MIRA INFORM REPORT

Report Date :

26^TH June 2006

IDENTIFICATION DETAILS

Name :	RELIANCE INFOCOMM LIMITED
Registered Office :	EO 1, Reliance Greens, Village Motikhavdi, P. O. Digvijaynagaram, District Jamnagar-361140
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	31.07.2002
Com. Reg. No.:	04-41035
CIN No.: [Company Identification No.]	U64202GJ2002PLC041035
Legal Form :	Closely held public limited liability company.
Line of Business :	Subject is a provider of a complete range of Telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. . The company has license to offer telecom services in 20 circles under the unified access License. In addition it has received the Letter of Intent for the J & K circle. This has enabled the company to offer services across the length and breadth of India’s vast Geography through its next generation fiber optic network backbone spanning 60000 route Kms. Offering wireless services to 1100 towns / cities in India.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 450000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Reliance Infocomm Limited is a new and closely held public limited company promoted by Reliance Industries Limited, the flagship Company of the Reliance Group. The Company has started its business activities only during the financial year 2003-2004. The company at present is caught in a controversy over equity pattern and investment from promoter company. Various newspaper clippings that are incorporated in this report will give a better idea about the present status of the company. Trade relations are reported as fair. Payments are reported as slow, but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	EO 1, Reliance Greens, Village Motikhavdi, P. O. Digvijaynagaram, District Jamnagar-361140
Tel. No.:	91-288-2222900, 2224122
Fax No.:	91-288-2233883
Location :	Owned
Head Office :	1 Block, 2^nd Floorm Dhirubhai Ambani, Knowledge City, Navi Mumbai-400709, Maharashtra, India
Tel. No.:	91-22-30375552, 30375534
Fax No.:	91-22-30375522
E-Mail :	ada@relianceinfo.com
Website :	http://wwwrelianceinfo.com
Location :	Owned

DIRECTORS

Name :	Anil Dhirubhai Ambani
Designation :	Chairman and Managing Director
Address :	1 Block, 2^nd Floorm Dhirubhai Ambani, Knowledge City, Navi Mumbai-400709
Tel No.:	91-22-30375552, 30375534
E-Mail :	ada@relianceinfo.com
Date of Birth/Age :	4^th June 1959
Qualification :	B. Sc (Chemical), MBA from the wharton school, University of Pennsylvania, U.S.A.
Experience :	22 Years
Name :	Prof. Jayraman Ramchandran
Designation :	Director
Name :	Mr. Gautam B. Doshi
Designation :	Director

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Reliance Communication Technologies Limited	2205000000
Reliance Industries Limited	315000000	7.57
Kaizen Commercial Private Limited	30000000	0.72
Greenwich Capital Private Limited	95600000	2.30
Perigee Trading Private Limited	94700000	2.27
Warbug Capital Private Limited	94700000	2.27
Kaizen Commercial Private Limited	30000000	0.72
Ganesh Infrastructure Capital Fund	30420000	0.76
Satyam Infrastructure Fund	800000	0.02
Fairever Trader and Consultant Private Limited	3400000	0.08
Prena Auto private Limited	3300000	0.08
Softnet Traders and consultants private limited	3300000	0.08
Mr. Mukesh D. Ambani	500000000	12.00
Other	757280000	18.18
Reliance Group Companies (N A) -Preference	1920000	100.00

BUSINESS DETAILS

Line of Business :	Subject is a provider of a complete range of Telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. . The company has license to offer telecom services in 20 circles under the unified access License. In addition it has received the Letter of Intent for the J & K circle. This has enabled the company to offer services across the length and breadth of India’s vast Geography through its next generation fiber optic network backbone spanning 60000 route Kms. Offering wireless services to 1100 towns / cities in India.
Exports to :	USA
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS

Particulars	Unit	Projected By 31.12.2005	Actual Production
Provider of Telephone other telecom related Services	Subscriber Base	40 Million	11 Millions

GENERAL INFORMATION

Customers :

v Agriculture Industry

v Buying agents

v Clinics

v Construction Companies

v Contractor

v Corporate Accounts

v Department stores

v Distributor

v Electronics Industry

v Financial Institution

v Government Bodies

v Hospitals

v Hotels

v Individuals

v Manufacturers

v Property developers

v Related companies

v Retailers

v Schools

v Wholesalers

v End-Users

v Trading Firms

v Transportation Industry

No. of Employees :

235

Bankers :

v State Bank of India

v Allahabad Bank

v ICICI Bank

v IDBI Bank Limited

v Bank of India

v Corporation Bank

v Union Bank of India

v Dena Bank

v Punjab National Bank

v HDFC Bank Limited

Facilities :

Types of Facilities	Amount Sanctioned	Amount Disbursed	Outstanding
Consortium Loan for 8 year moratorium on repayment at below 6 %	Rs. 50000 Millions	Rs. 50000 Millions	Rs. 24420 Millions
Fund Based	Rs. 780 Millions	Rs. 780 Millions	N A

Banking Relations :	Satisfactory
Auditors :	Chaturvedi and Shah Chartered Accountants 712-713, Tulsiani Chambers, 212, Nariman Point, Mumbai-400021
Tel. No. :	91-22-22308500
Fax No.:	91-22-22872703, 22846585
Parent Company:	v Reliance Communication Technologies Limited v Anil Dhirubhai Ambani Enterprises Group
Group companies :	v Reliance Energy Limited v Reliance Capital Mutual Fund Limited
Subsidiaries :	v Reliance Gateway Network Limited v Reliance Info invest Limited v Reliance Infocomm Solutions v Netizen Gujarat Limited v Netizen Rajasthan Private Limited v Reliance Webstores Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000000	Equity Shares	Re. 1.00/- each	Rs. 10000.000 Millions
5000000000	Preference Shares	Re. 1.00 /- each	Rs. 5000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4163500000	Equity Shares	Re. 1.00/- each	Rs. 4163.500 millions
1920000000	Equity Shares	Re. 1.00/- each	Rs. 1920.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		6083.500	5975.900	3470.200
2] Share Application Money		0.000	0.000	81.700
3] Reserves & Surplus		106747.600	110997.500	16879.800
4] (Accumulated Losses)		0.000	(3903.000)	(0.000)
NETWORTH		112831.100	113070.400	20431.700
LOAN FUNDS
1] Secured Loans		7693.900	24423.600	8360.000
2] Unsecured Loans		0.000	0.000	8880.000
TOTAL BORROWING		7693.900	24423.600	17240.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		120525.000	137494.000	37671.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		94121.700	106313.300	6484.700
Capital work-in-progress		0.000	12259.100	54953.200
Intangible		60327.300	0.000	0.000
INVESTMENT		109.200	101.900	79.800
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	525.000	280.500	0.000
	Sundry Debtors	9551.800	8378.600	0.200
	Cash & Bank Balances	761.200	173.600	65.200
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	39468.400	37389.400	13547.600
Total Current Assets		50306.400	46222.100	13613.000
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	84339.600	27290.700	37441.400
	Provisions	0.000	145.300	58.700
Total Current Liabilities		84339.600	27436.000	37500.1
Net Current Assets		34033.200	18786.100	(23887.100)
MISCELLANEOUS EXPENSES		0.000	33.600	41.100
TOTAL		120525.000	137494.000	37671.700

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	55743.100	27069.600	1.200
Profit/(Loss) Before Tax	466.100	1598.100	0.300
Provision for Taxation	43.600	5501.200	0.200
Profit/(Loss) After Tax	509.700	(3903.100)	0.100
Export Value	1084.400	1418.200	1222.600
Import Value	16443.700	15025.500	28914.700
Total Expenditure	55189.800	30972.700	1.100

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	0.91	(14.42)	8.34
Net Profit Margin (PBT/Sales)	(%)	0.84	5.91	25.00
Return on Total Assets (PBT/Total Assets}	(%)	0.32	1.05	0.01
Return on Investment (ROI) (PBT/Networth)		0.00	0.02	0.00
Debt Equity Ratio (Total Liability/Networth)		0.82	0.46	2.84
Current Ratio (Current Asset/Current Liability)		0.60	1.69	0.37

LOCAL AGENCY FURTHER INFORMATION

Reliance Infocomm Limited has taken of over Basic Telecom Service from Reliance Telecom Limited as per the scheme of arrangement approved by Hon. Gujarat High Court as per their order dated 16-05-2003. As per the scheme of arrangement with Reliance Infocomm Limited for demerger of Basic Telephone Services Undertaking of Reliance Telecom Limited and reduction of capital of RTL.

Nature of Restructuring

Amalgamation : As per Scheme of Amalgamation approved by Hon. High Court of Gujarat vide their order dated 16-12-2002

Reliance Infocomm Limited (Co no 21441) transfer all their assets and liabilities to Reliance Information and Communications limited with effect from 24-12-2002 and subsequently the name of company was changed to Reliance Infocomm Limited with effect from 24-12-2002.

Demerger: Reliance Infocomm Limited has taken of over Basic telecom Service from Reliance Telecom Limited as per the scheme of arrangement approved by high Gujarat High Court as per their order dated 16-05-2003.

As per the scheme of arrangement with Reliance Infocomm Limited for demerger of Basic Telephone Service Undertaking of Reliance Telecom Limited and reduction of capital of RTL.

Acquisition : On 12^th January, 2004 Reliance Infocomm Limited acquired 100 % of the undersea cable company. FLAG Telecom for US$ 211 millions through Reliance Gatway Net Limited a wholly owned subsidiary of RIC. This acquisition provides RIC with an international gateway to global markets . FLAG is international Wholesale Telecommunication Service Provider.

The FLAG acquisition also make RIC the only India operator to own international undersea cable network with a truly global foorprint. FLAG Telecom is a leading flobal telecom company. Providing an innovative range of products and services to the international carrier community ASPs and ISPs. It has over 180 customer which include a number of the worlds leading international carries.

Bifurcation of Reliance Group. RIC become part of Anil Ambani Enterprises Group with effect from 26-06-2005. the Anil Dhirubhai Ambani Enterprises Group comprising Reliance Infocimm Limited Reliance Energy Limited and Reliance capital Mutual Fund Limited . the group originally belongs to Reliance Group founded by late Mr. Dhirubhai H. Ambani (1932-2002)

History:

Subject was incorporated on 1^st March 1994 at Ahmedabad in Gujarat having Company Registration Number 21441.

Subject became a deemed public limited company w.e.f. 27.01.2001.

The name of the company was changed to Reliance Infocomm Limited w.e.f. 31^st May, 2002.

On 31^st July, 2002, another company was incorporated under the name and style of “ Reliance Information and Communication Limited” with Company Registration Number 41035 of Gujarat ROC [U64202GJ2002PTC41035].

As per Scheme of Amalgamation ordered by the Honourable High Court of Gujarat on 16^th December 2002, Reliance Infocomm Limited and Reliance Information and Communication Limited were amalgamated.

After the amalgamation subject continued to be known as “Reliance Infocomm Limited” with the new Company Registration Number 41035 of Gujarat ROC,

Reliance Infocom Limited was originally incorporated at Mumbai having Company Registration No. 11-109474 dated 17.07.1997, now amalgamated and formed this new company at Ahmedabad with a Fresh Certificate of Incorporation.

Subject is a part of the Reliance Group of companies.

BUSINESS

The company has applied for licence to provide global mobile personal communication by satellite (GMPCS) services and to act as Internet service Provider [ISP]. Presently, the company is incurring pre-operative expenses.

Subject provides following services:

1] Global Mobile Personal Communication by Satellite Services (GMPCS)

2] Internet Service Provider (ISP) Services

The company commenced its commercial operations very recently.

Subject is a member of the Reliance group, India’s largest business enterprise and amongst the top 500 enterprises in the world.

The group’s total revenue is of Rs.650,000 millions (US$ 13.3 billions), cash profit of over Rs.75,000 millions (US$ 1.5 billions), net profit of over Rs.36,000 millions (US$ 740 millions) and export of Rs.114,000 millions (US$ 2.3 billions). The group has total assets of Rs.690,000 millions (US$ 14.1 billions).

Subject company is in process of establishing a nation-wide, high capacity, integrated (wireless and wire line) and convergent (voice, data and video) digital network, to offer services that will span the entire Infocomm value chain – infrastructure, services for enterprises and individuals, applications and consulting.

The advanced facilities based on intelligent next generation communication network with terabit bandwidth will leapfrog Indian into a centre stage of global communication and information technology space. This initiate, at the convergence of information technology and communications, will foster a new way of life – Digital way of life for a New India.

The company offers voice communication from home, office or on the move, data communication, or audio-visual communication, it brings a range of services that are high on quality and assured on delivery.

Subject offers a range of products and services to meet the needs of individuals, businesses and carriers.

Mobile telephony, fixed line telephony and Internet service now come with a range of solutions that make the experience of communication entirely different and pleasurable.

Even to service providers, Reliance’s range of services will boost their efficiency and business success.

As a one-stop shop for new age telecommunication solutions, subject has laid out one of the biggest fibre optic networks in the world. Digital and broadband-capable, this 60,000 km of terabit capacity network, covering over 600 towns and cities in India, has enabled the company to develop a number of innovative communication applications that seamlessly blend together to deliver world-class communication solutions.

On 14.03.2001, an extra ordinary resolution was passed by the Board of Directors of the subject, to determine the borrowing power/limits of the subject not exceeding Rs.750,000 millions, from FI’s and Commercial Banks for its project.

The Project Cost: So Far Rs.9,390 millions, further orders worth Rs.24,660 millions were given to international vendors for the import of transmission equipments, electrical instruments, etc. for the project.

Subject have deposits of Rs. 8,000 millions (Rs.14,500 millions) from Reliance Industries Limited and Lease Finance of Rs.164.171 millions as on 01.04.2001. Corporate Loan of Rs.1,593.411 millions for 3 to 30 years has been availed.

The Telecom Regularity Authority of India (TRAI),the company has pegged its subscriber base during the first year of operations at close to six millions.

This works out to an astonishing 60 percent of the existing mobile market that the cellular operators have painfully notched up over the past seven years. The South Korean conglomerates LG Electronics (LGE) and Samsung who are in the race to bag the prestigious order for code division multiple access (CDMA) handsets, which will be bundled with the limited mobility services of the company.

Both the companies are known leaders in the CDMA handset and equipment business, having catered to the South Korean market for more than eight years.

Subject imports capital goods, components & spares, etc. from reputed manufacturers and suppliers in USA, Germany, UK, Israel and Japan against L/C terms.

Caption administrative office premises of area admeasuring 5000 sq. ft. situated on ground floor of a building is also owned by the company. Though the registered office of the company is situated at “Avdhesh House”, all the activities are carried out from its administrative office at “Premchand House-Annexe” building, where the telecom services of group companies are functioning together”.

PRESS CLIPPINGS

Reliance Infocomm welcomes Ms. Nalini Gupta as Marketing Advisor at the Chairman's Office

Mumbai, July 20, 2005

Reliance Infocomm today welcomed Ms. Nalini Gupta, who joins the team as Marketing Advisor - Chairman's Office.

Ms. Gupta comes to Reliance Infocomm from Airtel Enterprise Services (AES), where she was Chief Products and Marketing Officer. Her responsibilities included Product Management of voice and data products, along with new introductions.

Prior to Bharti, Ms. Gupta has worked in India and the US, for organisations like AT&T, Pacific Bell and Bellcore (now Telecordia). With a career span of around 18 years in the Product Management domain, she has handled diverse responsibilities in the areas of IT and Networking.

Ms. Gupta is a B.S. as well as an M.S. in Computer Sciences from The College of Staten Island, City University of New York.

Reliance Infocomm Ltd., an Anil Dhirubhai Ambani Enterprises group company, is India's largest private information and communications services provider, with a subscriber base of over 11 million. Reliance Infocomm has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire Infocomm value chain.

The Anil Dhirubhai Ambani Enterprises Group is a member of the Reliance Group, founded by Shri Dhirubhai H. Ambani (1932-2002).

ADA Enterprises welcomes Debabrata Chowdhury as Vice President for 'Technology Development'

Mumbai, July 18, 2005

ADA Enterprise today welcomed Debabrata Chowdhury, who joins the team as Vice President - Technology Development . He will be a key technology resource for the Group.

Debabrata comes to ADAE from Bharti Tele-ventures ltd., where he was Chief Technology Officer, Enterprise Services . His responsibilities included new product innovation and solutions for the company's telecom products and services targeted for Airtel's Enterprise market of India's top corporate clients.

Prior to Bharti, Debabrata has worked in the U.S. for organisations like HUGHES NETWORK SYSTEMS, INC., NETWORK EQUIPMENT TECHNOLOGIES, INC., TELENOVA AND NORTEL. With a career span of around 21 years in IT and Telecommunications domain, he has handled responsibilities in the areas of Broadband and Wireless Networks Divisions.

Debabrata is B.S. in Electrical Engineering and has pursued Graduate studies in Electrical Engineering from North Carolina State and University of South California.

The Anil Dhirubhai Ambani Enterprises Group is a member of the Reliance Group, founded by Shri Dhirubhai H. Ambani (1932-2002).

Colour handset @ Rs2799 from Reliance Infocomm

• Rs 1,000 bonus talktime on new handsets

DAKC (Dhirubhai Ambani Knowledge City), Navi Mumbai, July 12, 2005

With Reliance Infocomm announcing a bonus talk time of Rs 1,000 on purchase of new handsets across the country, effectively, a new colour handset will now be available at Rs 2,799.

The price for some popular black-and-white handsets would work out to Rs999.

For prepaid subscribers, the bonus talk time that is valid for 90 days from the date of purchase can be consumed for making calls to Reliance IndiaMobiles. It is open for all new handsets activated between July 10 and 31, 2005.

On postpaid tariff plans, it will be credited to the monthly bills at the rate of Rs 200 a month for five months. The bonus could be consumed for making calls to both Reliance IndiaMobile and Fixed Wireless Phone and the offer will be effective from July 9 to August 09, 2005.

As the company expands its subscriber base, the company is looking to spread the fruits of mobile revolution and excitement of owning a colour handset.

The LG 5130, for instance, has unique features such as a speakerphone and Hindi interface to facilitate SMS in the national language, multimedia capabilities, and a screen large enough to support video clips, games, wallpapers and other such multimedia applications available on R World. The phone also doubles up as a wireless modem to provide access to the Internet anywhere, anytime with R Connect service.

Reliance Infocomm Ltd., an Anil Dhirubhai Ambani Enterprises group company, is India's largest private information and communications services provider, with a subscriber base of over 12 million. Reliance Infocomm has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire Infocomm value chain.

The Anil Dhirubhai Ambani Enterprises group, is a member of the Reliance Group, founded by Shri Dhirubhai H. Ambani (1932-2002).

ADA Enterprise welcomes Ramesh Venkat as President (Finance)

DAKC (Dhirubhai Ambani Knowledge City), Navi Mumbai, July 12, 2005

Mumbai, July 12, 2005: ADA Enterprises today welcomed Ramesh Venkat, who joins the team as President (Finance).

Ramesh comes to ADA Enterprises from Vedanta/Sterlite group, where he was the Group CFO (Chief Financial Officer) from 2001, responsible for Finance, Treasury, corporate planning and related functions.

A Chartered Accountant, Cost Accountant and Company Secretary of nearly 20 years standing, Ramesh has had a brilliant academic record. He started his career with Hindustan Lever Ltd., and has thereafter worked with ANZ Grindlays Bank and Credit Lyonnais.

The Anil Dhirubhai Ambani Enterprises group, is a member of the Reliance Group, founded by Shri Dhirubhai H. Ambani (1932-2002).

Reliance Infocomm welcomes Sanjay Behl as Head of Branding

DAKC (Dhirubhai Ambani Knowledge City), Navi Mumbai, July 11, 2005

Reliance Infocomm today welcomed Sanjay Behl, who joins the team as Head of Branding. He will be a key marketing resource for the Group.

Behl comes to Reliance Infocomm from Nokia, where he was Head of Marketing for its India operations. Reporting to the managing director, his responsibilities included managing the brand, products, technology, retail and media.

An MBA in marketing management, Behl started his career with Hindustan Lever Ltd. His ten years at HLL included two years with Unilever's global brand core team for two household care brands.

Reliance Infocomm Ltd., an Anil Dhirubhai Ambani Enterprises group company, is India's largest private information and communications services provider, with a subscriber base of over 12 million. Reliance Infocomm has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire Infocomm value chain.

The Anil Dhirubhai Ambani Enterprises group, is a member of the Reliance Group, founded by Shri Dhirubhai H. Ambani (1932-2002).

Reliance-Intel Gamebox Nationals from May 28

• Country's biggest PC game championship, to be held in 104 cities at 230 WebWorlds
• 15,000 gaming buffs to test nerves on World's most popular PC games

DAKC (Dhirubhai Ambani Knowledge City), Navi Mumbai, May 24, 2005

Reliance WebWorld and Intel launched India's biggest multi-player PC gaming tournament today. Called, Gamebox National Championship 2005 , the tournament will be held in more than 230 WebWorlds across 104 cities in India between May 28 and June 12.

Some 15,000 gaming enthusiasts are expected to participate in the championship that includes popular games such as Counter Strike: Condition Zero, Need for Speed, Unreal Tournament 2004, Warcraft III: The Frozen Throne and FIFA 2004.

Winners from each participating Reliance WebWorld will fight it out at the WebWorld level between 30th May to 2nd June-05 and circle level between 4th to 6th June 04 and Zonal levels between 10th to 12th June-05. The Zonal winners will lock horns at the national finals on June 18th & 19th in Mumbai.

While the national winner will win a TVS Victor motorbike, thanks to TVS who are prize sponsors, circle level winners will pocket a Yepp55 Samsung Digital Audio Players.

Announcing the launch, Sarup Chowdhary, CEO, Reliance WebWorld said, "Gamers across India now have a chance to test their skills at these action-packed, thrilling PC games. Multiplayer online gaming is one of the key broadband applications at WebWorld. Creating an environment of competitiveness among participants in the interactive entertainment space is a business imperative today. The Gamebox National Championship is a great beginning for gaming in India."

In addition to supporting play on the Reliance WebWorld network, special Game Dedicated Servers have been set up at the Reliance Data Centre to allow hordes of gamers to game.

Sunil Buch, Head Marketing WebWorld adds "The Gamebox National Championship is being supported by Radio in the 6 top cities of Mumbai, Delhi, Kolkata, Chennai, Pune, Ahmedabad. There is also a huge online campaign on Yahoo, MSN, Rediff and technology / gaming sites like Techtree, Kawabonka. This is the biggest online gaming championship with a total prize kitty of over Rs. 1mn across all levels".

Reliance WebWorld is a world-class nationwide chain of retail outlets for all Infocomm products and services, digital information, entertainment and communication in Real Broadband. Each store has three modules - a Customer Convenience Centre, a JAVAGREEN, and a Broadband Centre (BBC). While JAVAGREEN is a gourmet coffee bar, at the broadband centre one can enjoy video chat and conferencing, multiplayer online gaming, Digital Electronic News Gathering (DENG), digital photo imaging, virtual office and high-speed Internet surfing - about 100 times faster than a dial-up.

Reliance Infocomm Ltd., a Reliance group company, is India's largest private telecom service provider with a subscriber base of over 11 million. Reliance Infocomm has established a pan-India, high - capacity, integrated (wireless and wireline) and convergent (voice, data and video) digital network to offer services spanning the entire Infocomm value chain - infrastructure, services for enterprises and individuals, applications and consulting. The Reliance Group, founded by Shri Dhirubhai H. Ambani (1932-2002), is India's largest business house with total revenues of over Rs 99,000 crore (US$ 22.6 billion), cash profit of Rs 12,5000.000 Millions (US$ 2.8 billion), net profit of Rs 6,2000.000 Millions (US$ 1.4 billion) and exports of Rs 15,9000.000 Millions (US$ 3.6 billion).

Parent company

v Reliance Industries Limited

v Reliance Communications Technology Limited

“Brindavan” 2^nd Floor, Shree Ram Mills Premises, Ganpatrao Kadam Marg, Worli, Mumbai – 400 018, Maharashtra, India

Tel. No. 91-22-24916000

Fax No. 91-22-24916112

- Incorporated on 30.06.2000 at Mumbai in Maharashtra having Company Registration Number 11-127506.

(The company was holding 80 % equity shares = 100 millions equity share in the company as on 27.01.2001)

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] 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.46.34
UK Pound	1	Rs.84.21
Euro	1	Rs.58.14

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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		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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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