MIRA INFORM REPORT

Report Date :

29.07.2008

IDENTIFICATION DETAILS

Name :	SHYAM TELELINK LIMITED
Formerly Known As :	TELELINK NETWORK (INDIA) LIMITED
Registered Office :	Bachawat House, B2-D, Shiv Marg, Bani Park, Jaipur - 302 016, Rajasthan,
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	26/08/2002
Com. Reg. No.:	17-17779 (New) 67528 (Old)
CIN No.: [Company Identification No.]	U99999DL1995PTC067528 U64201RJ2002PTC017779
Legal Form :	Closely held Public Limited Liability Company. The company is a subsidiary of Shyam Telecom Limited.
Line of Business :	Subject is the licensee for providing Basic Telephone Service in the State of Rajasthan.

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.	Small

Maximum Credit Limit :	USD 773000
Status :	Moderate
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Shyam Telecom Limited, a well established and reputed company having satisfactory track. Trade relations are fair. It has huge accumulated losses. Financial position is moderate. The company can be considered for normal business dealings at usual trade terms and conditions with some caution.

LOCATIONS

Registered Office :	Bachawat House, B2-D, Shiv Marg, Bani Park, Jaipur – 302 016, Rajasthan, India
Tel. No.:	91-141-2500382
Fax No.:	91-141-2500390
E-Mail :	delaab82@giasdl01.vsnl.net.in cs@hellorainbow.com
Website :	http://www.hellorainbow.com
Head Office :	Rainbow Towers, 3-Rainbow Circle, Vaishali Nagar, Jaipur, Rajasthan, India
Tel. No.:	91-141-25100343
Fax No.:	91-141-25100390
E-Mail :	delaab82@giasdl01.vsnl.net.in
Website :	http://www.hellorainbow.com
Factory 1 :	246, Phase IV, Udyog Vihar, Gurgaon – 122 015, Haryana
Tel. No.:	91-124-340807
Fax No.:	91-124-341475
Branches :	Jaipur Office  Raghu Prakash Building, C-30, C-scheme, Jaipur-21. Ph. 0141-5100669 Rainbow Showroom  B 8-9, Gaurav Tower-1, Malviya Nagar, Jaipur-17. Ph. 0141-5111114 Jodhpur Office   Rainbow Tower, C-45, PWD Colony, Jodhpur-01. Ph. 0291-5100415 Udaipur Office  4-C, Ganpat Bhawan, Sardarpura, Meera Girls College Road, Udaipur-01. Ph.0294-5100971 Bhilwara Office  F-72, Bhilwara Textile Market, Pur Road, Bhilwara. Ph.01482-510574 Ajmer Office  K C Complex, Hospital Road, Opp. Daulat Bagh, Ajmer-01. Ph. 0145-5101509 Sri Ganganagar Office  102 , 103 , jawahar Nagar , ganga Path Hanumangarh Office  Plot No.16, Sector 6 , hanumagarh Junction Sikar Office  Shop No. 1,2,5 & 7 , Station Road , near Maru mandir Bhiwadi Office  E 2 A , Near Fire Station , Phoolbagh Chowk 510870 Alwar Office  Manahar Villa , Jail Ka Chouraha 510870 Kotputli Office  Ward No.5 , Plot No. 6 , Near BSNL Exchange 512803 Pali Office  RIICO Industrial Area , Behind Pali Co-operative bank , Mandi ka Road, Pali 513030 Sojat Office  22,23 RIICO Industrial Area Mode , Bhatta 513013 Kishangarh Office  Shop No.2 & 3 , Tilak Marriage hall , Tilak Nagar , Madangarj , Kishangah 510538 Beawer Office  Shop No.28 , shanti Towers . Ground Floor , Outside Chang Gate , Beawer 510545

DIRECTORS

Name :	Mr. Rajiv Mehrota
Designation :	Chairman and Managing Director
Address :	A-9, Naraina Vihar, New Delhi, VCT of Delhi-110028
Date of Birth/Age :	05.08.1954
Qualification :	Post Diploma in Radio and TV 27 years
Date of Appointment :	20.04.1995
Last Employments Held:	Shyam Telecom Limited as Chairman and Managing director
Name :	Mr. Suneel Vohra
Designation :	President
Date of Birth/Age :	42 years
Qualification :	B. Com. DBM 24 years
Date of Appointment :	01/12/2001
Last Employments Held:	Shyam ACS India private Limited as President
Name :	Mr. Ajay Khanna
Designation :	Managing Director
Address :	A-9, Naraina Vihar, New Delhi, VCT of Delhi-110028
Date of Birth/Age :	25/01/1956
Date of Appointment :	20/04/1995
Name :	Mr. Alok Tandon
Designation :	Managing Director
Address :	Lcgo4 PHD the Luburnum Apartment Near Sushant Lok, Sector – 28, Gurgaon Haryana-122002
Date of Birth/Age :	05/03/1961
Date of Appointment :	20/04/1995
Name :	Mr. K. N. Mehrotra
Designation :	Director
Name :	Mr. S. S. Puri
Designation :	Director
Name :	Mr. N. Kumbhat
Designation :	Director
Name :	Ms. Shyama Mehrotra
Designation :	Directors
Name :	Mr. Rajesh Mehra
Designation :	Director
Name :	Mr. Arun Khanna
Designation :	Director
Name :	Mr. Hemant Kumar
Designation :	Director
Address :	79, Vasant Enclave, New Delhi- 110 057, India
Date of Birth/Age :	01/04/1955
Date of Appointment :	20/12/2002
Name :	Mr. B. N. Mukherja
Designation :	Director
Name :	Mr. C. S. Melhotra
Designation :	Director
Address :	C-25, Lajpatnagar New Delhi-110024
Date of Birth/Age :	01/04/1931
Date of Appointment :	21/09/2001
Name :	Mr. Amitabh
Designation :	Director (Nominee of LIC)
Address :	81, Jeevan Akash, Foriet Hill Road, Tradeo Mumbai-400036, Maharashtra
Date of Birth/Age :	01/05/1946
Date of Appointment :	11/04/2003
Name :	N. Bishambhar Makhija
Designation :	Director
Address :	307, Shalaka M.G. Road, Co-operative Mumbai ,Maharashtra-400021
Date of Birth/Age :	01/10/1939
Date of Appointment :	04/03/2002
Name :	Shyam Sunder Dawar
Designation :	Director
Address :	D-5, 13, 2^nd Floor, Vasant Vihar, New Delhi –110057
Date of Birth/Age :	11/10/1943
Date of Appointment :	24/10/2004
Name :	Suraj Kumar Agarwal
Designation :	Director
Address :	F2, Sai baba Apartment, Scheme No-8, Vaishali Nagar Jaipur –302021, Rajasthan
Date of Birth/Age :	03/11/1971
Date of Appointment :	13/09/2000

KEY EXECUTIVES

Name :	Mr. Sunil Vohra
Designation :	President
Name :	Mr. Dharmender Dhingra
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2005

Names of Shareholders	No. of Shares
Mr. Rajiv Mehrota	40
Mr. Ajay Khanna	40
Mr. S. S. Puri	10
Mr. Alok Tandon	10
Ms. Shyama Mehrotra	10
Mr. K. N. Mehrotra	10
Mr. Banwari Lal Khanna	10
Shyam Telecom Limited	455957370

BUSINESS DETAILS

Line of Business :

Subject is the licensee for providing Basic Telephone Service in the State of Rajasthan.

GENERAL INFORMATION

No. of Employees :
Bankers :	v State Bank of India Industrial Finance Branch, Barakhamba Road, New Delhi – 110 001 v United Bank of India New Delhi, India v ICICI Bank Limited New Delhi, India v Bank of Baroda New Delhi, India
Facilities :	--

Banking Relations :	Satisfactory
Auditors :
Name :	S R Batliboi & Associates Chartered Accountants
Address :	G-65, Bali Nagar, New Delhi,
Tel. No.:	91-11-25448779
Fax No.:	91-11-25449336
Parent Company :	Shyam Telecom Limited
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 31.03.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
800000000	Equity Shares	Rs. 10/- Each	Rs.8000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
455960000	Equity Shares	Rs. 10/- Each	Rs. 4559.600 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		4559.600	4559.600	4559.575
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.006
4] (Accumulated Losses)		(4405.000)	(3686.700)	(2910.167)
NETWORTH		154.600	872.900	1649.414
LOAN FUNDS
1] Secured Loans		3638.600	3622.800	3194.241
2] Unsecured Loans		687.300	0.000	0.000
TOTAL BORROWING		4325.900	3622.800	3194.241
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		4480.500	4495.700	4843.655
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4445.600	4808.600	4467.866
Capital work-in-progress		70.800	195.600	376.170
INVESTMENT		582.800	0.000	756.014
DEFERREX TAX ASSETS		0.000	0.000	0.100
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	155.200	142.400	145.465
	Cash & Bank Balances	123.000	183.200	94.770
	Other Current Assets	0.000	0.000	89.232
	Loans & Advances	83.700	82.100	0.059
Total Current Assets		361.900	407.700	329.526
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1011.400	1005.400	1238.508
	Provisions	64.700	37.600	41.584
Total Current Liabilities		1076.100	1043.000	1280.092
Net Current Assets		(714.200)	(635.300)	(950.566)
MISCELLANEOUS EXPENSES		95.500	126.800	194.071
TOTAL		4480.500	4495.700	4843.655

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1518.300	1466.300	1236.319
Other Income		5.300	2.200	0.000
Total Income		1523.600	1468.500	1236.319
Profit/(Loss) Before Tax		(714.600)	(771.100)	(217.575)
Provision for Taxation		3.700	5.400	0.000
Profit/(Loss) After Tax		(718.300)	(776.500)	(217.575)
Expenditures :
	Manufacturing Expenses	551.900	590.400	0.000
	Administrative Expenses	353.600	320.300	0.000
	Salaries, Wages, Bonus, etc.	152.600	132.600	0.000
	Power & Fuel	34.800	32.400	0.000
	Depreciation & Amortization	615.600	605.100	499.561
	Other Expenditure	529.700	558.800	954.333
Total Expenditure		2238.200	2239.600	1453.894

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	(47.14)	(52.87)	(17.59)
Net Profit Margin (PBT/Sales)	(%)	(47.06)	(52.58)	(17.59)
Return on Total Assets (PBT/Total Assets}	(%)	(14.86)	(14.78)	(4.53)
Return on Investment (ROI) (PBT/Networth)		(4.62)	(0.88)	(0.13)
Debt Equity Ratio (Total Liability/Networth)		34.94	5.34	2.71
Current Ratio (Current Asset/Current Liability)		0.33	0.39	0.25

LOCAL AGENCY FURTHER INFORMATION

Name of the company	SHYAM TELELINK LIMITED
Presented By	Suraj Agarwal, Company Secretary
1) Date and description of instrument creating the change	Trust Deed the 2^nd day of December, 2000 executed between s SHYAM TELELINK LIMITED and ICICI limited and Registered on 4.12.2000 As Modified on 12.12.2000 Unattested Memorandum of Hypothecation executed by the company in facour of ICICI limited ICICI is acting as trustees for the holders of 5000 secured redeemable Non convertible debenture of RS. 10 millions each and registered on 3.1.2001 By creating mortgage by the company in favour of ICICI byt deposit title deeds as and by way of constructive delivery with ICICI, ICICI acting for itself and as an gent. For ICICI acting in the capacity of the trustees for ht debentures in respect of the company immovable properties in order to created a security thereon as and by way of the mortgage by deposit ot title deeds pursuant to the resolution passed by the company on 30.11.2000 and registered on 3.03.2001
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 500.000 millions divided into secured Non convertible debenture of Rs. 10.000 millions.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All pieces or parcel of lands, herediraments and premises at village khurd, Mawal,Pune, in the state of Maharashtra with all erection, Godown and construction of every description All the singular the plant and machinery whether immovable or movable and wherther attached to the premises described in clause above The whole of the moveable properties of the company invluding the company moveable plant and machinery, machinery spares, tools and accessories and other movable both present and future short particulates whereof are given in the The whole of immovable property was charged in favour of ICICI
4) Gist of the terms and conditions and extent and operation of the charge.	For securi8ng the principal amount of debenture interest, default interest trustee remuneration and all money, the company assured, assigned and transferred to the trustee the whole of the mortgage premises subject also to the proviso for redemption. The company shall pay to ICICI interest on the principal amount of debenture outstanding form time to time quarterly in each year.
5) Name and Address and description of the person entitled to the charge.	ICICI Limited ICICI Towers Bandra Kurla Complex Mumbai-400058
6) Date and brief description of instrument modifying the charge	No instruments was executed but on 28^th Hune 2001, a mortgage was crated by the Company in favour of ICICI by deposit of title deeds with ICICI by deposit title deeds as and by way of constructive delivery with ICICI, ICICI acting for itself and as an gent. For ICICI acting in the capacity of the trustees for ht debentures in respect of the company immovable properties in order to created a security thereon as and by way of 28/06/2001
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The secured redeemable nonconvertible debenture of Rs. 500 millions together with interest @ 3 % p.a. over the ICICI LTPLR, additional interest. Liquidated damages, premia on prepayment, costs, charges expenses and all other monies payable by the company to IXCICI in respect anattested memorandum of hypothecation is alos now secured, inter alia by the said mortgage by deposit of title deeds in respect of the company’s immovable properties together with all building and structure thereon and all plant and machinery attached to the earth ot permanently attracted to the earth as per Annexure III
Name of the company	SHYAM TELELINK LIMITED
Presented By	Suraj Agarwal, Company Secretary
1) Date and description of instrument creating the change	07/02/2001 Loan Cum hypothecation agreement
2) Amount secured by the charge/amount owing on the securities of charge	Product Computer
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation as any by way of an exclusive first charge in favour of ICICI on the above products
4) Gist of the terms and conditions and extent and operation of the charge.	The loan shall carry interest @ 20.34 % p.a. The loan shall carry be repaid with interest in 12 acquitted monthly installments of Rs. 68258 commencing form dec. 07 2000 to October, 07, 2001 Other terms and conditions as per copy of loan cum hypothecation agreement attached
5) Name and Address and description of the person entitled to the charge.	ICICI Limited ICICI Towers Bandra Kurla Complex Mumbai-400058
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA
Name of the company	SHYAM TELELINK LIMITED
Presented By	Suraj Agarwal, Company Secretary
1) Date and description of instrument creating the change	Unattested Memorandum of Hypothecation executed by the company in facour of ICICI limited ICICI is acting as trustees for the holders of 5000 secured redeemable Non convertible debenture of RS. 10 millions each and registered on 3.1.2001 As modified on 12.12.2000 by creating mortgage by the company in favour of ICICI by deposit of title deeds related to additional immovable properties. As modified on 28/06/2001 by creating mortgage by the company in favour of ICICI by deposit of title deeds related to additional immovable properties.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 500 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of the moveable properties of the company invluding the company moveable plant and machinery, machinery spares, tools and accessories and other movable both present and future short particulates whereof are given in the-A- 1
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of ICICI having agreed to lend and advance to the company the loan agreement by the company. Covenant by the company to repay the loan and pay interesst and all other monies in the manner set out in the loan monies in the manner set out in the terms and conditions of the said loan agreement. The said goods were thereby hypothecation to ICICI as and by way oif first charge of All pieces or parcel of lands, herediraments and premises at village khurd, Mawal,Pune, in the state of Maharashtra with all erection, Godown and construction of every description All the singular the plant and machinery whether immovable or movable and wherther attached to the premises described in clause above The whole of the moveable properties of the company invluding the company moveable plant and machinery, machinery spares, tools and accessories and other movable both present and future short particulates whereof are given in the The company to keep the said goods in marketable and good conditions and also insured as provided therein. Power of entry, power to take charge and possession of seize srecover by public auction of private contract dispatch for realization of relisataion or otherwise dispose off or deal with all or any part of the said goods
5) Name and Address and description of the person entitled to the charge.	ICICI Limited ICICI Towers Bandra Kurla Complex Mumbai-400058
6) Date and brief description of instrument modifying the charge	Composite hypothecation agreement dated 28/12/2001 executed by Shyam Tetelinks Limited in favour of Babk Of Baroda Memorandum of entry dated 31.12.2001 excited by ICICI limited acting for itself and a agent of BOB creation of equipments mortgage in favour of BOB on Pari passu basis pursuant to directors of company on 12.12.2001
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The movable assets as destcibed in Annuxre – I and immovable assets in schedule I and schedules II of Memorandum of entry dated 31.02.2001 stand charged to BOB on Pari Passu basis with ICICI limited to secure following credit facilities sanctioned by BOB to the company Rupee Term Loan Rs. 400 millions Guarantee Facility : Rs. 102.000 millions The board terms and condition of sanction of the credit facility aggregating to Rs. 502.000 millions by BOB as under Rate of interest @ 4 % ovser BOB Limited prime lending rate 11.5 % i.e. at present 15.5 % p.a. with quarterly rest Assignment of the license in favour of the lenders or an undertaking to assign the license when permitted by Date of Appointment in addition the company shall provide a negative lien on assignment of the lience till such time the license is assigned to the satisfaction of the lenders.
Name of the company	SHYAM TELELINK LIMITED
Presented By	Suraj Agarwal, Company Secretary
1) Date and description of instrument creating the change	Unattested Memorandum of Hypothecation dated 28/6/2001 executed by the company in facour of ICICI limited ICICI is acting as trustees for the holders of 5000 secured redeemable Non convertible debenture of RS. 10 millions each and registered on dated 28/6/2001 As modified on 28/06/2001 by creating mortgage by the company in favour of ICICI by deposit of title deeds related to additional immovable properties.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 600 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of the moveable properties of the company invluding the company moveable plant and machinery, machinery spares, tools and accessories and other movable both present and future short particulates whereof are given in the-A- 1
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of ICICI having agreed to lend and advance to the company the loan agreement by the company. Covenant by the company to repay the loan and pay interesst and all other monies in the manner set out in the loan monies in the manner set out in the terms and conditions of the said loan agreement. The said goods were thereby hypothecation to ICICI as and by way oif first charge of All pieces or parcel of lands, herediraments and premises at village khurd, Mawal,Pune, in the state of Maharashtra with all erection, Godown and construction of every description All the singular the plant and machinery whether immovable or movable and wherther attached to the premises described in clause above The whole of the moveable properties of the company invluding the company moveable plant and machinery, machinery spares, tools and accessories and other movable both present and future short particulates whereof are given in the The company to keep the said goods in marketable and good conditions and also insured as provided therein. Power of entry, power to take charge and possession of seize srecover by public auction of private contract dispatch for realization of relisataion or otherwise dispose off or deal with all or any part of the said goods
5) Name and Address and description of the person entitled to the charge.	ICICI Limited ICICI Towers Bandra Kurla Complex Mumbai-400058
6) Date and brief description of instrument modifying the charge	Composite hypothecation agreement dated 28/12/2001 executed by Shyam Tetelinks Limited in favour of Babk Of Baroda Memorandum of entry dated 31.12.2001 excited by ICICI limited acting for itself and a agent of BOB creation of equipments mortgage in favour of BOB on Pari passu basis pursuant to directors of company on 12.12.2001
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The movable assets as destcibed in Annuxre – I and immovable assets in schedule I and schedules II of Memorandum of entry dated 23/12/2001stand charged to BOB on Pari Passu basis with ICICI limited to secure following credit facilities sanctioned by BOB to the company Rupee Term Loan Rs. 400 millions Guarantee Facility : Rs. 102.000 millions The board terms and condition of sanction of the credit facility aggregating to Rs. 502.000 millions by BOB as under Rate of interest @ 4 % ovser BOB Limited prime lending rate 11.5 % i.e. at present 15.5 % p.a. with quarterly rest Assignment of the license in favour of the lenders or an undertaking to assign the license when permitted by Date of Appointment in addition the company shall provide a negative lien on assignment of the lience till such time the license is assigned to the satisfaction of the lenders.

Fixed Assets :

Ø Freehold Land

Ø Leasehold land

Ø Leasehold

Ø Building

Ø Optical Fiber and Copper cable

Ø Computer

Ø Furniture and Fixture

Ø Office Equipments

Ø Vehicles

HISTORY

The company was incorporated on 20^th April, 1995 at New Delhi, India under the name and style of Telelink Network (India) Limited having Company Registration Number 55-67528

The company converted as “Shyam Telelink Limited” at Jaipur, India w.e.f. 26^th August, 2002.

Shyam Telelink Limited is a subsidiary of Shyam Telecom Limited and has been providing Basic telephony services in the state of Rajasthan.The services provided by the company includes Basic Telephony,WLL,Data & Image service and various other value added services.

PROFILE :

The company is basic Telecom Services Licensee for the state of Rajasthan. The services offered to the subscribers are through wireless as well as wireline network. The services are being provided under the brand names "Rainbow" & "Citymobile" . The company provides high bandwidth and self protected backbone which provide highly reliable super highway connecting various cities in the ring.

The License Agreement with the DoT was signed on March 4, 1998. With effect from August 1, 1999 the company migrated to revenue sharing arrangement under the New Telecom Policy 1999 from fixed license fee payable earlier under the License Agreement. The license period extended from 15 years to 20 years under the New Telecom Policy 1999.

The company plans to set up a state of the art broad band network on the convergence platform in Rajasthan. It plans to provide not only the traditional voice telephony services but also the enhanced telephony services like phone plus, voice mail, ISDN lines, leased lines, virtual private network, centrex, etc.

It further proposes to build an Optic Fibre Backbone spread across the state.

The company had earlier awarded the contracts for supply, installation, maintenance and services for Wireless in Local Loop System (WLL) to Qualcomm Inc., USA its' subsidiaries and affiliates. Due to various reasons and disputes the parties decided to terminate and settle the contract.

The company was awarded contract for supply, installation and commissioning for CDMA based WLL, Wire-Line equipment, supply and laying of optical fibre backbone network to Lucent Technologies Hindustan Limited, a majority owned subsidiary of Lucent Technologies Inc., USA.

The company was also awarded the contracts for supply and installation of Billing and Customer Care System and accounting system to Cincom Systems (India) Private Limited, a wholly owned subsidiary of Cincom Inc., USA.

The company launched commercial services under the "RAINBOW" brand in Jaipur City in the month of June, 2000. The implementation work is going on in Rajasthan. A WLL and a Wireline switch installed and commissioned at Jaipur. The network implementation in other cities is also progressing well.

The company plans to install 8 main switching units at Jaipur (2 Nos.), Jodhpur, Udaipur, Kota, Bikaner, Ajmer and Alwar over the first five complete years of operations. It also plans to cover 12 cities in the first two years of operation. These collectively account for about 66% of the target subscriber base and about 45% of the total subscriber base in Rajasthan as at the end of March, 1999. The coverage is proposed to be expanded to 22 cities by the end of the first five years of operation. These cities account for more than 80% of target subscriber base and over 65% of the aggregate subscriber base of Rajasthan.

As the company did not commenced the commercial operations and not earned any distributable profits.

The company wish to place their appreciation to the Department of Telecommunication (DoT), the Government of India, Government of Rajasthan, Bankers and Financial Institutions for their support, assistance and valuable guidance from time to time.

The company’s fixed assets of important value include land, computer, furniture and fixtures, office equipments and vehicles.

PRODUCTS AND VALUE ADDED SERVICES

The company continuously endeavors to provide best advantage to its growing customer base through widest coverage, innovative products and responsive services at competitive prices.

The company provide innovative product and services like fixed Telephone, Mobile phone, ISDN, PCO Coin collection Box along with an entire gamut of value added services to provide one stop with an entire gamut of value added services to provided one stop access to the world of information. These value added services have been happiness and comfort to him.

Providing customized state of the art telecom solutions at an affordable price is the basic objective of The company. The company successfully launched many innovative plan options for various market segments and customer categories in this financial year as well.

The Company is providing its customers with a plethpra of value added services for enhancing the experience of using telecom services, namely: Unified Messaging Services, Phone-to-mail, Faxto- mail, Email Reader,Tambola Game Shows, Fonemail, Car Help line, Cricket On Line, Music On Line,Juke Box, Quiz Services Etc. The Hello Calling Cards and SMS services launched earlier have received a very enthusiastic response from customers. After being the first to launch above services, The Company launched many new products like VAS on SMS and special occasion based IVR services keeping in mind the diverse customer segments. The company has the rare distinction of providing more than 40 such IVR based services to its

customers, thereby making the Rainbow phone as a valuable personal and lifestyle accessory.

As per website details

PRESS RELEASES :

Shyam Telelink Awards QUALCOMM $45 Million CDMA Wireless Local Loop Contract for Rajasthan, India

SAN DIEGO - August 26, 1998 - QUALCOMM Incorporated (NASDAQ: QCOM) announced a signed contract with Shyam Telelink Limited to supply a turnkey cdmaOne™ (IS-95 Code Division Multiple Access) Wireless Local Loop (WLL) network to the Rajasthan region of India. Shyam Telelink Limited is licensed to deploy an 800 MHz CDMA WLL system to provide much-needed telephone services to the region, where many customers are currently waiting for telephone service. Under the terms of the agreement, QUALCOMM will supply up to $45 million of CDMA infrastructure equipment, wireless telephones and deployment services."It is a landmark opportunity for QUALCOMM to participate in Shyam Telelink's project to increase teledensity and improve telecommunications for Rajasthan's 51 million people," said Marshall Towe, Jr., vice president for QUALCOMM's Wireless Infrastructure Division. "They share Telelink's vision of accessible, high-quality, reliable and secure communications for each city, town and village in the region, and they look forward to working with Telelink's engineering teams to ensure a rapid and efficient networkdeployment." Deployment of the network is expected to begin in the fourth quarter of 1998 in the city of Jaipur, with expansion into surrounding towns and villages expected shortly thereafter.

The network is expected to serve over 23 urban areas within the first year of operation and to offer a combination of fixed and limited mobility services to subscribers."They selected QUALCOMM to deploy their CDMA network not only because they have already successfully demonstrated their CDMA WLL capabilities in India, but also because of their advanced CDMA products, technical expertise and deployment experience around the world," said Rajiv Mehrotra, chairman of Shyam Telelink Limited. "With CDMA, they will be able to provide wireline-quality telephone service to even the most remote areas of Rajasthan." "In a region where significant subscriber growth is expected as soon as wireless telephone services become available, a CDMA network from the leading wireless local loop vendor -- QUALCOMM -- is the best choice for Telelink to meet capacity and quality requirements," said B.A. Majmudar, president of QUALCOMM's Wireless Infrastructure Operations in India. "They commend Telelink for its leadership in selecting QUALCOMM CDMA, and with this agreement, they renew their commitment to India and to providing the highest quality communications to their customers."QUALCOMM will provide Shyam Telelink Limited with its 800 MHz QCell™ base stations, QCore™ switching and base station controller equipment, and wireless local loop telephones. The system will be designed using QUALCOMM's industry-leading network planning software tool, QEDesign®. QUALCOMM will also provide a range of deployment services, including installation, commissioning and optimization.QUALCOMM supplied and installed the first CDMAWLL network in India, a commercial system that has been serving New Delhi customers since May 1997. QUALCOMM has emerged as a leader in the WLL arena with deployments underway throughout Asia, Africa, the Commonwealth of Independent States and the Americas. As the pioneer of CDMA technology, QUALCOMM is able to design and manufacture products that optimize cdmaOne technology to its greatest potential, providing high-performance networks to operators all over the world. Shyam Telelink Limited was incorporated in 1995 for the purpose of establishing and operating basic telephone services in India and was promoted by Shyam Telecom Limited.Headquartered in San Diego, California, QUALCOMM develops, manufactures, markets, licenses, and operates advanced communications systems and products based on its proprietary digital wireless technologies.

The Company's primary product areas are the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products, and in conjunction with others, the development of the Globalstar™ low-earth-orbit (LEO) satellite communications system. Other company products include the Eudora Pro® electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information on QUALCOMM products and technologies, please visit the Company's web site at http://www.qualcomm.com. Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development and change in economic conditions of the various markets the Company serves.

The described transaction is subject to a number of customary representations and warranties, as well as a number of conditions precedent to the party's obligations. These and other risks are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 28, 1997 and most recent Form 10-Q.

PRESS RELEASES :

Saturday, July 05, 2008:  Shyam Telelink Ltd, the Indian subsidiary of Russia's Sistema, has selected ZTE, Alcatel-Lucent, and Huawei Technologies to supply equipment for construction of CDMA 800 MHz mobile network in India. Each vendor will be allocated a certain geographical region in India for the deployment of equipment.

The contract includes equipment delivery (including base stations, main radio- and switching subsystems and other auxiliary equipment) and provision of services related to network design, installation, start-up and commissioning.

Raymond Armes, president, Shyam Telelink, commented, "They have chosen ZTE, Alcatel-Lucent and Huawei Technologies as their vendors based on the competitive advantages of their equipment and their capabilities to implement complex nation-wide projects."

Shyam Telelink now has spectrum in 19 telecommunications circles, covering 27 Indian states with a population of 1,066.5 million people (which comprise around 94.5 per cent of Indian population).

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 records 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.42.30
UK Pound	1	Rs.84.03
Euro	1	Rs.66.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	5
--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		32

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