8.801	12.621
(iii) Capital work-in-progress	1.773	5.670	0.836
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	21.225	19.890	19.825
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	260.127	283.019	270.943
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	514.336	533.602	530.702
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	151.440	196.348	209.663
(c) Trade receivables	367.916	515.807	727.400
(d) Cash and cash equivalents	13.044	15.896	29.091
(e) Short-term loans and advances	61.413	52.307	99.323
(f) Other current assets	119.094	150.010	111.756
Total Current Assets	712.907	930.368	1177.233
TOTAL	1227.243	1463.970	1707.935

PROFIT & LOSS ACCOUNT

	PARTICULARS	30.09.2014	30.09.2013	30.09.2012
	SALES
	Revenue from Operations	1027.645	1097.186	1391.113
	Other Income	32.067	13.133	26.447
	TOTAL (A)	1059.712	1110.319	1417.560
Less	EXPENSES
	Cost of Materials Consumed	49.148	81.319	191.755
	Purchases of Stock-in-Trade	325.449	456.141	555.938
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	54.767	5.033	(5.033)
	Employees benefits expense	240.030	241.823	218.332
	Exceptional Items	(124.090)	0.000	(26.789)
	Other expenses	355.781	337.254	328.542
	TOTAL (B)	901.085	1121.570	1262.745
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	158.627	(11.251)	154.815
Less	FINANCIAL EXPENSES (D)	88.691	95.491	88.111
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	69.936	(106.742)	66.704
Less/ Add	DEPRECIATION/ AMORTISATION (F)	57.074	56.937	55.801
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	12.862	(163.679)	10.903
Less	TAX (H)	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	12.862	(163.679)	10.903
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	(162.377)	1.302	3.659
	Balance Carried to the B/S (J+K+L-M)	(149.515)	(162.377)	14.562
	EARNINGS IN FOREIGN CURRENCY
	Engineering / Software Services	14.590	18.540	16.936
	Export of Goods calculated on FOB basis	4.446	2.505	18.064
	TOTAL EARNINGS	19.036	21.045	35.000
	IMPORTS
	Raw Materials and Components	10.757	44.499	111.569
	Finished Goods	156.850	166.508	310.212
	Capital Goods	10.283	13.551	12.460
	TOTAL IMPORTS	177.890	224.558	434.241
	Earnings / (Loss) Per Share (Rs.)	0.56	(7.17)	0.48

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	30.09.2014	30.09.2013	30.09.2012
Current Maturities of Long term debt	2.248	5.456	11.180
Cash generated from operations	256.010	253.549	(246.783)
Net cash flow from operating activity	241.401	218.723	(287.098)

KEY RATIOS

PARTICULARS		30.09.2014	30.09.2013	30.09.2012
Net Profit Margin (PAT / Sales)	(%)	1.25	(14.92)	0.78
Operating Profit Margin (PBIDT/Sales)	(%)	15.44	(1.03)	11.13
Return on Total Assets (PBT/Total Assets}	(%)	1.07	(11.38)	0.65
Return on Investment (ROI) (PBT/Networth)		0.12	(1.80)	0.04
Debt Equity Ratio (Total Debt /Networth)		6.05	8.54	3.45
Current Ratio (Current Asset/Current Liability)		0.67	0.72	0.87

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs.76.85/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	30.09.2012	30.09.2013	30.09.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	228.175	228.175	228.175
Reserves & Surplus	26.302	(137.377)	(124.515)
Net worth	254.477	90.798	103.660
long-term borrowings	12.090	7.129	4.881
Short term borrowings	855.895	762.840	620.169
Current Maturities of Long-Term Debts	11.180	5.456	2.248
Total borrowings	879.165	775.425	627.298
Debt/Equity ratio	3.455	8.540	6.051

YEAR-ON-YEAR GROWTH

Year on Year Growth	30.09.2012	30.09.2013	30.09.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1391.113	1097.186	1027.645
		(21.129)	(6.338)

NET PROFIT MARGIN

Net Profit Margin	30.09.2012	30.09.2013	30.09.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1391.113	1097.186	1027.645
Profit	10.903	(163.679)	12.862
	0.78%	(14.92%)	1.25%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

Presentation Date:- 10.03.2014

Lodging No.:- ITXAL/627/2014 Filing Date:- 10/03/2014

Petitioner: THE COMMISSIONER OF INCOME TAX-8 Respondent: NELCO LIMITED

Petn. Adv : ARVIND PINTO (I583)

District: MUMBAI

Bench: SINGLE

Status: Pre-Admission Category: TAX APPEAL

Last Date: 10.07.2014 Stage: FOR REJECTION (ORIGINAL SIDE MATTERS)

Act: Income Tax Act, 1961 UNDER SECTION: 260A

BACKGROUND

The Company was formed in the year 1940 as National Ekco Radio and Engineering Company Limited (JV between E K Cole and Fazalbhoy). The Company became “Nelco Limited” in 1969. In 1969, the Company was pre-dominantly the manufacturer of audio-visual appliances like Television, calculator, Servo Voltage Stabilizers and such other office equipment. In late 90’s the Company entered in Automation business (SCADA, Traction and Drives), which was divested in 2010. In 1995 the Company through its subsidiary, Tatanet Services Limited (TNSL) first installed VSAT captive hub for Tata Group Companies connectivity and in 2003 it entered into the public domain in VSAT services.

Subject is today focused in providing systems and solutions in the areas of VSAT connectivity and Managed Services. It also provides solutions in the area of Integrated Security and Surveillance

The Company offers a range of innovative and customized solutions for businesses and government institutions under one roof.

The financial year of the Company is from 1st October -30th September.

FINANCIAL HIGHLIGHTS

During the period, the total income was Rs.1027.646 Million as against Rs. 1097.186 Million in the previous year. The Company reported a profit after tax of Rs.12.862 Million as against a loss after tax of Rs. 163.679 Million in the previous year.

The segment wise performance (Standalone) for the year was as follows:

Automation and Control earned total revenue of Rs. 243.000 Million (Rs 335.600 Million in previous year) and incurred a segment loss of Rs. 74.600 Million (loss of Rs. 116.400 Million in previous year). In order to reduce further losses, the Board had decided to explore various options of restructuring including restricting the operations of this Business Segment which comprises of Integrated Security and Surveillance Solutions (ISSS) and Unattended Ground Sensors (UGS) solutions for Defense.

Network Systems earned a total revenue of Rs. 782.100 Million (Rs.759.900 Million in previous year) and reported a segment profit of Rs. 154.700 Million (profit of Rs. 152.000 Million in previous year)

Interest amounted to Rs. 82.400 Million (Rs. 88.700 Million in previous year). Other un-allocable income (net of expenses) is Rs. 15.100 Million as against un-allocable expenses (net of income) of Rs. 110.600 Million in the previous year.

The Notes forming part of the Accounts referred to in Auditors’ Report of the Company are self-explanatory and, therefore, do not call for any further explanation under Section 217(3) of the Companies Act, 1956.

Subsidiary Company

Tatanet Services Limited. (TNSL) is a Wholly Owned Subsidiary of the Company. It holds the requisite licenses for providing the Shared Hub VSAT services. For the financial year ended 31st March, 2014, TNSL has posted revenue from operations of Rs.46263.900 Million as against Rs. 403.900 Million in the previous year and profit after Tax of Rs.8.345 Million as against loss after Tax of Rs.11.629 Million in the previous year.

Vide General Circular No.: 2/2011 dated 8th February, 2011, the Ministry of Corporate Affairs, Govt. of India has granted a general exemption to companies from attaching the Balance Sheet, the Statement of Profit and Loss and other documents referred to in Section 212 (1) of the Companies Act, 1956 in respect of its subsidiary companies, subject to fulfillment of the conditions mentioned therein.

Accordingly, the said documents are not being attached with the Balance Sheet of the Company. A gist of the financial performance of Tatanet Services Limited (“TNSL”), the subsidiary company is contained in the report. The Annual Accounts of TNSL are open for inspection by any Member / Investor and the Company will make available these documents / details upon request by any Member of the Company or to any Investor of TNSL who may be interested in obtaining the same. Further, the Annual Accounts of TNSL will be kept open for inspection by any investor at the Company’s Registered Office and that of the TNSL and would be posted on the website of the Company.

MANAGEMENT DISCUSSION AND ANALYSIS

The Company offers solutions and services mainly in the areas of VSAT communications, Managed Services and Integrated Security and Surveillance Systems in the B2B space, addressing Government as well as enterprise customers. Nelco has been driving continuous performance improvement through TL9000, ISO 20000 and ISO27001.

Industry structure and development

The Company has two reportable segments viz. (1) Network Systems consisting of VSAT services (including SATCOM) and Managed Services and (2) Automation and Control consisting of Integrated Security and Surveillance Solutions (ISSS). The company has a wholly owned subsidiary – Tatanet Services Limited., for delivering satellite bandwidth services through VSATs.

Network Systems

The VSAT service caters to Wide Area Networking requirements for B2B customers using satellite as the medium of transmission. These services are offered under a license held by the company’s subsidiary Tatanet Services Limited, from Department of Telecom, Government. of India. This industry is 24+ years old in India. These services are used mainly for data communication and to some extent voice communication in a Closed User Group (CUG). There are 5 main operators for this business in the country. The VSAT industry has grown primarily due to its ability to offer highly reliable services anywhere in the country, coupled with the trend of many businesses expanding into rural and remote areas. The operators lease satellite transponder space from Antrix Corporation Limited. (“Antrix”) (A Govt. of India Company under Dept. of Space), a part of ISRO. Transponder space is provided in satellites belonging to ISRO as well as foreign operators. The current regulations mandate VSAT service providers to buy transponder space through Antrix only. The VSAT service provider industry is currently growing at around 8% pa.

Managed Services cater to the remote monitoring of Security and Surveillance and Energy Management for a variety of market segments. The services are essentially meant for monitoring and management of non-IT devices. There has been significant growth of these service across the globe. However in India these services are still in their early stages, though the industry has high growth potential in the long run. The Company has been, focusing mainly on remote management for Safety, Security and Surveillance and Energy. A number of players from Telecom Services industry, Original Equipment Manufacturers (OEMs) as well as focused services companies are expanding in this space.

Automation and Control

The Integrated Security and Surveillance Solutions (ISSS) business caters to the System Integration of on premise Safety, Security and Surveillance infrastructure. This is a highly fragmented and extremely competitive market in India. There are a large number of OEMs selling various security and surveillance equipment as stand alone products in the country. There are also a number of comprehensive System Integrators who integrate multiple brand agnostic components to create an end-to-end solution for the customers. With increasing awareness of safety related challenges and threats to assets and human lives, the demand will grow in the long run for high–tech electronic security products like Access Control systems, CCTV Surveillance, Explosive Detection & Disposal, and Sensor Based Electronic Fence Solutions. A few customers in the private sector have started deploying these technologies for offices and factory premises based on their own perception of threats. However, the market for end-to-end system integration project encompassing multiple types of equipments is still limited. A substantial part of it comes from the Govt. which makes the demand lumpy in nature. Also, margins are low as preference is given for the lowest price.

SEGMENT WISE PERFORMANCE

Network Systems

VSAT Services:

During the period, the revenue for the VSAT business including SATCOM was Rs. 706.700 Million as against Rs 694.800 Million in the previous year. The VSAT installed base for the company is in excess of 35,000, which works out to a market share of around 18% of the overall installed base. The Company installed 7,404 VSATs during the year against 9,454 in the previous year. However, the revenue is higher due to higher value contracts during the year as compared to the previous year.

The Company has fared well in the Banking and Finance sector, by rolling out infrastructure for bank branches as well as ATMs. The Company has deployed VSATs in ATMs directly owned by the Banks as well as in ATMs out sourced to the major Brown Label ATM services providers. The Company strengthened its position in the niche segment of Oil exploration by signing up a large 5 year contract with a global leader in solutions for oil rigs, for providing the services to companies doing off-shore oil exploration in India. The Company also deployed VSATs for creating a critical infrastructure backbone for a Defense establishment.

Managed Services:

During the period, the revenue for the Managed Services business was Rs 78.000 Million as against Rs 66.700 Million in the previous year. The Company concentrated on one of the largest private sector banks in India for remotely managing the safety and security surveillance infrastructure of its branches spread across India.

Automation and Control

In view of losses incurred by ISSS and the Defense business of Unattended Ground Sensors (UGS) in the last few years, which led to substantial erosion of the Company’s net worth, the Board approved the restructuring of the business by restricting operations and reducing expenditure, with a view to minimize losses. During the period under review the revenue from this business was Rs. 243.000 Million as against Rs. 335.700 Million in the previous year. The Company managed to complete a large number of complex projects, including at one of the Zonal Railways.

OUTLOOK

Network Systems

The Company has strengthened its presence in the Banking and Finance segment by deploying a large number of VSATs for off-site ATMs and branches. The company had a 32% market share of the incremental VSAT deployment in off-site ATMs. The dominant position in providing infrastructure for Oil rigs has created potential for future growth, some of which could happen within a year’s time. There is momentum in the e-Governance segment, which is likely to lead to additional business in the coming years.

The Company, through its wholly owned subsidiary, Tatanet Services Limited, has already obtained frequency allocation for additional 36 MHz of Ku band satellite transponder space, which will get implemented in the current financial year through a new VSAT hub. This is likely to give a significant boost to the VSAT business of the Company for the coming years.

The availability of High Throughput Satellites (HTS) can give a significant impetus to the VSAT industry by increasing the applications where it will be able to provide services at a competitive price. HTS has already made a large impact for the VSAT industry in many other countries. It is expected that HTS would be available for India in the next 2 – 3 years.

The Managed Services offered by the Company are in the nascent stage in India. The various PSU banks have started adopting these services and this would result in a bigger market in the years to come. The other sectors like Retail, Warehouses, large Buildings, etc. have been evaluating these services but have not yet adopted them. The Company is focusing establishing itself as a quality service provider with a view to creating long term customer relationships.

Automation and Control

The Company expects the ISSS business to pick up momentum only in the medium term, when the new opportunities in the Government and Defense sectors are concretized as also the Govt. decision making process is streamlined for these projects. In the short run, the current challenges of the sector are likely to remain, mainly in terms of delayed decision making, low margins and lumpy demand. The uncertainty of demand for UGS in Defense is likely to continue. The Company will be able to leverage its expertise in executing projects in Railways, Oil PSUs and Defense sectors, for addressing these needs as and when they come up. In the short run, however, the Company is meeting its existing contractual obligations towards its customers and restricting its operations

UNSECURED LOAN

Unsecured Loan	30.09.2014 (Rs. in Million)	30.09.2013 (Rs. in Million)
Long-term Borrowings
Deferred Sales tax liability (Under the Sicom Incentive Scheme)	4.881	7.129
(Repayable in five equal annual instalments after ten years from the year of availment of respective loan.)
Short-term borrowings
Loans repayable on demand From Banks	125.000	150.000
Other loans and advances
Inter corporate deposits
from Holding Company	50.000	127.000
from others	380.000	460.000
Total	559.881	744.129

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10412163	07/03/2013	75,000,000.00	THE ZOROASTRIAN CO-OPERATIVE BANK LIMITED	LOKHANDWALA COMPLEX BRANCH, S 41, RNA SHOPPING, ARCADE, SWAMI SAMARTH NAGAR, ANDHERI (WEST),, MUMBAI, Maharashtra - 400053, INDIA	B70892054
2	10136514	16/12/2008	633,000,000.00	Axis Bank Limited	Universal Insurance Building, Ground Floor, Sir P.M. Road, Fort., Mumbai, Maharashtra - 400001, INDIA	A53766507
3	10301210	06/10/2008	27,500,000.00	THE ZOROASTRIAN CO-OPERATIVE BANK LIMITED	LOKHANDWALA COMPLEX BRANCH, S41, RNA SHOPPING, ARCADE, SWAMI SAMARTH NAGAR, ANDHERI (WEST),, MUMBAI, Maharashtra - 400053, INDIA	B10746055
4	90164489	18/09/2006 *	40,000,000.00	THE ZOROASTRIAN CO-OPERATIVE BANK LIMITED	LOKHANDWALA COMPLEX BR, S 41 RNA SHOPPING ARCADE,,  SWAMI SAMARTH NAGAR, ANDHERI (WEST),, MUMBAI, Maharashtra - 400053, INDIA	-
5	90164308	11/12/2002	12,800,000.00	THE SOROASTRIAN CO-OP BANK LIMITED	LOKHANDWALA COMPLEX. BRANCH, ANDHERI (W0, MUMBAI,  Maharashtra - 400053, INDIA	-
6	90164048	22/04/2002 *	18,000,000.00	THE ZOROSTRIAN CO-OP BANK LIMITED	LOKHANDWALA COMPLEX BRANCH S-41, S. S. NAGAR; ANDHERI(W), MUMBAI, Maharashtra - 400053, INDIA	-
7	90165328	18/05/1999	50,000,000.00	TATA FINANCE LIMITED	DEBENTURE TRUSTEES; JUUI HOUSE; 4TH FLOOR, DAMODA  RDAS SUKHADWALA MARG; FORT, MUMBAI, Maharashtra -  400001, INDIA	-
8	90163455	23/11/1996 *	196,300,000.00	BANQUE INDOSUEZ	RAMON HOUSE, 169; BACKBAY RECLAMATION, MUMBAI, Maharashtra - 400020, INDIA	-
9	90163360	17/01/2001 *	50,000,000.00	ICICI LIMITED	ICICI TOWER, BANDRA KURLA COMPLEX, MUMBAI, Maharashtra - 400051, INDIA	-
10	90163313	02/02/1996	16,700,000.00	UNION BANK OF INDIA	IF BRANCH; UNION BANK BHAVAN, 1ST FLOOR; 239 VIDHAN BHAVAN MARG; NARIMAN POINT, BOMBAY, Maharashtra  - 400021, INDIA	-

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 30 JUNE, 2015

(Rs. In Million)

		Particulars	3 Months ended 30.06.2015	Preceding 3 Months ended 31.03.2015	9 Months ended 30.06.2015
1		Income from Operations
		Sales/Income from Operations (Gross)	226.200	270.500	748.500
		Less: Excise Duty	0.300	0.100	0.600
		a) Net Sales/Income from Operations (net of excise duty)	225.900	270.400	747.900
		b) Other Operating Income	0.000	2.000	2.000
	Total Income from Operations (Net)		225.900	272.400	749.900
2	Expenses
	a)	Cost of Materials consumed	2.400	4.400	19.200
	b)	Purchase of stock in-trade	72.900	76.600	240.700
	c)	Changes in inventories of finished goods, work-in-progress and stock-in-trade	(14.700)	22.400	0.000
	d)	Employee benefit expenses	54.500	53.500	0.000
	e)	Depreciation and amortization expense	15.900	17.700	69.100
	f)	Provision for Foreseeable Losses	0.000	0.000	0.000
	g)	Sub-Contracting Expenses	26.900	24.600	81.600
	h)	Other expenses	70.900	63.900	192.800
	Total Expenses		228.800	263.100	764.800
3		Profit /(Loss) from operations before other income, finance costs and exceptional items (1-2)	(2.900)	9.300	(14.900)
4	Other Income		7.000	5.500	17.500
5		Profit /(Loss) from ordinary activities before finance costs and exceptional items (3+4)	4.100	14.800	2.600
6	Finance Costs		20.700	21.400	62.200
7		Profit /(Loss) from ordinary activities after finance costs but before exceptional items (5-6)	(16.600)	(6.600)	(59.600)
8	Exceptional Items		0.000	0.000	0.000
9	Profit /(Loss) from ordinary activities before tax		(16.600)	(6.600)	(59.600)
10	Tax Expense
	Current Tax		--	--	--
	Deferred Tax		--	--	--
11	Net Profit /(Loss) from ordinary activities after tax (9-10)		(16.600)	(6.600)	(59.600)
12	Extraordinary items (net of tax expense)		--	--	--
13	Net Profit /(Loss) for the period (11-12)		(16.600)	(6.600)	(59.600)
13 A	From Continuing Operations (Net of Tax of Rs. Nil for quarter ended 30.06.2015)		(7.300)	1.300	(36.800)
13 B	From Discounting Operation (Net of Tax Rs. Nil)		(9.300)	(7.900)	(27.500)
14	Paid up equity share capital (Eq. shares of Rs.10/- each)		2282	2282	2282
15	Reserve excluding revaluation reserves
16		Earnings per share (before/after extraordinary items) of Rs.10/- each	(0.73)	(0.29)	(2.82)
		Basic & Diluted
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	11385810	11385810	11385810
		- Percentage of Shareholding	49.90	49.90	49.90
2		Promoters and promoter group shareholding	--	--	--
		a) Pledged/Encumbered
		- Number of shares	--	--	--
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	--	--	--
		- Percentage of shares (as a % of the total share capital of the Company)	--	--	--
		b) Non- encumbered
		- Number of shares	11432590	11432590	11432590
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	100	100	100
		- Percentage of shares (as a % of the total share capital of the Company)	50.10	50.10	50.10

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE THIRD QUARTER AND NINE MONTHS' PERIOD ENDED 30^TH JUNE, 2015

	Particulars	3 Months ended 30.06.2015	Preceding 3 Months ended 31.03.2015	9 Months ended 30.06.2015
	Segment Revenue (Sales and Other Operating Income)
a)	Automation and Controls	35.800	25.500	96.100
b)	Network System	190.400	245.00	652.400
	Less: Excise Duty	0.300	0.100	0.600
	TOTAL	225.900	270.400	747.900
	Less: Inter-segment transfers	--	--	---
	Net Sales / Income from operation	225.900	270.400	747.900
	Segment Results: [Profit/ (Loss) before tax and interest from each segment]
a)	Automation and Controls	(14.900)	(25.100)	(72.900)
b)	Network System	48.300	63.800	149.300
	TOTAL	33.400	38.700	76.400
	Less: Interest Expenses	--	--	--
	Other un-allocable expenditure, net of un-allocable income	29.300	23.900	73.800
	Total Profit/ Loss –before tax	(16.600)	(6.600)	(59.600)
	Capital Employed:
a)	Automation and Controls	266.100	307.000	266.100
b)	Network System	188.600	209.500	188.600
	TOTAL	454.700	516.500	454.700

Notes :

1. The Company vide its letter dated 3^rd April1 2014 had informed the stock exchange about the approval of the Board of Director to restructure the operations of Company’s Integrated Security and Surveillance Solution Business which inter alia, includes the business of Unattended Ground Sensors (UGS) and forms part of the Automation and Control Segment. As part of restructuring, the Board of Director of the company at its meeting held on 28^th January 2015 accepted an “offer” made by The Tata Power Company Limited, (Parent Company) for its Strategic Engineering Division to purchase the business of UGS as a “going concern” on a “slump sale” basis at a consideration of Rs. 83.100 Million with effect from 1^st October 2014. The shareholders by postal ballot on 25^th June, 2015 have approved the transaction. This shall be subject to concluding a business transfer agreement and various approved and consents to be received.

The Assets attributable to the UGS business have been impaired in the three months ended 31st December, 2014 to the tune of Rs. 16.600 Million and disclosed as part of Depreciation and Amortization expenses.

The financial parameters in respect of the ordinary attributable to the UGS business are as follows.

Particulars	3 Months ended 30.06.2015	Preceding 3 Months ended 31.03.2015	9 Months ended 30.06.2015
Net Sales – Income from Operations	2.300	5.500	13.800
Expenses	8.200	11.000	30.300
Expenses attributable	1.900	3.300	8.700
Pre-tax profit / (Loss)	(7.800)	(8.800)	(25.200)
Current Tax	--	--	--

The transfer being effective from 1^st October 2014, the results of operation for the three months and nine months ended 30th June 2015 includes a portion attributable to the Tata Power Company Limited which will be given effect to on completion of transfer.

2. Further, as part of restricting, the Board of Director of the Company at its meeting held on 18^th March 2015 accepted the offer received from a company for the transfer of Managed Services business forming part of Network System segment as a “going concern” on a “slump sale” basis at a consideration of Rs. 21.000 Million with effect from 1^st April 2015,. The Shareholders by postal ballot on 25 June 2015 have the transaction. This shall be subject to various approvals and consents to be obtained.

The financial parameters in respect of the ordinary activities attributable to the MS business are as follows

Particulars	3 Months ended 30.06.2015	Preceding 3 Months ended 31.03.2015	9 Months ended 30.06.2015
Net Sales – Income from Operations	9.700	23.500	48.800
Expenses	10.600	19.900	46.300
Expenses attributable	0.600	2.700	4.800
Pre-tax profit / (Loss)	(1.500)	0.900	(2.300)
Current Tax	--	--	--

The transfer being effective from 1^st April 2015, the results of operation for the three months and nine months ended 30^th June 2015, includes a portion attributable to the Purchaser, which will be given effect to on completion of transaction.

3. The company has accumulated losses as at 30^th June 2015, which has substantially eroded the Company’s net worth. Notwithstanding this, these unaudited financial results have been prepared on going concern basis in view of a support letter from the Parent Company.

4. In the year 2006, the Company filed arbitration proceedings against Jawaharlal Nehru Port Trust (JNPT) for enforcement of its claim in respect of the additional work carried out, wrongful deduction of liquidated damages and encashment of bank guarantee by JNPT. The Arbitration award was passed in favour of the Company on February 06, 2012. The said award, however, was challenged by JNPT in the Hon'ble Bombay High Court which dismissed the plea on February 06, 2014 and awarded the claim to the Company, JNPT paid in June, 2014 Rs. 130.300 Million as decretal dues (including interest and costs) to the Company (of which Rs 6.200 Million is included in other income as provision no longer required written back).

5. Pursuant to the enactment of the Companies Act 2013 (the ‘Act’), the Company has effective 1^st October 2014, reviewed and revised the estimated useful lives of its fixed assets, in a accordance with the provisions of Schedule II to the Act. Consequently, the depreciation charge for the three months and nine months ended 30th June 2015 is higher by Rs. 5.500 Million and Rs. 18.900 Million respectively and Rs. 10.400 Million (net of Tax 4.700 Million) on account of transition provision has been adjusted to retained earning as on 1^st October 2014.

6.

Particulars	3 Months ended 30.06.2015	Preceding 3 Months ended 31.03.2015	9 Months ended 30.06.2015
Total Income from Operations	225.900	272.400	749.900
Profit / (Loss) before tax	(16.600)	(6.600)	(59.600)
Profit / (Loss) after tax	(16.600)	(6.600)	(64.300)

7. Due to the nature of project business, financial results for the quarter are not representative of the annual results,

8. In order to be in compliance with the Companies Act 2013, the Board of Directors at its meeting held on 30^th July has given its approval to extended the year ended of its financial statements from 30^th September, 2015 to 31^st March 2016, Subject to approval of the Registrar of Companies (ROC), the financial statements for the period 1^st October, 2014 to 3st March, 2016 would be for 18 months.

9. Figures for the previous year/periods are re-classified / re-arranged / re-grouped, wherever considered necessary.

10. The above results were reviewed and recommended by the Audit Committee and were approved by the Board of Directors at its meeting held on July 30, 2014.

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2014	31.03.2013
Guarantees issued by the company on behalf of its subsidiary (amount of loan outstanding against this guarantee is Rs. 37.100 Million (Previous year: Rs. 33.570 Million)	200.000	200.000
Claims against the company not acknowledged as debt comprises of:
ii)Excise duty, sales tax and service tax claims disputed by the company relating to issues of applicability and classification	65.477	36.246
ii) Custom duty (excluding claims where amounts are not ascertainable)	2.928	2.928
Taxation matters
Demand against the company not acknowledged as debt and not provided for, relating to issues of deductibility and taxability in respect of which company is in appeal Future cash outflows in respect of the above matters are determinable only on receipt of judgments/decisions pending at various forums / authorities	63.133	0.000

FIXED ASSETS

Tangible Assets

• Land-Leasehold
• Building
• Plant and Machinery
• Electrical Machinery
• Office equipment

Own

Given on Lease

Vehicles

Intangible Assets

• Testing 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.63.76
UK Pound	1	Rs.99.60
Euro	1	Rs.69.70

INFORMATION DETAILS

Information Gathered by :	PRP
Analysis Done by :	KSH
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--CREDIT LINES	1~10	5
--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		43

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.