MIRA INFORM REPORT

Report Date :

11.10.2008

IDENTIFICATION DETAILS

Name :	BHARTI TELETECH LIMITED
Registered Office :	D-195, Okhla Industrial Area, Phase I, New Delhi – 110 020, India
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	31.03.1999
Com. Reg. No.:	55-123394
CIN No.: [Company Identification No.]	U32204DL2003PLC123394
TAN No.: [Tax Deduction & Collection Account No.]	DELB05908A
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer of Telecom Equipments, Electrical Computers, Circuit Boards and Ultrasound Equipments.

RATING & COMMENTS

MIRA’s Rating :

Ba

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 4900000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Exist
Comments :	Subject is a part of Bharti Telecom Group, managed by Mr. Sunil Mittal, a first generation entrepreneur. Trade relations are reported as fair. General financial position is satisfactory. Profit margin is under severe pressure. Payments are reported as slow but correct. Your proposed business dealings can be considered against normal trade terms and conditions.

LOCATIONS

Registered Office :	D-195, Okhla Industrial Area, Phase I, New Delhi – 110 020
Tel. No.:	91-11-241709600-05
Fax No.:	91-11-241709629
E-Mail :	usrinivas@bttindia.com
Website :	http://www.bharti-teletech.net
Head Office/Corporate Office :	Qutab Ambience, (Near Qutab Minar), H-5/12, Ward No. 1, Mehrauli Road, New Delhi - 110 030, India
Tel. No.:	91-11-26961321/26961327/51666119/51666120
Fax No.:	91-11-51666126
Regional Offices:	Delhi: D-195, Okhla Industrial Area, Phase-I, New Delhi - 110 020 Tel : (011) 4170 9601-05 Fax : (011) 4170 9629 Mumbai: 401 , Pramukh Plaza , Chakala , Andheri (East) , Mumbai – 93 Tel : (022) 28321456/58/59/62 Fax : (022) 28321463 Kolkata: 4th Floor, Room No. 8, Shantiniketan Building, 8, Camac Street, Kolkata 700017 Tel: 033-22828473 / 22825102 Bangalore: No. 76, 36th Main, Dollar Scheme Block Extension, BTM Layout, Bangalore – 69 Tel: (080) 5110 2201-02 Fax: 91-080-25630545 / 546
Factory 1 :	1-4, Rural Industrial Complex, Village Humbran,Ludhiana - 140 110 Punjab, India
Tel. No.:	91-161-2871261 / 2871
Fax No.:	91-161-2871361
Factory 2 :	Plot No. 46-50, Mapusa Industrial Estate, Mapusa, Goa - 403507
Branches :	WEST RO v Maharashtra, Mumbai v Bhiwandi Warehouse Bhiwandi v Kurla (East Mumbai) v Pure Warehouse Rest of Maharashtra v Nagpur Warehous v M.P Any Town of M.P v Chhatisgarh any Town of Chhattisgarh SOUTH RO v Karnataka Bangalore Office and warehouse all Towns of Karnatka v Tamilnadu All towns of Tamilnadu v Pondicherry v A P All towns of AP v Kerala All Towns of Kerala EAST RO v Kolkata Office v Kolkatta Warehouse v Bihar v Jharkhand v Orissa v Assam NORTH RO v Delhi v Rajasthan v J and K v Punjab v Uttranchal v Noida v Chandigarh v Haryana v Himachal Pradesh v Lucknow v Goa

DIRECTORS

Name :	Mr. Sunil Bharti Mittal
Designation :	Chairman
Date of Birth/Age :	23.10.1957
Date of Appointment :	30.03.1999
Name :	Mr. Rakesh Bharti Mittal
Designation :	Vice Chairman and Managing Director
Date of Birth/Age :	18.09.1955
Qualification :	Electronic Engineer
Experience :	29 Years
Date of Appointment :	21.09.2000
Previous Employment	Managing Director of Bharti Telecom Limited
Name :	Mr. Pawan Kapur
Designation :	Whole Time Director and Chief Executive Officer
Date of Birth/Age :	04.06.1950
Date of Appointment :	01.07.2002
Name :	Mr. Rajan Bharti Mittal
Designation :	Director
Date of Appointment :	30.03.1999
Name :	Mr. Akhil Gupta
Designation :	Director
Date of Birth/Age :	22.12.1955
Date of Appointment :	25.11.2000
Name :	Mr. K. L. Jain
Designation :	Director
Date of Birth/Age :	06.10.1949
Date of Appointment :	27.09.2000
Name :	Mr. G. K. Aggarwal
Designation :	Director
Date of Birth/Age :	25.10.1948
Date of Appointment :	27.09.2000
Name :	Mr. Kailash Chandra Mehra
Designation :	Director
Date of Birth/Age :	06.12.1921
Date of Appointment :	01.07.2002
Name :	Mr. K. Virendra Bhussry
Designation :	Director
Date of Birth/Age :	28.02.1930
Date of Appointment :	01.07.2002
Name :	Mr. Badri Agarwal
Designation :	Additional Director

KEY EXECUTIVES

Name :

Mr. Sudhir Khullar

Designation :

Company Secretary and Vice President

Date of Birth/Age :

28.07.1960

Date of Appointment :

16.03.2001

Other Personnel:

Mr. J. K. Dudani	Chief (International Marketing Exports)
E Mai	dudani@bttindia.com
Mr. Lokesh Nagpal	Deputy Chief – International Marketing
E Mail	lokesh@bttindia.com
Mr. Puneet Chowdhary	Deputy Chief – International Marketing Exports
E Mail	puneet@bttindia.com

Name :

Mr. Sumit Sehgal

Designation :

General Manager – Marketing

Date of Birth/Age :

41 Years

Qualification :

MBA ( Marketing)

Date of Appointment :

02.01.2003

Name :

Mr. Satish Upganlawar

Designation :

Head Corporation HR

Date of Birth/Age :

44 Years

Qualification :

B.Sc. M.P.M

Date of Appointment :

01.05.2006

Name :

Mr. Arvind Ahuja

Designation :

CFO

Date of Birth/Age :

48 Years

Qualification :

CA, ICWA

Date of Appointment :

01.08.2007

Name :

Mr. Harish Goyal

Designation :

General Manager (Export)

Date of Birth/Age :

38 Years

Qualification :

BE (Electronics)

Date of Appointment :

05.12.2005

Date of Ceasing:

12.02.2008

Name :

Mr. Mahesh Jain

Designation :

Genral Manager Finance

Date of Birth/Age :

38 Years

Qualification :

B.Com, CA, LLB

Date of Appointment :

12.08.2005

Date of Ceasing:

27.06.2007

Name :

Mr. Navdeep Bhatia

Designation :

Joint General Manager

Date of Birth/Age :

38 Years

Qualification :

BE, EMIT

Date of Appointment :

01.07.2007

Name :

Mr. Ravinder Arora

Designation :

General Manager (Corporation Finance)

Date of Birth/Age :

47 Years

Qualification :

B.Com, ICWA

Date of Appointment :

01.10.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Bharti Global Limited	2460645	48.54
Bharti Overseas Trading Company	1246948	24.59
Bharti Enterprises Private Limited	1120825	22.11
Others	241589	4.76
Total	5070007	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Telecom Equipments, Electrical Computers, Circuit Boards and Ultrasound Equipments.

Products :

Product Description	Item Code No. (ITC Code)
Push Button Telephones	851711-01
Cordless	851711-03

v Slim line telephones

v Basic telephones

v Feature phones

v Caller ID boxes

v Boss Secretary phones

v Cordless phones

v SMS phones

v ADSL products

v Fixed Wireless Terminals

v Fixed Cellular Terminals

Brand Names :

“BEETEL”, “MOD” and “BHARTI”.

Exports :

Countries :

· USA

· South America

· Eastern Europe

· Middle East

· South East Asia

· Africa

Terms :

Selling :

Credit terms

Purchasing :

L/C terms

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Customer Premises Equipment	Nos.	4500000	3035141

GENERAL INFORMATION

Customers :

v Siemens

v Sprint Corporation, Usa

v Akai Corporation

v Mauritius Telecom

v Oman Telecom

Bankers :

v State Bank of India, Gurgaon, Haryana

v Citi Bank

v IDBI Bank Limited

Facilities :

SECURED LOAN	31.03.2008 Rs. In Millions
From Banks #
Cash Credit and Foreign Currency Working Capital Loan	75.120
Total	75.120
UNSECURED LOAN	31.03.2008 Rs. In Millions
Short Term Loans and Advances
From Holding Company	3.350
Interest Accrued and due thereon	0.440
Total	3.790

# Secured against the hypothecation of Stocks of Motorola Products), Bookdebts and Other Current Assets of the company and First Charge on all the fixed assets of the company.

Banking Relations :	Satisfactory
Auditors :
Name :	J. C. Bhalla and Company Chartered Accountants
Address :	A-18, Nizamuddian West, New Delhi
Holding Company:	Bharti Enterprises ( Holding) Private Limited
Associates/Subsidiaries :	v Bharti Infotrac Private Limited v Bharti Enterprises Private Limited v Bharti Televentures Limited v Bharti Healthcare Limited v Bharti Telecom Limited v Bharti Telesoft Private Limited v Bharti Telecom Finance Limited v Bharti Foundation v Bharti Cellular Limited v Bharti Infotel Limited v Bharti Infranet Private Limited v Bharti Telesoft International Private Limited v Teletech Services (India) Private Limited v Tulip Projects Private Limited v Bharti Global Limited v Jasmin Projects Private Limited v Bharati Ventures Limited v Bharti Airtel Limited v First American Securities Private Limited v Field Fresh Foods Private Limited v Bharti AXA Life Insurance Company Limited v Bharti Telemedia Limited v Bharti Retail Private Limited v Lily Projects Private Limited v Ambience Realty Private Limited v Primrose Projects Private Limited SUBSIDIARIES Goa Telecommunications and Systems Limited Line of Business : Manufacturers & Exporters of telephone equipments Bharti Systel Limited Line of Business : Manufacturers and exporters of telephone equipments Bharti Infotrac Limited Line of Business : IT Enabled Services

CAPITAL STRUCTURE

As on 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs. 10/- each	Rs. 55.000 Milllions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5070007	Equity Shares	Rs. 10/- each	Rs. 50.700 Millions
	Of the above Equity Shares: i) 5070000 Shares are allotted as fully paid up pursuant to scheme of arrangement without payment being received in cash ii) 3615529 Shares are held by Holding Company - Bharti Exterprises (Holding) Private Limited

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		50.700	50.700	50.700
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		948.650	1729.770	1454.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		999.350	1780.470	1505.300
LOAN FUNDS
1] Secured Loans		75.120	560.100	441.300
2] Unsecured Loans		3.790	8.350	0.000
TOTAL BORROWING		78.910	568.450	441.300
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1078.260	2348.920	1946.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		172.130	403.520	269.800
Capital work-in-progress		0.000	18.530	70.500
INVESTMENT		298.240	245.220	359.700
DEFERREX TAX ASSETS		38.450	46.920	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1215.130	5148.650	1459.500
	Sundry Debtors	722.300	1190.710	496.600
	Cash & Bank Balances	141.980	507.380	389.100
	Other Current Assets	6.450	2.830	0.000
	Loans & Advances	463.180	606.210	670.200
Total Current Assets		2549.040	7455.780	3015.400
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1820.110	5652.720	1510.700
	Provisions	159.490	168.820	261.300
Total Current Liabilities		1979.600	5821.540	1772.000
Net Current Assets		569.440	1634.240	1243.400
MISCELLANEOUS EXPENSES		0.000	0.490	3.200
TOTAL		1078.260	2348.920	1946.600

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		15421.820	24333.950	6642.800
Other Income		164.790	166.740	0.000
Total Income		15586.610	24500.690	6642.800
Profit/(Loss) Before Tax		321.610	479.030	459.100
Provision for Taxation		128.800	194.940	109.500
Profit/(Loss) After Tax		192.810	284.090	349.600
Earnings in Foreign Currency :
	FOB Value	269.580	275.060	265.950
	Freight and Insurance	0.840	4.470	NAl
	Other Earnings	Nil	0.110	NA
Total Earnings		270.420	279.640	265.950
Imports :
	Raw Materials	297.990	515.240	1555.980
	Plant and Machinery and other Capital Goods	3.120	6.740	NA
	Finished Goods	2083.730	2574.160	NA
	Stores and Spares	4.160	29.550	NA
Total Imports		2389.000	3125.690	1555.980
Expenditures :
	Cost of Material	13980.030	22674.380
	Manufacturing Expenses	25.760	34.600
	Administrative Expenses	1179.230	1246.600	6183.700
	Financial Expenses	51.620	68.320
	Depreciation & Amortization	34.850	38.940
	Exceptional and Prior period Adjustment	[6.490]	[41.180]
Total Expenditure		15265.000	24021.660	6183.700

KEY RATIOS

Particulars	31.03.2008	31.03.2007	31.03.2006
Debt Equity Ratio	0.23	0.31	0.21
Long Term Debt Equity Ratio	0.00	0.00	0.00
Current Ratio	1.17	1.21	1.54
TURNOVER RATIOS
Fixed Assets	29.43	44.62	11.30
Inventory	4.82	7.38	6.07
Debtors	16.26	29.12	14.14
Interest Cover Ratio	7.23	6.87	13.29
Operating Profit Margin (%)	2.62	2.07	8.03
Profit Before Interest and Tax Margin (%)	2.40	1.91	7.41
Cash Profit Margin (%)	1.46	1.13	5.91
Adjusted Net Profit Margin (%)	1.24	0.97	5.29
Return on Capital Employed (%)	21.77	21.86	23.85
Return on Net Worth (%)	13.87	14.50	20.55

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Bharthi Teletech Limited, a Bharathi Mittal Group company, is into manufacturing of telecom equipments i.e telephone instruments. The company has taken over the manufacturing and marketing business activities of Bharti Telecom Limited,(a Group company), the purpose for which it is incorporated. The sharehoders of Bharathi Telecom Limited(BTL) got 3 shares of Bharathi teletech for every share he had in BTL under this demerger scheme. 

Push Button Telephones(EPBT) and cordless phjones are the major products of the company and it has an installed capacity of 3.6 mln EPBT phones per annun and 18,000 cordless phones per annum. BSNL(erstwhile DOT) and MTNL are the two major customers of the company.

Bharti Systel Limited(formerly Siemens Telecom Limited) has become a wholly owned subsidiary of the company consequent to the divestment of entire shareholding in BSL by Siemens Limited 

The company is undertaking a restructuring excercise with its policy of giving specialised/exclusive focus on its core activity. As per the said scheme the company has decided to exit from M/s Bharti Dura-Line Limited a Joint Venture with Duraline Corporation Limited The company has also decided to transfer its Ludhiana manufacturing facility to Bharati Systel as a going concern w.e.f April 1, 2001. In this regard it has signed an memorandum with Bharathi Systel.

BUSINESS REVIEW

During 2007-08, the Company alongwith Subsidiary M/S Goa Telecommunications and Systems Limited (GTSL), has achieved a gross revenue of Rs 15593.060 Millions ( Previous Year Rs. 24919.060 Millions) with the Sale of Communication and media Device Equipments aggregating over 9.250 Millions Number (Previious Year over 13.000 Millions)

The company achieved yet another landmark by making foray into mobile phone business by launching ultra low cost feature rich mobile phones under its ‘beetel’ brand starting with bundling offer of BSNL. The company has till date produced over 40.000 Millions phones with sim card reader and FM Radio. The Company also Strengthened its business relationship with leading Telecom Services Providers like Airtel, Tata by supplying them high end GSM Related Products (FWT/ FWP/ GSM Modem)

During the year, the Company has moved into distribution of ‘Polycom’ voice and Video Conference Products which have strong demand in the domestic Indian market. After making its mark in the manufacturing and with the current success of Distribution business, the Company is exploring apportunities to add more products to its distribution portfolio.

The company has bagged prestigious awards – All India award for excellence in exports of Telecommunications equipments for the year 2006-07, Golden Peacock National Training Award 2007 for excellence in manufacturing.

FUTURE PLANS:

The company is poised for significant Growth with new partnerships and exporting opportunities of expanding its existing products portfolio, besides being committed to bring in latest technologies, introduce the best process and systems and focus on company and skill development of employees to promote a culture of quality and innovation.

DEMERGER OF NON CORE UNDERTAKING:

During the year, the Non-Core Business Undertaking of the Company Comprising of Development and Maintenance of Infrastructure facilities for IT/ Data/ Call Centre Activities and Investments of Funds in Mutual Funds, Banks, Bodies Corporate, Market Securities etc, was hived off and merged with Jasmin Projects Private Limited under the Scheme of Arrangement duly sanctioned by the Hon’ble High Court of Delhi vide its Order dated 5^th March 2008.

Notes on Account:

Contingent Liabilities (As certified by the Management):

a) Claim against the company not acknowledged as debt

i) Income tax Demand pending appeal Rs. 3.470 Millions (Previous Year R.s 7.160 Millions) against which NIL (Previous Year Rs. 3.190 Millions) has been paid under protest and included under the head “Advance Tax”

ii) Sales Tad demand Rs. 107.060 Millions (Previous Year Rs. 131.710 Millions) against which Rs. 5.650 Millions (Previous Year Rs. 5.540 Millions) has been paid under protest/ Court order and included under the head “Advances Recoverable”

iii) Excise duty and Services Tax Demand R.s 0.700 Millions (Previous Year R.s 68.350 Millions) against which Rs. NIL (Previous Year R.s Nil) has been paid up under protest/ court order and included under the haed “ Advance Recoverable”

iv) Other Rs. 3.270 Millions (Previous Year Rs. 3.480 Millions) (Against which Rs. 0.300 Million (Previous year Rs. 0.300 Million) has been paid under protest/ court orders and included under the head “Advances Recoverable”

The outflow arising from these claims is uncertain and is determined only on receipt of decision of the cases which are pending at the various forums/ authority

b) Bills Discounted but not matured at the year end Rs. Nil (Previous Year Rs. 8.510 Millions)

c) Guarantees given to Banks, Financial Institutions and Government Authorities on behalf of group companies Rs. Nil (Previous Year Rs. 0.100 Million) and on behalf of Subsidiary Company Rs. Nil ( Previous Year Rs. 9.050 Millions)

Fixed Assets:

• Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Vehicle
• Computer
• Intangible Assets
• Goodwill
• Computer Software

AS PER WEBSITE:

Profile:

Established in 1985, Bharti Teletech is a subsidiary of India’s leading integrated telecommunications group, Bharti Enterprises.

The Company is currently engaged into distribution and marketing of wide range of products that include Motorola handsets and accessories, BlackBerry, Thomson, high quality cordless phones, modems, audio / video conferencing products from Polycom, Free To Air Set Top Boxes, Fixed Cellular Phones and Fixed Wireless Terminals. Apart from this, Bharti Teletech is also engaged into manufacture of high quality landline telephones at its manufacturing operations at Goa and Ludhiana under Beetel brand for Airtel, BSNL / MTNL as well as retail market and exports to 30 countries across 5 continents.

Bharti Teletech currently commands a leading share in retail as well as the telecom service provider segments. Buoyed by its experience and success in distribution and marketing as well as the changing sphere of Indian economy, the Company plans to offer a high range of products to the consumers, going forward.

Bharti Teletech has always strived to give best to its customers and has been at the cutting edge of technology. It has a state of the art in-house R adn D unit approved by Govt. Of Science and Ind. Research, Govt. of India. Beetel is the first Indian brand to launch caller ID Phones in India and was again first to introduce latest technologies in its products at an affordable price range. Apart from the high quality standards there is an exciting range of Beetel phones with advance features like phones with FM Radio, large LCD display, Polyphonic ringtones, phonebook , Speaker phone, colour displays, battery back-up etc. It is the only company which offers a 1 year replacement warranty . Bharti Teletech was the first to launch 2.4 GHz digital cordless phones in the country and again the first to bring the price of cordless phones to below Rs. 1000.

As a strategy to leverage its distribution strength, Bharti Teletech has tied up with Motorola for nationwide distribution of their complete range of mobile phones and accessories. Bharti Teletech has also tied up with Polycom for distribution of voice and video conferencing solutions in the country and with Casio for digital camera's .

Bharti Teletech has a dedicated Enterprise base of over 320 Regular Corporate Customers. The company has a pan India footprint. It’s distribution network comprises about 750 Distributors and over 40000 Dealers which cover almost 4000 towns in the country.

Achievements:

The Company always stood first and pioneered the latest technologies in India, Bharti Teletech is the first company to manufacture Push Button Telephones in India, first company to launch and manufacture CLI phones, first company to launch SMS phones and 2.4 GHz phones.

Bharti Teletech has numerous laurels and awards to its credit. The company was awarded the Golden Peacock award For Innovative Management for the year 2004 and the Golden Peacock award For Most Innovative Product in 2002, 2005 and again in 2006. Bharti Teletech has also been elected as the "Top Telephone Manufacturer" by Voice and Data in 2002-03, 2003-04 , 2005-06 and 2006-07. Company's Beetel brand is a winner of the "Consumer World" award for the year 2004. Bharti Teletech is the Winner of the 'Electronics and Computer Software Export Promotion Council' (ESC) award for 'Highest Exports in Telecom Equipment' for last 5 years.

This showcases the high standards and commitment of the organisation in terms of management and products.

VISION:

v Enabling Technology Reach Masses

v ENABLING – 'Beetel' brand and Dist Principles.

v TECHNOLOGY – Communication and IT ( To start with)

v REACH – Distribution Strength ( B2C, B2B Telco)

v MASSES – Serving the large mass of the consumer.

MISSION:

By 2012, Beetel Teletech will be India’s finest distribution services company by:

Building a boundary less distribution scale across India

v Distribution spread to all towns and main villages in the country

v Across relevant target segments in B2B and B2C

v Thru-putting large volumes to achieve scale and cost effectiveness

v Benchmarking with the best to be the preferred partner

Delivering predictability and success for the partners

v Partnering closely with principals and consumers to understand needs, demand levels, media habits and consumption patterns

v Long term partnerships with principals for enabling success in the Indian market

v Understand and influence channel partners

Making Beetel a loved, aspirational symbol of India’s middle class

v Bring Beetel closer to the consumer with more relevant products

v Products which appeal to the masses

v Differentiated products which drive value for the consumers. Every Product we launch will support the brand promise with a simple, focused and compelling message.

Ensuring a performance driven and satisfied ecosystem of the people, partners and consumers

v Individual and team performance within and across functions

v Constantly look at development needs to increase performance levels

v Look after needs of all stakeholders and work ‘with’ all for long term success

v No abnormal profit for any stakeholder

VALUES:

v Respect to the individual

v Be a long term partner

v Deliver on commitment

v Process integrity

v Strive for excellence

R adn D Strengths

v Bringing out new models of telephones with new advanced features like Caller ID, two-way speakerphone, phone book, 2-line phone, backlit display, battery back-up etc.

v Customized design based on specific customer requirements like phone for Bank ATM (with Auto Dial Lock facilities).

v Phones compatible with Private Service Provider's network like BTNL, TATA TELESERVICES, HUGHES, SHYAM , HFCL etc.

v Phones specific to International market requirements meeting different countries specifications.

v Phones designed for BSNL/MTNL as per Indian PTT specifications.

v Fixed Wireless Terminals FWT/FWP, GSM/ GPRS Modem.

v Introduction of CHIP ON BOARD (COB) Technology in India. This Technology is approved by TEC Government Department.

v Value addition in the existing models in terms of quality, features and competitiveness.

v Customized phone based solution for banks, call centres and export

Staff Capabilities

All these supported by following highly qualified professional teams

v Electronics Engineering Team which design circuits as per customer requirements, design PCB using design software, test these circuits by developing prototypes as per specifications and convert these designs into successful products.

v Mechanical Engineering Team which uses high end design software like Pro-E (CAD/CAM/CAE) for development of aesthetics appealing designs, generate all mechanical drawings, plastics related mould improvements and custom parts development. These capabilities provide an edge to company in the competitive market and also provide ability to adapt to the ever-changing market situations.

Facilities:

v In house industrial and engineering design by using Pro-E (CAD/CAM/CAE) design Software.

v In house Embedded software development setup.

v In house PCB design setup using ORCAD and POWER PCB PADS Software.

v Specific test equipments such as PTT specifications simulator (Microtronix test machine).

v Environmental test laboratory for conducting reliability and life tests.

v In house library for technical manuals - PTT specifications of different countries, Internet browsing etc.

v R adn D facilities fully equipped to suit any PTT/Telecom specifications conforming to 'UL', 'FCC', 'ETL' and 'EC' standards.

v R adn D is approved from Government of India Department of Scientific and Industrial Research (DSIR) Delhi. The R adn D centre provides stat of Art designed products to the market.

Marketing Exports Domestic

After years of careful and focused brand-building, Beetel is recognized as a trusted brand in India and is poised to take on global players in the most competitive international markets.

Beetel was the first Indian brand to launch caller ID phones and the first to bring down the price of cordless phone to an affordable range at below Rs 2000. In September 2007 , Beetel launched cordless phones at Rs 995 - again a first.

Beetel has also pioneered SMS phones, the first in India as well as the first to launch along with FM radio. Beetel has also been the first to introduce phone with battery back up, colour displays, polyphonic ring tones and combo phones.

For the consumer in India., Beetel is truly ringing in the future.

Indian PTT has accepted Beetel instruments whole heartedly and the brand has a major share in this market.

The private service providers have shown great faith in Beetel’s products and appreciate the company’s ability to customize the phones to their specifications. Beetel has garnered over 80% of this market.

Beetel has remained the No. 1 brand in the Indian retail market, with a market share of almost 50%. The company’s marketing network encompasses over 750 distributors and over 42000 dealers taking Beetel phones to every corner of one of the biggest and most complex markets in the world

Marketing and Exports International:

Overseas, the company has a richly diversified customer base in over 35 countries across 5 continents with presence in all major segments Telco's, OEM, ODM and Retail. The markets include the South America, Eastern Europe, Middle East, Asia and Africa. Also the Company is a Supplier to leading telecom brands across the world and PTT. The products are accredited by International bodies including CE - Europe, MIC - Korea, SIRIM - Malaysia, NOM - Mexico and ETISLAT – UAE etc.

The company exemplifies a marketing success story that writes new chapters of achievement with each passing year. Bharti Teletech Limited had achieved new milestones Year after Year and the sheer hard work had lead us to awards and accolades as listed below.

Year 2000-01 : Best Exporter for Telecomm Equipments By ESC

Year 2001-02 : Best Exporter for Telecomm Equipments By ESC

Year 2002-03 : Best Exporter for Telecomm Equipments By ESC

Year 2005-06 : Highest Export in Telecom Equipments By ESC

Year 2006-07 : Highest Export in Telecom Equipments By ESC

Year 2006-07 : 'Niryat Shiromani Puraskar' and Gold Medal from ICSME

Year 2007-08 : 'Niryat Shiromani Puraskar' and Gold Medal from ICSME

With an urge to provide world class quality products and services we had been coming up with new products and the range including Basic Phones, Caller ID Phones, Featured Phones ( SMS Phone, GSM Card Reader, Type II Caller ID, Digital Answering Machines and Boss Secretary System), Cordless Phones ( 2.4GHz Digital, DECT and Analog ), ADSL 2+ Modems , FTA Set Top Boxes, VoIP – SIP Phones, Fixed Cellular Phones/ Terminals and more.

Production Process:

The company ensures stringent quality norms are followed at every stage of production.

Reliability:

Tests are conducted first at the component level and later as completely built up unit applying the SQC techniques like FMEA, DoE and DFSS so that each unit of production conforms to specifications as agreed with the customer.

Suppliers: Raw material as received is certified before use. Bharti deploys the system of Quality assurance at suppliers end and continuously interacts and educates the suppliers to ensure that Components are delivered direct on Line.

Calibration: All the instruments are calibrated as per schedules and Production equipments are validated process Capabilities employing the SPC techniques.

Process Audits: Production Team has end-to-end responsibility for compliance to Process Quality plans.

Customer viewpoint representation method: Consumer inspection of final finished Products is conducted according to sampling plan and product specification, which are drawn from requirements of a critical customer. Specially trained persons at the customer premises conduct this inspection. These people are sufficiently authorized and report directly to top management with their findings on out going Quality. The skills of these persons are upgraded from time to time on the basis of feedback received from the market.

On receiving of field failure data from customer care deptt, same is analyzed to take necessary corrective and preventive actions.

Six Sigma : Six Sigma initiatives are started in the factory to improve rolled throughput yield of all the products manufactured by reducing and eliminating wastes in all processes. For achieving this initiative, various defect reduction projects and process optimization projects are recently started.

HR@Bharti Teletech

Bharti Teletech’s multi business context poses a continual challenge to manage, motivate, develop and engage its talent resources for maintaining its leadership position. Over the years Bharti Teletech has fostered Human Resources systems which are people focused, responsive and aim at employee engagement and development.

BTTL's performance and resulting productivity is an indicator of the brand affiliation and satisfaction level of its employees.

The focus of Bharti Teletech’s HR policy is to develop a distributed leadership culture which encourages employees to take ownership thereby building a culture of performance, excellence and innovation.

This focus is sharpened and best laid down in the vision of:

v Attain organizational excellence by developing and inspiring the true potential of BTTL’s human capital and providing opportunities for growth, innovation and enrichment.

Bharti Teletech values all its employees for the contributions they make to the accomplishment of the Organization’s mission.

It believes that all employees can develop work-related competencies to enhance job performance by working as a team.

It is committed to deliver HR programs and services to improve opportunities for employee development, employee performance and workplace environment enhancement. The key value drivers promotes:

v Fostering a climate of creativity, innovation and enthusiasm

v Providing a ethical work environment that is a source of creativity and enjoyment

v Developing and sustain core values

v Providing opportunities for growth and development

v Inculcating a spirit of learning and enjoying challenges

v Providing job contentment through empowerment, accountability and responsibility

v Demonstrating fairness, equality of opportunity and respect to all

Distribution:

Every employee of Bharti Teletech is motivated, guided and encouraged to reach his/her highest level of potential by inbuilt parameters in the system. The system in itself encourages the employees to explore his/her own position of equilibrium in the organization and constantly nurture the competencies for high performance and growth.

Bharti Teletech Limited is emerging as a distribution powerhouse in India . With over 750 distributors, 42000 Dealer strong network and 29 godowns spanning across the Length and Breadth of the Country. Bharti Teletech Limited is today one of the largest distribution companiesinIndia .

The first distribution tie up was for Blackberry. Bharti Teletech announced its tie up with Motorola as their Strategic Channel Partners for Sales and Distribution of their Handsets in November2005.

This tie up was followed by another strategic distribution alliance with Polycom- World leader in the Audio and Video Conferencing Solutions

Lately, Bharti Teletech Limited has tied up with Casio for distribution of digital cameras .Together we hope to bring this exciting new category to every nook and corner of the country which is a big hit amongst today's kids and youth.

Bharti Teletech's innate ability to deal with a diverse ways of products that demand an effective sales and distribution network was proven with the way all products have been accepted in the Indian Market.

The efforts of Bharti Teletech Team supported by a robust web based Supply chain management system which is the backbone of the organization.

It becomes amply clear that all major players who have allied with us have reposed great confidence and faith in Bharti Teletech's ability to drive their businesses to altogether new levels.

It has always been Bharti Teletech's endeavor to leverage its distribution strengths to the maximum and become a catalyst for growth for all its partners.

PRESS RELEASE:

Beetel launches the CB99000 twin cordless phone: India’s first phone designed specifically for the bedroom

New Delhi, August XX, 2008: Beetel, India’s leading telephone brand, today announced the launch of the CB99000 cordless phone with twin handset facility. With features such as digital alarm with snooze, sleep timer for 90 minutes and Real time clock display, the CB99000 is India’s first phone to be designed specifically for the bedroom, which is easily one of the most sought after places where a cordless phone is kept. The twin cordless combo phone is powered by the digital 2.4 GHz technology for enhanced voice clarity and longer hands-free range. The CB99000 is yet another testimony to Beetel’s commitment to offer pioneering and feature rich phones and powering the telephony needs of the customers through innovation and design.

The Beetel CB99000 features an inbuilt FM radio with 10-channel storage, thereby addressing the entertainment needs of the customers and 10 selectable ringer melodies with adjustable volume. The phone features Intercom facility and allows 3 way call conferencing. It also has an Electronic Volume Control for the FM speaker and an additional charger with FM radio facility. The CB99000 also comes equipped with an inbuilt phone book that offers storage of up to 50 phone numbers and has a vibrant blue backlit LCD display. The dual mode DTMF / FSK caller ID system compatible phone contains an incoming calls memory for the last 50 incoming calls. The CB99000 bedroom phone comprises of two-way speakerphone with adjustable volume and a 5-step handset receive volume control. The power-packed phone comes with a 1 year warranty, and is priced at Rs. 3795/-.

With the launch of the CB 99000, Beetel is looking to further fuel the uptake of cordless telephones in the country and continue on its commitment to offer the best-in-class and revolutionary products to its customers.

With zero moisture access in all Beetel telephones, the Company ensures that all instruments work well under any climatic conditions including moist and humid climate experienced in the coastal areas. All phones from Bharti Teletech are backed by Beetel’s one year of warranty against any manufacturing defects.

BHARTI TELETECH AWARDED THE NIRYAT SHIROMANI PURASKAR FOR EXPORTS

Recognized for its initiatives in promoting exports by the Indian Council of Small and Medium Exporters

New Delhi, August XX, 2008: Bharti Teletech, one of India’s leading manufacturers and distributors of telecom & allied products, has been awarded the ‘Niryat Shiromani Puraskar’ Award for Exports by the Indian Council of Small and Medium Exporters (ICSME) for the year 2007-08. The award has been given in recognition of the company’s initiatives in promoting exports from the country. The prestigious award was presented in the presence of eminent dignitaries like Dr. Balram Jakhar, Hon’ble Governor of Madhya Pradesh, Dr. Bhishma Narayan Singh, Ex-Governor of Tamil Nadu & Assam and Mr. G.V.G. Krishnamurthy, Ex-Election Commissioner Govt. of India, in New Delhi.

Bharti Teletech, which exports to 30 countries across 5 continents, has been consistently recognized for its export initiatives having won numerous awards for exports. During the year 2007-08, the company exported over a million telephones to 30 countries across five continents.

The Niryat Shiromani Puraskar for Exports, instituted by ICSME, seeks to recognize companies that bring about a new culture of export efforts and contribute effectively towards the country’s economic growth. This prestigious award is an unequivocal acknowledgement of the export-oriented initiatives of Bharti Teletech.

Commenting on the award, Mr. Sunil Goyal, CEO, Bharti Teletech said, “It is a matter of great pride for us at Bharti Teletech to have been recognized for our export initiatives by the Indian Council of Small and Medium Exporters. As the leading manufacturer of telecom & allied products in the country, it is our constant endeavor to bring India into the global telecom products manufacturing arena by offering world-class quality products at competitive prices. The award is a reaffirmation of Beetel’s manufacturing prowess in the telecom sector, not only in India but also globally.”

Today, Bharti Teletech continues to be the India’s largest selling telephone brand Beetel and has been consistently awarded the "Top Fixed Phones Company Award" by Voice & Data.

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.48.72
UK Pound	1	Rs.82.17
Euro	1	Rs.65.90

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