MIRA INFORM REPORT

Report Date :

04.01.2007

IDENTIFICATION DETAILS

Name :	IDEA CELLULAR LIMITED
Registered Office :	Suman Tower, Plot No. 18, Sector – 11, Gandhinagar – 382 011, Gujarat
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	14.03.1995
Com. Reg. No.:	04-30976
CIN No.: [Company Identification No.]	U32100GJ1996PLC030976
TAN No.: (Tax Deduction & Collection Account No.)	AHMI00670F
PAN No.: (Permanent Account No.)	AAACB2100P
Legal Form :	A closely held public limited liability company
Line of Business :	Telecommunication and Cellular System Services.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	Slow and Delayed
Litigation :	Clear
Comments :	Subject is a well established company engaged in the business as Cellular operator. The company is currently facing severe competition from the state owned cellular operating company. Inspite of consistent increase in its subscriber base and turnover, profitability is under severe pressure. Financial position is not comfortable. Trade relations are reported as fair. Payments are slow and delayed. The company can be considered normal for business dealings at usual trade terms and conditions, with some caution.

LOCATIONS

Registered Office :	Suman Tower, Plot No. 18, Sector – 11, Gandhinagar – 382 011, Gujarat, India
Tel. No.:	91-79-23232250
Fax No.:	91-79-23232251/3232383
Mobile No.:	91-9824012345
E-Mail :	1. battfin@giaspn01.vsnl.net.in 2. bonatellis@hotmail.com
Website :	1. http://www.tatacell.com 2. http://www.adityabirla.com 3. http://www.ideacellular.com
Area :	Owned - 2000 sq. fts
Administrative Office :	3^rd Floor, Century Bhavan, Dr. A. B. Road, Worli, Mumbai - 400 025, Maharashtra
Tel. No.:	91-22-24314987
Fax No.:	91-22-25467174
Corporate Office :	Sharda Centre, 11/1, Erandwane, Off. Karve Road, Pune, Maharashtra
Tel. No.:	91-20-24123123/25432001/56412222
Fax No.:	91-20-24123099/25467174
Mobile No.:	91-9850003798
Branches :	Ø 3^rd Floor, KLK Estate, Fateh Maidan Road, Basheer Bagh, Hyderabad – 500 001, Andhra Pradesh Tel. 91-40-26562000 Cell. 91-9848012345 Fax. 91-40-26562001 E-mail. ccare.ap@ideacellular.com Ø Surya Krishna Towers, 39-7-1 & 39-7-1A, Labbipet, Vijaywada – 520 010, Andhra Pradesh Tel. 91-866-2663344 Fax. 91-866-2663333 Ø 47-11-3, Eswar Homes, 1^st Lane, Dwaraka Nagar, Visakhapatnam – 530 016, Andhra Pradesh Tel. 91-891-2662000 / 2668080 / 2668081 Fax. 91-891-2663000 Ø Shop No. 5, Ground Floor, L S Tower, Subhash Road, Anantapur – 515 001, Andhra Pradesh Tel. 91-8554-228822 / 228833 Ø Suman Tower, Plot No. 18, Sector 11, Gandhinagar, Gujarat Cell. 91-9824012345 Fax. 91-79-28514000 E-mail. info@ideacellular.com Ø A-30, Mohan Co-operative Industrial Estate, New Delhi Cell. 91-9891012345 Fax. 91-11-251678138 E-mail. ccare.dl@ideacellular.com Ø 139, 140, Electronic Complex, Pardesipura, Indore, Madhya Pradesh Cell. 91-9826012345 Fax. 91-731-2551304 E-mail. ccare.mp@ideacellular.com
Customer Care Addresses :	3rd Floor, K.L.K. Estate, Fateh Maidan Road, Basheer Bagh, Hyderabad Ph: 91-9848012345 Fax: 91-40-55562222 Email: ccare.ap@ideacellular.com A-30, Mohan Co-operative Industrial Estate, New Delhi Ph: 91-9891012345 Fax: 91-11-51678138 Email: ccare.dl@ideacellular.com Suman Tower, Plot No 18, Sector 11, Gandhinagar, Gujarat Ph: 91-9824012345 Fax: 91-79 8514000 Email: 9824012345@ideacellular.com Anand Banquet Hall, Delhi Road, Sonepat – 131001, Haryana Ph: 91-9812012345 Fax – 91-130-2234213 Email: ccare.hr@ideacellular.com 4th Floor, Mercy Estate, Ravipuram. Cochin, Kerala - 682015 Ph.: 91-98470 12345 (Postpaid)        91- 98471 12345 (Prepaid) Fax: 91-484-2382121/2382324 Email: ccare.kerala@ideacellular.com 139, 140 Electronic Complex, Pardesipura, Indore Ph: 91-9826012345 Fax: 91-731 2551304 Email: ccare.mp@ideacellular.com Sharda Centre, 11/1 Erandawane, Off. Karve Road, Pune 411004 Ph: 91-9822012345 Fax: 91-20-4123298/99 Email: 9822012345@ideacellular.com 182 Vidya Laxmi Complex, Abu Lane, Meerut, Uttar Pradesh - 250001 Ph.: 91-9837012345 Fax: 91-121-2640130 Email: ccare.upw@ideacellular.com

DIRECTORS

Name :	Mr. Kumar Mangalam Birla
Designation :	Chairman
Name :	Mr. Sanjeev Aga
Designation :	Managing Director
Name :	Ms. Rajashree Birla
Designation :	Director
Name :	Mr. Debu Bhattacharya
Designation :	Director
Name :	Mr. Arun Thiagarajan
Designation :	Director
Name :	Mr. Tarjani Vakil
Designation :	Independent Director
Name :	Mr. Biswajit Anna Subramanian
Designation :	Additional Director
Name :	Mr. D D Rathi
Designation :	Director
Address :	63, Sunflower, Cuffe Parade, Mumbai - 400 005, Maharashtra
Date of Birth :	11/01/1947
Date of Appointment :	07/11/2001
Name :	Mr. Ishaat Hussain
Designation :	Director
Address :	Flat No. 222, 22^nd floor, NCPA Residential Apartments, Dorabjee Trade Road, Nariman Point, Ahmedabad - 400 021, Gujarat
Date of Birth :	02/09/1947
Date of Appointment :	07/11/2001
Name :	Mr. K A Chaukar
Designation :	Director
Address :	Flat 113, NEPA Apartments, 11^th Floor, Dorabjee Trade Road, Nariman Point, Ahmedabad - 400 021, Gujarat
Date of Birth :	01/08/1947
Date of Appointment :	24/10/2001
Name :	Mr. M R Prasanna
Designation :	Additional Director
Name :	Mr. Mohan Gyani
Designation :	Independent Director
Name :	Mr. R Gopalkrishnan
Designation :	Director
Name :	Mr. R Lewis
Designation :	Director
Name :	Mr. Saurabh Mishra
Designation :	Director
Name :	Mr. T Graham
Designation :	Director
OTHER PERSONAL
Name :	Mr. A. J. S. Jhala
Designation :	Chief Financial Officer and Company Secretary
Name :	Mr. Satish Rajgarhia
Designation :	Company Secretary
Name :	Mr. Graham Burke
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS

Names of Shareholders	No of Shares
AT & T Cellular Private Limited	703561480
Grasim Industries Limited	157013894
Hindalco Industries Limited	173572882
Indo Gulf Corporation Limited	36767344
Indian Rayon & Industries Limited	88816400
Birla TMT Holdings Limited	265280000
Tata Industries Limited	267280000
Tata Treleventure (Holdings) Limited	408778128
AIG (Mauritius) LLC	38456441

BUSINESS DETAILS

Line of Business :	Telecommunication and Cellular System Services.
Products :	Cellular Mobile Phone Services Handsets
Imports from :	U.S.A and Japan against L/C terms
Terms :
Purchasing :	L/C terms

GENERAL INFORMATION

No. of Employees :	1000
Bankers :	v Dena Bank Dccan Gymkhana Branch, Pune (The company is reported to enjoy hypothecation facility of Rs. 99.000 millions dt. 22^nd June 1998) v Deutsche Bank, Mumbai - 400001, Maharashtra v Standard Chartered Bank v Standard Chartered Grindlyas Bank
Banking Relations :	Satisfactory
Auditors :	v Lodha & Company Chartered Accountants 14, Government Place East, Kolkata - 700 069, West Bengal Tel. No. 91-33-22481111 Telefax No. 91-33-22486960 E-mail cal@bdolodha.com v RSM & Company Chartered Accountants G-2, Phoneix Building, Ground Floor, Bund Garden Road, Pune- 411 001, Maharashtra Tel. No. 91-20-24002999 Telefax. No. 91-20-24002998
Associates	Ø Birla Group Ø Tata Group Ø Indo Gulf Corporation Limited Ø Indian Rayon & Industries Limited Ø Hindalco Limited Ø Indian Aluminium Company Limited
Subsidiaries :	BTA Cellcom Limited  Asian Telephone Services Limited  Bhagalaxmi Investments Private Limited  Sapte Investments Private Limited  Vsapte Investments Private Limited  Swinder Singh Satara and Co. Private Limited  Asian Telephone Services Limited Bhagalaxmi Investments Private Limited BTA Cellular Limited (Formerly Known As RPG Cellular Limited) Sapte Investments Limited Vsapte Investments Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000000	Equity Shares	Rs. 10/- each	Rs. 20000.000 millions
425000000	Cumulative Preference Shares	Rs. 10/- each	Rs. 8500.000 millions
425000000	Cumulative Preference Shares	Rs. 10/- each	Rs. 4250.000 millions
	Total		Rs. 32750.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2742530000	Equity Shares	Rs. 10/- each	Rs. 27425.300 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		27425.300	27425.270	27425.270
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		[15740.000]	998.410	998.410
4] (Accumulated Losses)		0.000	(17994.420)	(18294.950)
NETWORTH		11685.300	10429.260	10128.730
LOAN FUNDS
1] Secured Loans		14707.500	16927.500	15064.060
2] Unsecured Loans		14448.500	10052.840	7571.260
TOTAL BORROWING		29156.000	26980.340	22635.320
DEFERRED TAX LIABILITIES		0.000	328.990	1630.070
TOTAL		40841.300	37738.590	34394.120
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		28175.000	17975.330	16509.450
Intangible Assets - Licence Fees		0.000	8799.620	9531.610
Capital work-in-progress		956.700	646.170	744.130
INVESTMENT		3070.300	3070.310	920.310
DEFERREX TAX ASSETS		0.000	328.990	1630.070
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	88.100	134.490	93.730
	Sundry Debtors	908.100	1424.440	988.190
	Cash & Bank Balances	1290.900	1518.880	874.750
	Other Current Assets	0.000	0.000	9.590
	Loans & Advances	14086.400	8337.490	7583.800
Total Current Assets		16373.500	11415.300	9550.060
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	7734.200	4497.130	4491.510
	Provisions	0.000	0.000	0.000
Total Current Liabilities		7734.200	4497.130	4491.510
Net Current Assets		8639.300	6918.170	5058.550
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		40841.300	37738.590	34394.120

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	20210.600	16417.150	11806.960
Profit/(Loss) Before Tax	1285.000	266.930	(2069.120)
Provision for Taxation	29.000	6.400	--
Profit/(Loss) After Tax	1256.000	260.530	(2069.120)
Total Expenditure	18925.600	16156.620	11289.500

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	2.54	2.43	2.04
Long Term Debt-Equity Ratio	2.54	2.43	2.04
Current Ratio	2.23	2.14	1.65
TURNOVER RATIOS
Fixed Assets	0.53	0.48	0.37
Inventory	180.33	142.97	137.36
Debtors	17.21	13.53	13.50
Interest Cover Ratio	1.51	1.16	0.20
Operating Profit Margin(%)	36.32	36.97	28.77
Profit Before Interest And Tax Margin(%)	19.01	18.06	4.44
Cash Profit Margin(%)	23.57	21.36	6.58
Adjusted Net Profit Margin(%)	6.26	2.45	[17.75]
Return On Capital Employed(%)	9.75	8.34	1.69
Return On Net Worth(%)	20.17	7.32	[35.84]

LOCAL AGENCY FURTHER INFORMATION

History

Subject was originally incorporated on 14^th March, 1995 at Mumbai in Maharashtra under the name and style of Birla Communication Limited Subsequently the registered office changed from Mumbai to Gujarat w. e. f. 22^nd October, 1996 having Company Registration Number 30976. The name of the company changed to "Birla AT & T Communications Limited" w. e. f. 13^th May, 1996 and again the name of the company changed to "Birla Tata AT & T Limited" w. e. f. 6^th November, 2001 and later again the name of the company changed to the present w. e. f. 1^st May, 2002.

The company was promoted by Aditya Birla Group and AT & T Wireless - U.S.A

Value-added services: The extension to speech-enabled access of value-added service products, mobile top up, music messaging, Group and Global SMS facilities. 

Financial Results :

They take pleasure in reporting that in line with our projections, they have reported a positive divergence between their income and their operating profits which has grown by 37 per cent and 47 per cent respectively. This has resulted in increase in operating margins from 28 per cent to 30 per cent and the Company reported first time in its history positive EBIT 

It would be pertinent to mention here that over the years the Company has made significant investments in capital expenditure, infrastructure upgradation and asset acquisition in anticipation of subscriber growth, with the objective of creating a more valuable telecom company. This necessitated the mobilization of high cost debts which however were successfully neutralized by improved funds deployment, leading to a decline in interest cost as a proportion of sales to 21 percent (previous year 23 per cent). 

SIGNIFICANT CORPORATE DEVELOPMENTS 

Subscriber base: 

The Company reported a sharp 117 per cent increase in its subscriber base from 1,120,311 in 2002-03 to 2,426,706 in 2003-04 at a time when the national GSM subscriber base grew by 106 per cent. As a result, IDEA which started 2003-04 with a 8.83 per cent market share finished the year with 9.28 per cent. 

IDEA Maharashtra first Circle to hit a million subscribers: 

IDEA's Maharashtra Circle performed remarkably during the year under report. Not only did it grew by 152 per cent, it vindicated the company's decision to invest in it, as it emerged as the first Circle in the country to cross a "million subscribers" mark. The Company strengthened its presence across the densely populated clusters of Pune, Goa, Nagpur, Nasik, Aurangabad, Kolhapur, Sholapur, Ulhasnagar and upcountry locations through the following initiatives: 

* Deeper imprint: An extensive terrain coverage leading to a superior network. 

* Technological superiority: A use of advanced Ericsson PPS and AXE 810 *platforms, 5 MSCs (mobile switching centres), more than 600 cell sites, SMS centre with an installed handling capacity of 216,000 messages per hour and the use of EFR technology for improved voice quality. 
* Customer proximity: A widening sales and service network of more than 10,000 retail outlets and more than 50 showrooms. 

* Customer-centric value proposition: Simple, affordable, innovative and customer-friendly tariff plans. 

* Value-added services: The extension to speech-enabled access of value-added service products, mobile top up, music messaging, Group and Global SMS facilities. 

LARGEST ACQUISITION IN THE INDIAN WIRELESS INDUSTRY 

In addition to the organic growth, the Company continued to strengthen its business through selectively inorganic means. In January 2004, it signed a definitive agreement to acquire a 100 per cent stake in Escotel Mobile Communications Limited (EMCL) and Escorts Telecommunications Limited (ETL). The acquisition was justified on the following grounds: 

EMCL, promoted and owned by Escorts Limited with a 51 per cent equity stake, occupies the number one position in UP (West), Kerala and number two in Haryana; it is already cash positive with a strong operational track record in all its three Circles. 

ETL has fourth cellular license in the telecom circles of Uttar Pradesh (East), Rajasthan, and Himachal Pradesh for GSM-based cellular mobile telecommunication services. However services by ETL in these circles are yet to commence. 

This is what the acquisition, the largest in India's wireless industry, comprising six telecom circles will do for the Company: 

Enhance their subscriber base from 2.42 million to over 3.41 million as on 31^st March 2004. 

Extend their footprint from 29.60 per cent of India's population to 57.80 per cent. 

Derive an incumbency advantage in as many as seven Circles which will entitle the Company to an additional two per cent reduction in license fees for four years from 1^st April 2004, granted only to the incumbent first and second operators in non-metro circles. 

Create a contiguous network of 10 out of 11 circles. 

MARKETING INITIATIVES 

Launch of EDGE-based technology: 

In launching EDGE-based services in Delhi and National Capital Region, the Company became India's first cellular operator to provide customers a data download speed of 160 Kbps. EDGE is a smooth upgrade from GSM networks, providing data services three times faster and at lower costs compared to the existing GPRS technology. The service is clearly futuristic as it is a logical step towards 3G networks, which will enable Internet surfing, mobile web browsing, video streaming, multimedia messaging and downloads. 

Launch of Voice Portal, VAS update: 

The Company launched its voice recognition-based services for downloading cricket scores, ring tones etc. 

OTHER HIGHLIGHTS

The company's other significant achievements during 2003-04 comprised the following: 

i) The Delhi circle created another record of the fastest 500,000 subscribers - in just 17 months of operations - in March 2004. 

ii) Enlisting more than 200,000 (including Madhya Pradesh circle) net subscriber additions in January 2004, the highest ever in a month. 

Subject is the first company in India to launch Cellular Services along major highway and railroads.

The company imports capital goods.

It is in trade terms with :-

v Nokia of Japan

v Ericsson

v Schlumberger Sema

v NDTV

v Indiatimes

v Rediff

v C2W

v AT & T - U.S.A.

Fixed Assets :

Ø Building

Ø Network Equipment

Ø Plant & Machineries

Ø Office Equipment

Ø Computer

Ø Furniture & Fixtures

Ø Motor Vehicles

AS PER WBESITE

An !DEA whose time has come.....

Once in while there comes along an idea that so profoundly impacts the lives of people that it is said to define an era.

Wireless telephony is one such.

Technology soothsayers are of the view that millennia from now the 21st century will be remembered as the Century of the Wireless.

Just think of it: Cellular connections in the world have raced to 1 billion in just a decade, and cellular users now outnumber fixed-line users in close to 100 countries.

India has leapfrogged into the wireless age.

It is perched on the ascendancy of a huge J curve that is estimated to cross the 100 million-subscriber mark by 2010.

Making cellular telephony one of the biggest and fastest growing sectors in India

Chit-Chat Plans In India / Post Paid Plans In India

With Idea, SIMPLICITY and AFFORDABILITY walk hand in hand. Their customer centric tariffs allow you all the room in the world to choose the perfect plan, one which optimizes the usage and keeps the pocket heavy too.

So, when you talk, you don't forget to smile.

Idea Cellular Limited does not deal in handsets.

Idea services are purely restricted to the business
of SIM cards and cellular services.

Idea Partners

IDEA welcomes all businesses and individuals interested in partnering with us to enhance and strengthen the IDEA products & services portfolio.

Some of their Technology and Content Partners:

   - Nokia
   - Ericsson
   - Schlumberger Sema
   - NDTV
   - Indiatimes
   - Rediff
   - C2W

Press Releases

Idea launches SUPERPOWER – (New Delhi – 11^th November 2005)

In another revolutionary move, Idea Cellular, India’s leading Cellular Service provider today announced the launch of India’s first pre paid innovation devoid of boundaries. It is the first time a service provider will offer the customer a product with the freedom to control the validity of his voucher as well as control his talk time.

Keeping in mind the limitations of the current prepaid offerings vis-à-vis calling rates, talk time and validity periods, in the marketplace, Idea Cellular has launched SUPERPOWER which offers the customer a  “no-compromise” product with full talk time, Zero upfront processing fee and maximum validity on all vouchers. With a nominal daily deduction, Idea’s SUPERPOWER is a win-win for all prepaid customers.

Speaking at the launch press conference in New Delhi today, Vikram Mehmi, CEO, Idea Cellular said, "After close to eight years, for the first time in India and perhaps the world, a single prepaid product will cater to the needs of low, medium and heavy users. They are certain that SUPERPOWER will change the face of prepaid in India and will greatly impact their acquisitions in the category. This product, based upon it’s flexibility, transparency and simplicity, will expand the market for all times to come."

About IDEA Cellular Limited

As India’s leading GSM Mobile Services operator, IDEA Cellular has licenses to operate in 11 circles. With a customer base of over 5 million, IDEA Cellular has operations in New Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP- West and Kerala. IDEA Cellular’s footprint currently covers approximately 45% of India’s population and over 50% of the potential telecom-market.

Customer Service and Innovation are the drivers of this Cellular Brand. With GPRS currently available on all its’ networks, for both pre and post paid customers, IDEA Cellular is the first company to commercially launch next generation EDGE technology (a 3G technology) for its Delhi circle.

As a leader in Value Added Services, Innovation is central to IDEA’s VAS Factory. It is the first cellular company to launch music messaging with ‘Cellular Jockey’, ‘Global SMS’ in over 540 networks across all technology platforms, a voice portal with ‘Say IDEA’. A frontrunner in introducing revolutionary tariff plans, offering maximum savings to its customers, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India, with ‘Eco Talk’, ‘Flexi-charge’ and other segmented offerings. The most recent offering - ‘Lifetime Idea’ is the first and only loyalty program, for pre paid customers, introduced by a Cellular brand and Pay Easy which is bill payment through the effective use of the pre-paid channel. IDEA is the only operator in the world to launch this service. Idea has also launched a complete suite of Mobile Email Services.

Idea has many milestones to its credit, mainly – scoring the highest percentage in Metros and Circle B & C in Customer Satisfaction and the highest percentage in Value Added Service and Overall Sales satisfaction as per the Voice and Data - Customer Satisfaction Survey in December 04. The largest M&A deal in India INC, through its acquisition of Escotel in 2004 and its Rs. 5000 Millions financial closure, both being largest ever in the history of Indian telecom.

IDEA Cellular Limited is headquartered in Pune.

South Indian Stars give their best wishes to celebrating IFFI in Goa – (Hyderabad – 17^th November 2005)

IFFI 2005 the prestigious annual international film festival to be staged in Goa from Nov 24 to December 4 will have nearly 200 international and Indian films screened during the eleven-day period. Critically acclaimed international films from Asian, African, European and Latin American countries will be screened along with a number of Indian feature and non-feature films during this mega film festival.

Speaking on the occasion Ms. Debashree Mukherjee, Secretary, Information & Publicity, Goa said, "Goa is really privileged to stage the IFFI once again. They are also delighted to receive the support of the entire South Indian Film Industry. The government is committed to ensuring the grand success of IFFI 2005 and I sincerely hope that the entire event including the series of festivities planned around the main film festival will be liked by local, national and international audiences."

Mr. Sanjit Rodrigues, CEO, Entertainment Society of Goa presented the activities of the event and also unveiled the theme song for the festival. He said, “The 36^th Annual International Film Festival of India is the most prestigious event for the film industry and they are proud to host the IFFI in Goa. They would like to invite all the national and international delegates to the upcoming festival and be a part of the celebrations for IFFI Goa 2005. The theme song ‘An Idea Called IFFI’ is a special tribute to the spirit of the people in Goa and an invitation to all their guests for the festival”. The special theme song called ‘An Idea Called IFFI’ is composed by film music director Himesh Reshamiya and sung by Hema Sardesai and Sonu Nigam.

This year for the first time, IFFI will showcase a host of special events like the Goa Music Day, Namaste India music concert and street animation among others. These have been planned to spice up the festivities during the entire duration of the Festival and are a part of the ‘Idea Celebrating IFFI Goa 2005’ initiative sponsored by Idea Cellular. This fantastic event is being planned and executed by Wizcraft International Entertainment Pvt. Ltd on behalf of ESG.

Commenting on the occasion, Mr. Subbaraman Iyer, Circle Head, Idea Cellular said, "Innovation is the essence of Brand Idea. Mobile telephony is emerging as a platform for cinema and entertainment. For us an association with IFFI is a perfect brand fit. Not only is it a privilege to be associated with an event of this stature but also there is an equally high sense of belonging and intimacy with the soul of the event. They at Idea believe that this is convergence of a different kind."

Film screenings for delegates during IFFI 2005 will be held across 4 theatres at the INOX and the majestic nine hundred seating auditorium at the Kala Academy. In addition to The Kala Academy, screenings will also be held at public theaters and special open-air locations like Caranzalem Water Sports Ground, which are being dressed up to represent the festive ambience, along with innovative mobile cinema screens, which will go across Goa.

A major highlight of IFFI 2005 is a selection of Asian, African and Latin American feature films, highlighting the latest cinematic trends from these regions, being screened before a five member international jury. The main awards which will be presented include: Golden Peacock Award for the ‘Best Film’, Silver Peacock for the most promising director and a ‘Special Jury Award’ for the director of a film for his individual artistic contribution.

The Indian Panorama will have both feature and non-feature film sections with separate juries for both. The feature film jury will recommend two feature films to represent India in the Asian, African and Latin American competition section.

Day one of the ‘Idea Celebrating IFFI Goa 2005’ will begin with a colourful pageantry that starts at the Mandovi Bridge. The fanfare will go along the waterfront, past the Kala Academy and finally come to the Grand Stands at the Old Goa Medical College. The festivities will be officially inaugurated by Mr. Pratapsingh Rane, Hon’ble Chief Minister of Goa at an exclusive opening ceremony for VIPs, media across the country and delegates of the film festival.

The fun and fiesta at ‘Idea Celebrating IFFI Goa 2005’ continues with the ‘Namaste India Concert’ at the Beach Cinema at Caranzalem featuring Shankar Mahadevan and other Indian musicians will be a true celebration of Indian contemporary music. To keep the party and the festivities high Kingfisher, the official product of the festival will be available at every watering hole. The big premieres and Red Carpets of the event will be held at the Inox Multiplex, the official venue for the screenings IFFI Goa 2005.

The ten-day Film festival will have a regular feature of unusual and innovative events like the street animation, laser shows in Caranzalem to showcase picturesque Goa, two mobile cinemas taking the festival to every part of Goa and a Pani projection at Panjim Church. The biggest Bollywood blockbusters including ‘Sarkar’, ‘Mangal Pandey- the Rising’, ‘Bunty aur Babli’ and ‘Salaam Namaste’ will be screened at the Beach Cinema in Caranzalem. On the 25th of November a unique exhibition called Installation Festival will be inaugurated. Goan artist Subodh Kerkar with his exceptional talent will create art with everyday objects like sarees, leaves, mussel shells and vegetables. The Installation festival will be open to the delegates of the film festival and the general public.

The last day of the festival will see the Goa Music Day, celebrating the song and melody of Goa and its people. Through the day, the local Goan musicians will perform at 101 significant places to bring out the true spirit of Goa and every nook and corner will be alive with the sound of celebration! This special day culminates in the preview of the movie ‘Dubai Return’ that will be attended by the stars of the film- Irfan Khan, Divya Dutta, Ritu Shivpuri, director Aditya Bhattacharya and producer Manya Patil. To top it all will be the breadth taking performances by singers Sudesh Bhosale and Oliver Sean. The will be joined by Sagarika, Shivani Kashyap, Australian singer Ayesha London’s Bandish Project and DJ Platinum and Band of Boys - the artists who came together to bring you the fantastic soundtrack to ‘Dubai Return’.

About ESG –

Entertainment Society of Goa was constituted by the Government of Goa to promote Goa as a popular Entertainment hub. The main objectives of the society are:

To make the State of Goa the International Entertainment Hub.

To give global visibility and recognition to the State of Goa.

To earn revenue on a long term basis from ventures in film entertainment and leisure projects and increase revenue  through direct and indirect taxes, levies and foreign exchange inflow and to bring about world wide recognition to the State of Goa as an ultimate tourism and entertainment destination and maximize the state’s potential.

· To hold world class entertainment events, exhibitions and expositions.

· To indulge in networking and relation building in the interest of entertainment industry in the

state of Goa.

· To conceptualize and develop properties for the Government of Goa for the purpose of entertainment industry.

· To integrate international support.

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. 44.30
UK Pound	1	Rs. 85.83
Euro	1	Rs. 57.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--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	NO
TOTAL		30

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 unfav ourable 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

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