MIRA INFORM REPORT

Report Date :

30.10.2007

IDENTIFICATION DETAILS

Name :	BHARTI ENTERPRISES PRIVATE LIMITED
Formerly Known as :	BHARTI OVERSEAS PRIVATE LIMITED
Registered Office :	H – 5/12, Mehrauli Road, New Delhi 110030
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	04.03.1983
Com. Reg. No.:	55-15323
TAN No.: [Tax Deduction & Collection Account No.]	DELB06579G
Legal Form :	Private Limited Liability Company
Line of Business :	Engaged in trading of Telecommunication Equipment/ Cable & Telecom Ducts.

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 :	--
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Bharti Airtel Group, most successful Telecom Company whose ten rupees share is quoted at Rs. 1000 at present. Mr. Sunil Mittal is regarded as first generation successful industrialist. He won several awards for his outstanding achievements. Trade relations are fair. Payments are usually correct and as per commitments. The Company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	H – 5/12, Mehrauli Road, New Delhi 110030, India
Tel. No.:	91-11-51666000
Head Office :	Qutab Ambience (Near Qutab Minar), H-5/12, Ward No. 1, Mehrauli Road, New Delhi – 110 030, India
Tel. No.:	91-11-6641321/6641329/6645143
Fax No.:	91-11-6641327

DIRECTORS

Name :	Mr. Paul Michael Donovan
Designation :	Director
Address :	37 Park Town, Oxford
Date of Birth/Age :	28.06.1958
Name :	Mr. Gavin John Darby
Designation :	Director
Address :	Rodona House, Rodona, Weybridge, Surrey, Weybridege, KT130NP
Date of Birth/Age :	15.02.1956
Name :	Mr. Sunil Bharti Mittal
Designation :	Director
Address :	19, Amrita Shergil Marg, New Delhi 110003, India
Date of Birth/Age :	23.10.1957
Date of Appointment :	04.03.1983
Name :	Mr. Rajan Bharati Mittal
Designation :	Director
Address :	E- 9/17, Vasant Vihar, Vasant Marg, New Delhi 110057, India
Date of Birth/Age :	05.01.1960
Date of Appointment :	04.03.1983
Name :	Mr. Rakesh Bharati Mittal
Designation :	Director
Address :	E-26, Vasant Marg, Visant Vihar, New Delhi 110057, India
Date of Birth/Age :	18.09.1955
Name :	Mr. Govin John Darby
Designation :	Director
Address :	Rodona House, Dodona, Weybridge, Surrey, Weybridge KT130NP
Date of Birth/Age :	15.02.1956
Date of Appointment :	14.12.2005
Name :	Mr. Paul Michael Donovan
Designation :	Director
Address :	37 Park Town, Oxford ox26SL, United Kingdom
Date of Birth/Age :	28.06.1958
Date of Appointment :	27.04.2006
Name :	Mr. Viresh Dayal
Designation :	Director
Address :	6415, DLF City, Phase IV, Gurgaon 122002, Haryana, India
Date of Birth/Age :	01.07.1955
Date of Appointment :	17.03.1998

KEY EXECUTIVES

Name :	Mr. Ajay Kharbanda
Designation :	Secretary
Address :	AP – 38C, Pitampura, New Delhi 110088, India
Date of Birth/Age :	21.10.1968
Date of Appointment :	18.05.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders
Equity Share Break-up	Percentage of Holding
Other top fifty [50] shareholders	100.00

BUSINESS DETAILS

Line of Business :

Engaged in trading of Telecommunication Equipment/ Cable & Telecom Ducts.

GENERAL INFORMATION

No. of Employees :	20
Bankers :	z State Bank of India z Bank of Baroda

Banking Relations :	Satisfactory
Auditors :
Name :	J. C. Bhalla and Company Chartered Accountant
Address :	B-5, Sector 6, Noida 201301, Uttar Pradesh
Associates/Subsidiaries :	Bharti Telecom Finance Limited Mulberry Projects Private Limited Bharti Telesoft Limited First American Securities Private Limited Bharti Axa Life Insurance Company Limited Bharti Infranet Private Limited Ambience Realty Private Limited Lily Projects Private Limited Jasmine Projects Private Limited Tulip Projects Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs. 100/- each	Rs. 700.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3425001	Equity Shares	Rs. 100/- each	Rs. 342.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		464.346	342.500	137.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		32559.315	563.756	745.721
4] (Accumulated Losses)		[14.562]	0.000	0.000
NETWORTH		33009.099	906.256	882.721
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	32681.161	52.850
TOTAL BORROWING		0.000	32681.161	52.850
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		33009.099	33587.417	935.571
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000	3.122	2.506
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		32835.081	33175.423	685.057
GOODWILL ON DEMERGER		171.244	0.000	0.000
PRE BID EXPENSES		0.000	0.000	6.608
DEFERRED TAX ASSETS		0.000	0.000	0.168
CURRENT ASSETS, LOANS & ADVANCES
	Cash & Bank Balances	1.669	5.959	8.060
	Loans & Advances	1.213	458.231	400.439
Total Current Assets		2.882	464.190	408.499
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.109	55.318	167.267
	Provisions	0.000	0.000	0.000
Total Current Liabilities		0.109	55.318	167.267
Net Current Assets		2.773	408.872	241.232
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		33009.099	33587.417	935.571

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover [including other income]		0.497	58.517
Total Income		0.497	58.517
Profit/(Loss) Before Tax		[42.484]	30.476
Provision for Taxation		--	2.554
Profit/(Loss) After Tax		[42.484]	27.922
Expenditures :
	Financial charges	0.000	0.361
	Depreciation & Amortization	0.000	0.134
	Other Expenditure	42.981	27.546
Total Expenditure		42.981	28.041

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	8548.08	47.71
Net Profit Margin (PBT/Sales)	(%)	8548.08	52.08
Return on Total Assets (PBT/Total Assets}	(%)	1474.11	6.52
Return on Investment (ROI) (PBT/Networth)		0.001	0.03
Debt Equity Ratio (Total Liability/Networth)		0.000	67.86
Current Ratio (Current Asset/Current Liability)		26.44	8.39

LOCAL AGENCY FURTHER INFORMATION

NA

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. 39.38
UK Pound	1	Rs. 80.96
Euro	1	Rs. 56.81

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--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	NO
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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