MIRA INFORM REPORT

Report Date :

26.04.2012

IDENTIFICATION DETAILS

Name :	VIDEOCON TELECOMMUNICATIONS LIMITED (w.e.f. 29.12.2009)
Formerly Known As :	DATACOM SOLUTIONS LIMITED (w.e.f. 12.11.2009) DATACOM SOLUTIONS PRIVATE LIMITED
Registered Office :	171-C, 17^th Floor, Mittal Court, C Wing, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	07.06.2007
Com. Reg. No.:	16-204763
Capital Investment / Paid-up Capital :	Rs.15000.000 Millions
CIN No.: [Company Identification No.]	U72900MH2007PLC204763
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Telecommunication Services
No. of Employees :	Not Divulged by the management

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exist
Comments :	Subject is a subsidiary of Videocon Industries Limited. The company has incurred huge losses during the current year (i.e. 2009-10). Videocon Telecommunications said it plans to continue its telecom operations and will participate in the auction for 2G Spectrum. The company is involved in 2G Scam. The company can be considered for business dealings on a safe and secured trade terms and conditions.

NOTES :

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

INFORMATION DECLINED

Management Non Co-operative

LOCATIONS

Registered Office :	171-C, 17^th Floor, Mittal Court, C Wing, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22886399/ 42555000
Fax No.:	91-22-22886797
E-Mail :	corp.secretarial@videocon.com canagarkar@gmail.com
Circle Head Office :	RMZ Millenia Business Park, Campus 2, 2nd Floor, No 143, Dr. MGR Road, Kandanchavady, Perungudi, Chennai – 600096, Tamilnadu, India

DIRECTORS

As on 30.03.2011

Name :	Mr. Rajkumar Nandlal Dhoot
Designation :	Managing Director
Address :	Dhoot Bunglow, Station Road, Padampura, Aurangabad – 431001, Maharashtra, India
Date of Birth/Age :	11.09.1955
Date of Appointment :	12.12.2007
DIN No. :	00419480
Name :	Mr. Pradipkumar Nandlal Dhoot
Designation :	Director
Address :	Flat No. 99, Videocon House, 1st Floor, Manav Mandir Road, Napeansea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	22.03.1960
Date of Appointment :	12.12.2007
DIN No. :	01635315
Name :	Mr. Subhash Shamsunder Dayama
Designation :	Director
Address :	Flat NO. PL 16B, Vasant Tara Colony, Near Matoshri Jogging Park, Ahmednagar – 414001, Maharashtra, India
Date of Birth/Age :	05.05.1961
Date of Appointment :	10.06.2008
DIN No. :	00217692

KEY EXECUTIVES

Name :	Mr. Chandrashekhar Ashok Nagarkar
Designation :	Company Secretary
Address :	37/5, Omkar Apartment, Renavikar Nagar, Savedi, Ahmednagar – 414003, Maharashtra, India
Date of Birth/Age :	17.03.1976
Date of Appointment :	10.06.2008
Pan No. :	ACMPN7915R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.03.2011

Names of Shareholders	No. of Shares
Videocon Industries Limited, India	155552000
Videocon International Electronics Limited, India	1194447960
Jumbo Techno Services Private Limited, India	150000000
Venugopal Nandlal Dhoot	10*
Pradipkumar Nandlal Dhoot	10*
Rajkumar Nandlal Dhoot	10*
Saurabh Pradipkumar Dhoot	10*
Total	1500000000

* Beneficial ownership with Videocon International Electronics Limited

Equity Share Break up (Percentage of Total Equity)

As on 30.03.2011

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Telecommunication Services

GENERAL INFORMATION

No. of Employees :

Not Divulged by the management

Bankers :

Not Available

Facilities :

Secured Loans	As on 31.12.2010 (Rs. in Millions)	As on 30.09.2009 (Rs. in Millions)
Term Loans from Banks	14654.356	0.000
Short term loans from banks	6316.890	15690.271
Vehicle loans from banks (repayable within one year Rs.15693.134 millions (previous year Rs.9991.789 millions)	2.609	5.096
Total	20973.855	15695.367
Unsecured Loans	As on 31.12.2010 (Rs. in Millions)	As on 30.09.2009 (Rs. in Millions)
From Holding Companies	6328.663	3409.806
From Others	0.000	7.746
Total	6328.663	3417.552

Financial Institution :	SBICAP Trustee Company Limited, 202, Maker Tower ‘E’, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India
Banking Relations :	--
Auditors :
Name :	Khandelwal Jain and Company Chartered Accountants
Address :	221, Hans Bhawan, Bahadur Shah Zafar Marg, New Delhi – 110002, India
PAN.:	AAAFK0985C
Auditors :
Name :	Kadam and Company Chartered Accountants
Address :	Vedant, 8/9, Viraj Estate, Opposite Tarakpur Bus Stand, Ahmednagar – 414003, Maharashtra, India
PAN.:	ABBPK8294J
Holding Company :	Videocon International Electronics Limited (a subsidiary Videocon Industries Limited) CIN No.: U32100MH2003PLC142232
Ultimate Holding Company :	Videocon Industries Limited
Subsidiaries :	Datacom Telecommunications Private Limited CIN No.: U64201PB2008PTC031630
Associates :	Jumbo Techno Services Private Limited Senior Consulting Private Limited

CAPITAL STRUCTURE

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000000	Equity Shares	Rs.10/- each	Rs.40000.000 Millions
4000000000	Preference Shares	Rs.10/- each	Rs.40000.000 Millions
	TOTAL		Rs.80000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000000	Equity Shares	Rs.10/- each	Rs.15000.000 Millions

Note:

Of the above 1194448000 Equity Shares are held by Videocon International Electronic Limited (including 40 shares held by the nominees)- Holding Company and 155552000 Equity Shares held by Videocon Industries Limited – Ultimate Holding Company

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010 (15 months)	30.09.2009 (13 months)	31.08.2008
SHAREHOLDERS FUNDS
1] Share Capital		15000.000	5400.000	1500.000
2] Share Application Money		10000.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(10836.995)	0.000	0.000
NETWORTH		14163.005	5400.000	1500.000
LOAN FUNDS
1] Secured Loans		20973.855	15695.367	9996.982
2] Unsecured Loans		6328.663	3417.552	8300.074
TOTAL BORROWING		27302.518	19112.919	18297.056
DEFERRED TAX LIABILITIES			0.000	0.000
TOTAL		41465.523	24512.919	19797.056
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		42196.446	21089.086	26.549
Capital work-in-progress		0.000	0.000	17036.031
Preoperative Expenditure Pending Allocation		426.517	6382.002	1107.459
INVESTMENT		0.520	0.499	0.499
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	164.338	0.000	0.000
	Sundry Debtors	553.004	0.000	0.000
	Cash & Bank Balances	1109.589	1605.621	854.438
	Other Current Assets	5.102	82.228	44.686
	Loans & Advances	4298.016	304.739	802.239
Total Current Assets		6130.049	1992.588	1701.363
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6001.857	2539.105	54.632
	Other Current Liabilities	1247.329	2403.262	19.176
	Provisions	35.823	8.889	1.037
Total Current Liabilities		7285.009	4951.256	74.845
Net Current Assets		(1157.960)	(2958.668)	1626.518
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		41465.523	24512.919	19797.056

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010 (15 months)	30.09.2009 (13 months)
	SALES
		Service Revenue	1690.528
		Other Income	177.325
		TOTAL (A)	1867.853	NA
Less	EXPENSES
		Access Charges, License Fees and Network Expenses	4689.313
		Personnel Expenditure	934.301
		Sales and Marketing Expenses	3401.545
		Administrative and Other Expenses	374.970
		TOTAL (B)	9400.129
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(7532.276)	NA
Less	FINANCIAL EXPENSES (D)		1211.038
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(8743.314)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1685.191
	PROFIT BEFORE TAX (E-F) (G)		(10428.505)	NA
Less	TAX (H)		0.000	NA
	PROFIT AFTER TAX (G-H) (I)		(10428.505)	NA
Less	Transfer from Pre-Operative Expenditure Pending Allocation		408.490	NA
	BALANCE CARRIED TO THE B/S		(10836.995)	NA
	IMPORTS
		C.I.F. Value of Imports - Capital Goods	2617.780	1656.630
	TOTAL IMPORTS		2617.780	1656.630
	Earnings Per Share (Rs.)		(8.60)	NA

KEY RATIOS

PARTICULARS		31.12.2010 (15 months)	30.09.2009 (13 months)	31.08.2008
PAT / Total Income	(%)	558.31	NA	NA
Net Profit Margin (PBT/Sales)	(%)	616.878	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	21.58	NA	NA
Return on Investment (ROI) (PBT/Networth)		0.74	NA	NA
Debt Equity Ratio (Total Liability/Networth)		2.36	4.46	12.71
Current Ratio (Current Asset/Current Liability)		0.84	0.40	22.73

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.12.2010 (Rs. in millions)	30.09.2009 (Rs. in millions)	31.08.2008 (Rs. in millions)
Sundry Creditors
- Due to Micro, Small and Medium Enterprises	0.000	0.000	0.000
- Due to Others	6001.857	2539.105	54.632
Total	6001.857	2539.105	54.632

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	No
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last one year	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

PERFORMANCE REVIEW AND OPERATIONS

The Company has been awarded license to provide Unified Access Services (Telecom License) in 21 circles in India with effect from 25th January, 2008, which are valid for 20 years. Till the end of accounting year the Company has been allotted spectrum in 20 Circles and the Company has launched its services in 16 circles.

During the period, the Company has earned a total income of Rs.1867.900 Millions and total expenditure amounted to Rs.12296.400 Millions. The Company incurred a loss of Rs.10428.500 Millions. The Directors are hopeful of improved performance in the year to come.

During the year, the paid-up equity share capital of the Company was increased from Rs.5400.000 Millions to 15000.000 Millions.

During the year, the Registered Office of the Company was shifted from Mohali, Punjab to Mumbai, Maharashtra, w,e.f. 10th June, 2010.

Bankers Charges Report as per Registry

Corporate identity number of the company	U72900MH2007PLC204763
Name of the company	VIDEOCON TELECOMMUNICATIONS LIMITED
Address of the registered office or of the principal place of business in India of the company	171-C, 17th Floor, Mittal Court, C Wing, Nariman Point, Mumbai-400021, Maharashtra, India Email : corp.secretarial@videocon.com
This form is for	Creation of charge
Type of charge	Uncalled share capital Immovable property Any interest in immovable property Goodwill Patent, license under a patent Trademark Copyright or license under a copyright Book Debts Movable Property
Particular of charge holder	SBICAP Trustee Company Limited, 202, Maker Tower ‘E’, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India Email : corporate@sbicaptrustee.com
Nature of instrument creating charge	Indenture of Mortgage dated March 30,2011 executed in favour of SBICAP Trustee Company Limited (STCL) acting as Security Trustee for the benefit of lenders in respect of financial assistance aggregating Rs.71500.000 Millions given to the company to secure the lenders.
Date of instrument Creating the charge	30.03.2011
Amount secured by the charge	Rs.71500.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest At SBAR present effective rate, 11.75% p.a. (floating) with annual reset of spread from the date of first disbursement, applicable at monthly rests Terms of Repayment To be repaid in 26 quarterly structured installments commencing at the end of the quarter after the availability period Margin Not Applicable Extent and Operation of the charge The charge shall operate as security for due repayment and discharge by the Company to the Lenders of their Rupee Loan of Rs.71500.000 Millions together with interest, liquidated damages, costs, charges and expenses and all other monies payable by the Company to the Lenders in terms of the Loan Agreement dated 31.05.2010 entered into by the Company with the Lenders
Short particulars of the property or asset(s) charged (including complete address and location of the property)	An office premises admeasuring about 263 sq. ft. built-up area, being office premises no. 207, on the 2nd floor, in the building known as "Adeshwar Arcade" situated at Kurla-Andheri Road Chakala, Andheri (East), Mumbai - 400092 constructed on all those pieces and parcels of land admeasuring 1662.55 sq. mtrs bearing survey no. 54-A, Hissa No. 3, 4 and survey no. 118, Hissa No. 3 Survey No. 54F and now bearing C.T.S. No. 23, 23/1 to 23/15, lying, being and situated at Village Chakala, within the limits of Greater Bombay, in the registration sub-district of Bombay City and Bombay Suburban District. All movable assets including all current assets, machinery, spares etc., stocks of raw materials, consumable stores and spares, book debts, bills etc. both present and future All associated intangible assets including goodwill, intellectual property rights etc. together with all rights, title, interest, benefit, property, claims and demands both present and future All rights, title, interest, benefit, claims and demands of all Project assets, Project Documents, all licenses, permits, approvals, assignments, concessions, consents, clearances and undertakings All bank accounts of the Project including Trust and Retention Account and all sub-accounts and all rights, title, interest, benefit, claims and demands, all investments, uncalled capital etc. All monies and amounts of the Project, both present and future, whether under Project Documents, Insurance proceeds or otherwise

Contingent Liabilities not provided for in respect of:

Particulars	31.12.2010 (Rs. in Millions)
Letters of Guarantees	8593.570
Letters of Credit opened	0.000
Claims against of the company not acknowledged as debts	0.030

FIXED ASSETS:

· Building

· Plant and Machinery

· Leasehold Improvements

· Furniture and Fixtures

· Computers

· Office Equipments

· Vehicles

· Computer Software

· License Fees

PRESS RELEASES

Get 70 mins of FREE Music only on Videocon GSM Mobile Services!

Videocon launches V Music, a unique mobile radio service for anytime, anywhere music

Now dial V for music, anytime, anywhere. Videocon Mobile Services, the nextgen mobile service today introduces V Music, a value added service for unlimited access to music. The pack gives 30 minutes of music only at Rs.30! However, as an introductory offer, 70 additional minutes of music is loaded on to the pack absolutely free! Dial the easy number - 500500 - from your Videocon number for your daily dose of music.

The all new ‘V Music’ is a unique mobile radio service with an extensive library. ‘V Music’ library has an unlimited playlist feature with latest Bollywood, International, Regional and Devotional tracks.

Announcing the launch of the service, Mr. Sunil Tandon, Chief Marketing Officer, Videocon Telecommunications Limited said, “In line with our commitment of providing our customers with what they want and, in the most convenient and affordable format, we introduce V Music. With V Music, we are empowering the customer to choose content, and with 70 free music minutes, that’s even more so! Music lovers dial music at a single number gaining the freedom and convenience of accessing the songs of their preference anytime, anywhere.”

This service is available in two models – pay-per-use which can be availed at Rs.3/min and subscription which can be availed at Rs.30 for 30 minutes with a validity of 30 days. To subscribe, customers can dial 500500. It is available in Mumbai, Haryana, Punjab and Gujarat circles and will be shortly launched in other operational circles as well.

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.52.49
UK Pound	1	Rs.84.66
Euro	1	Rs.69.25

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	CTI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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		14

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.