MIRA INFORM REPORT

Report Date :

18.06.2011

IDENTIFICATION DETAILS

Name :	CENTRE FOR DEVELOPMENT OF TELEMATICS
Head Office :	C-Dot Campus, Electronic City, Phae-I, Hosur Road, Bangalore – 560100, Karnataka
Country :	India
Financials (as on) :	31.03.2009
Year of Establishment :	August, 1984
Capital Fund:	Rs. 3414.544 Millions
Legal Form :	Organisation
Line of Business :	Subject engaged in the design and development of indigenous telecom technology.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is the Telecom Technology Development Centre of the Government of India. Trade relations are reported as fair. Payments are reported to be usually correct and as per commitments. Subject being a government of India Centre can be considered normal for business dealings at usual trade terms an conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Head Office :	C-Dot Campus, Electronic City, Phae-I, Hosur Road, Bangalore – 560100, Karnataka
Website :	www.cdot.co.in
Work Office :	C-DOT, Field Support Centre, CTS Main Building, B Block, 6^th Floor, P-94, Transport Depot Road, Kolkata – 700088, West Bengal, India
Branches :	C-DOT, Mandi Gaon, Mandi Road, Chatarpur, Mehrahull – 110030, New Delhi, India

C-DOT MANAGEMENT

Governing Council:	Chairman Minister of Communications and IT Vice-Chairman Minister of State for Communications and IT Members Scientific Advisor to the Defence Minister Chairman, Telecom Commission Member (In-charge C-DOT), Telecom Commission Member (Finance), Telecom Commission Secretary, Department of Information Technology Chairman and Managing Director, BSNL Executive Director, C-DOT Directors, C-DOT
Steering Committee:	Chairman Chairman, Telecom Commission Vice-Chairman Member (In-charge C-DOT), Telecom Commission Members Chairman and Managing Director, ITI Limited Director (Planning), BSNL Sr. DDG, Telecom Engineering Centre DDG (TPF), Department of Telecommunications Sr. Director, Department of Information Technology Executive Director, C-DOT Directors, C-DOT
Project Board:	Chairman Executive Director, C-DOT Members Directors, C-DOT

BUSINESS DETAILS

Line of Business :

Subject engaged in the design and development of indigenous telecom technology.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· Canara Bank, 12, Aradhana Enclave Sector-13, R.K. Puram, New Delhi-110 066 · Syndicate Bank, Corporate Finance Branch 6, Sarojini House, Bhagwan Dass Road New Delhi-110 001 · Canara Bank, KIADB Building, Bommasandra Industrial Area Complex HosurRoad, Bommasandra Bangalore - 560 099 · Central Bank of India, Sona Towers, 71/1, Millers Road Bangalore-560 052
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Prasad Azad and Company Chartered Accountant
Address:	Surya Kiran Building 19- Kasturba Gandhi Marg New Delhi-110 001, Delhi, India
Associates/Subsidiaries :	NA

CAPITAL STRUCTURE

CORPUS / CAPITAL FUND

PARTICULARS		Rs. In Millions 31.03.2009
Grants from Dept. of Electronics (Presently Dept. of Information Technology) Accumulated Balance Grants from Dept. of Telecommunication Balance at the beginning of the year Add: Contributions towards Corpus / Capital Fund during the year	335.200 12140.153 1090.000	13565.353
Less: Balance of net expenditure transferred from the Income and Expenditure Account		10150.809
Total		3414.544

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2009	31.03.2008	31.03.2007
CORPUS / CAPITAL FUND AND LIABILITIES
1] Corpus / Capital Fund	3414.544	3212.583	3046.631
2] Reserves & Surplus	23.659	23.658	34.659
3] Current Assets, Loans & Advances	434.990	409.326	182.451
TOTAL	3873.193	3645.567	3263.741
ASSETS
FIXED ASSETS [Net Block]	1375.580	1476.952	1536.321
ASSETS IN TRANSIT	0.000	0.000	2.722
CAPITAL ITEM IN STOCK	0.000	0.000	1.217
Capital work-in-progress	3.842	1.027	0.881
INVESTMENT – LONG TERM	520.000	520.000	390.000
CURRENT ASSETS, LOANS & ADVANCES & DEPOSITS	1973.771	1647.588	1332.600
TOTAL	3873.193	3645.567	3263.741

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		TOT, Royalty, FSR and Publications	329.988	199.844	462.977
		Interest Earned	25.815	13.222	6.097
		Other Income	11.075	10.928	14.700
		TOTAL	366.878	223.994	483.774
Less	EXPENSES
		Established Expenses	582.563	471.667	371.969
		Operational Expenses	272.674	108.464	139.418
		Other Administrative Expenses	152.619	128.247	145.528
		Depreciation	201.944	225.829	232.103
		TOTAL	1209.800	934.207	889.018
	EXCESS OF EXPENDITURE OVER INCOME FOR THE YEAR		842.921	710.213	405.244
Add/ Less	ADJUSTMENT PERTAINING TO EARLIER YEARS		4.038	(8.745)	33.333
Add	GRATUITY PROVIDED FOR		41.080	92.579	0.000
	BALANCE BEING EXCESS OF EXPENDITURE OVER INCOME		888.039	794.048	438.577
Add	EXCESS EXPENDITURE OVER INCOME OF EARLIER YEARS		9262.770	8468.722	8030.145
	BALANCE BEING DEFICIT CARRIED TO CORPUS / CAPITAL FUND		10150.809	9262.770	8468.722

LOCAL AGENCY FURTHER INFORMATION

BACKGROUND

Subject (C-DOT) is the Telecom technology Research and Development Centre of the Government of India. C-DOT develops telecom technologies, solutions and applications for the fixed line, mobile, packet – based converged networks and services. The Centre Provides total telecom solutions directly as well as through strategic alliances and partnership to Network operators and service providers.

OVERVIEW

C-DOT, India's premier telecommunications R and D centre, has been a pioneer and a nation builder. Committed to providing a wide range of cost-effective, state-of-the-art indigenously developed total telecom solutions, it has come a long way since its inception 25 years ago.

C-DOT's contribution to the rural telecommunications scene in the country is well known. In the eighties, C-DOT developed rural telecommunication products ideally suited to Indian conditions. Able to work without air conditioning, the C-DOT Rural Automatic Exchanges (RAXs) acquired legendary status for their ruggedness and reliability. More switching products like SBM RAX for semi-urban and MAX-L (and later MAX-XL) for urban use followed. 6RU10, a radio product for rural applications was also developed. All these products were based on contemporary digital technology.

C-DOT technology spread across the length and breadth of the country through its licensed manufacturers who were well supported by a very efficient technology transfer methodology. C-DOT can rightly take the credit for acting as a catalyst for setting up of a large telecom manufacturing industry in the country.

C-DOT technology spawned a wide base of equipment manufacturers and component vendors. The manufacturing infrastructure thus created was geared for high volumes and supplied over 23.6 million lines based

on C-DOT technology to DoT/BSNL.

Beginning the journey with digital switching systems, C-DOT has endeavoured to cover all facets of telecom technology by developing products in optical, satellite and wireless communication space. From circuit switching

technology of yester years, C-DOT has proven its expertise in ATM and Next Generation Networks. C-DOT has also developed software intensive solutions like IN, NMS, Data Clearing House etc. C-DOT is now a serious market contender, especially in the space of NMS for telecom service providers.

The state-of-the-art R and D facilities at C-DOT's Delhi and Bangalore campuses are comparable with the best in the world. Over the years, C-DOT has come to be looked upon as a Centre of Excellence in Telecom. Projects of strategic national importance, such as Central Monitoring Systems for Telecom Security, are expected to be entrusted to C-DOT by the Indian Government.

STRATEGIC AND ENTERPRISE SOLUTIONS

This scheme aims at development of software intensive applications and solutions catering to the requirements of strategic and enterprise segments.

TRANSMISSION NETWORK MANAGEMENT SYSTEM (TXNMS)

The NMS for the management of a vast transmission network comprises various network management functions, namely, fault, configuration, accounting, performance, security (FCAPS) and network provisioning. The TX NMS Proof of Concept has been certified by BSNL following a successful demonstration.

COMMERCIALIZATION OF CLEARING HOUSE APPLICATION

Data Clearing House services on Application Service Provider (ASP) model have been developed for BSNL and MTNL for processing of National Roaming and generation of billing for inter operator settlements.

Field trials for Clearing House, based on the ASP model were completed in Jan 09. Subsequently, features like Inter-operator tariff along with Clearing House web portal were introduced as per BSNL requirement.

The Clearing House service is operational, on commercial basis, for BSNL and MTNL GSM roaming for the following zones:

a. BSNL- North and East Zones with MTNL - Delhi, from1st Feb 09

b. BSNL – North and East Zones with MTNL – Mumbai, from1st March 09.

MOBILE NUMBER PORTABILITY (MNP)

This project has not been pursued as there was not much scope for a commercial offer from C-DOT owing to the terms and conditions of the MNP tender.

C-DOT ATM BASED SYSTEM CUSTOMIZATION FOR MULTIPLE DEFENCE APPLICATIONS

C-DOT's ATM technology development for Navy has already been completed, with successful technology transfer to BEL. Now, under the present deliverable, a tri-partite MoU, between C-DOT, BEL and Indian Navy, has been signed for working together and execution of additional projects for Indian Navy based on C-DOT ATM technology. Onboard technical support for AISDN-17 project (ATM technology based) for three ships of Indian Navy at Mumbai is Implementation the agreements.

COMPUTER BASED VOICE APPLICATIONS AND SOLUTIONS

This deliverable of the scheme included development of Personal Voice Portal, Media Services and Web Portal for the C-DOT soft switch, all of which have been completed and put on trials.

BUSINESS PROMOTION ACTIVITIES

· C-DOT signed an MoU with USOFA for providing technical support for implementation of the rural broadband services project. Another MoU has been signed for providing technical consultancy for planning the second phase of shared infrastructure for cellular mobile services in rural and remote areas.

· A Transfer of Technology Agreement has been signed with M/s. Instrumentation Ltd. for C-DOT HVP (High Voltage Protection) Unit.

· C-DOT's Data Clearing House services for generation of inter-operator GSM Roaming bills went into commercial service, on ASP model, in February '09 to cater to North and East Zones of BSNL and MTNL, Delhi and Mumbai.

· A Project Agreement has been signed with M/s BEL for providing support for AISDN-17 Project for the Indian Navy.

· Purchase orders have been received BSNL for Missed Call Alert Systems for 16 more sites.

· A Purchase Order has been received from BSNL, Chennai Telephones for implementation of Subscriber Management in LNMS.

· Field support for MAX and IN continues to be provided.

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.44.93
UK Pound	1	Rs.72.42
Euro	1	Rs.63.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		46

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.