MIRA INFORM REPORT

Report Date :

26.02.2013

IDENTIFICATION DETAILS

Name :	BHARAT SANCHAR NIGAM LIMITED
Registered Office :	Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi – 110001
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.09.2000
Com. Reg. No.:	55-107739
Capital Investment / Paid-up Capital :	Rs.125000.000 Millions
CIN No.: [Company Identification No.]	U74899DL2000GOI107739
TAN No.: [Tax Deduction & Collection Account No.]	DELB07684F / DELB07358B / DELB04661G / DELB04650C
PAN No.: [Permanent Account No.]	AABCB5576G
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Providing comprehensive range of telegraph and telecom services throughout the country.
No. of Employees :	363000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3200000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is the largest telecom company in the public sector. Profitability of the company is under severe pressure. However, networth appears to be good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as commitments. The company can be considered normal for business dealings at usual 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name has been found enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi – 110001, India
Tel. No.:	91-11-23353395
Fax No.:	91-11-23353389
E-Mail :	csgml@bsnl.com hcpant@bsnl.co.in
Website :	http://www.bsnl.co.in
Corporate Office :	10th Floor, Statesman House, B-148, Barakhamba Road, New Delhi - 110001, India
Tel. No.:	91-11-23357760
Fax No.:	91-11-23737760
E-Mail :	dirtf@bol.net.in adgtfp@sancharnet.in
Website :	http://www.bsnl.co.in
Location :	Owned
Head Office :	5th Floor, Sanchar Bhawan, 20, Ashoka Road, New Delhi - 110001, India
Tel. No.:	91-11-23718698/ 23032980/ 23711209
Fax No.:	91-11-23730392
E-Mail :	dirtf@bol.net.in adgtfp@sancharnet.in
Website :	http://www.bsnl.co.in
Location :	Owned
Branches :	Located at: · Mumbai, Maharashtra, India · Kolkata, West Bengal, India · Jabalpur, Uttar Pradesh, India · Richhai, · Bhilai · Kharagpur

DIRECTORS

AS ON 28.09.2011

Name :

Mr. Ashish Kumar Guha

Designation :

Director

Address :

23, Poorvi Marg First Floor, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

18.11.1956

Date of Appointment :

21.05.2010

DIN No.:

03504609

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Whole-time director	28-03-11	28-03-11	05-12-11	Active	NO
2	U64200MH2000GOI124302	MILLENNIUM TELECOM LIMITED	Nominee director	31-05-11	31-05-11	-	Active	NO
3	L32101DL1986GOI023501	MAHANAGAR TELEPHONE NIGAM LIMITED	Managing director	05-12-11	05-12-11	-	Active	NO

Name :

Mr. Rakesh Kuamr Upadhyay

Designation :

Chairman cum Managing Director

Address :

B-325, Chandgiramblock Asiad, Village, Complex, New Delhi – 110049, India

Date of Birth/Age :

09.06.1954

Date of Appointment :

30.04.2011

DIN No.:

00204311

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74999DL1978GOI008911	TELECOMMUNICATIONS CONSULTANTS INDIA LIMITED	Managing director	30-04-11	01-11-05	01-08-11	Active	NO
2	L32201TN1988PLC015705	TAMIL NADU TELECOMMUNICATION LIMITED	Director	30-09-06	30-09-06	02-09-11	Active	NO
3	U36999DL1989PLC036647	TBL INTERNATIONAL LIMITED	Director	23-12-06	23-12-06	29-09-11	Active	NO
4	U74899DL1995PLC067527	BHARTI HEXACOM LIMITED	Director	14-09-07	12-01-07	01-08-11	Active	NO
5	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Managing director	30-04-11	30-04-11	-	Active	NO

Name :

Mr. Rajesh Wadhwa

Designation :

Whole Time Director

Address :

C-1/65, Bapa Nagar, Dr. Zakir Hussain Marg, New Delhi – 110003, India

Date of Birth/Age :

25.05.1952

Date of Appointment :

01.08.2008

DIN No.:

002299562

Name :

Mr. Rakesh Kumar Agarwal

Designation :

Whole Time Director

Address :

T-33, Atul Grove Road, New Delhi – 110001, Delhi, India

Date of Birth/Age :

10.04.1953

Date of Appointment :

11.04.2008

DIN No.:

02178454

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Whole-time director	11-04-08	11-04-08	Active	NO
2	U64200MH2000GOI124302	MILLENNIUM TELECOM LIMITED	Director	23-09-08	05-09-08	Active	NO

Name :

Mr. Ashish Kumar Guha

Designation :

Director

Address :

23, Poorvi Marg, 1^st Floor, Vasant Vihar, New Delhi-110 057, India

Date of Birth/Age :

18.11.1956

Date of Appointment :

21.05.2010

Din No.:

00004364

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L26942HR1958FLC042301	HEIDELBERG CEMENT INDIA LIMITED.	Managing director	23-08-11	23-08-06	Active	NO
2	U26940MH1996PLC102555	INDORAMA CEMENT LIMITED	Additional director	24-08-06	24-08-06	Amalgamated	NO
3	U26943HR2006FTC036445	HEIDELBERGCEMENT INDIA PRIVATE LIMITED	Director	09-11-06	09-11-06	Amalgamated	NO
4	U26941KL1992FLC006767	COCHIN CEMENTS LIMITED	Director	02-07-07	16-11-06	Active	NO
5	L21010MH1945PLC010337	BALLARPUR INDUSTRIES LIMITED	Director	02-12-08	29-07-08	Active	NO
6	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Director	21-05-10	21-05-10	Active	NO

Name :

Mr. Rai Narayan Awadh

Designation :

Whole Time Director

Address :

H.N. 34B, Dr. Rajender Prasad Road, New Delhi – 110001, India

Date of Birth/Age :

01.08.1955

Date of Appointment :

19.09.2011

Name :

Mr. Rao Ramachandra Suryadevara

Designation :

Director

Address :

D-1/170, Satya, Arg, Chanakyapuri, New Delhi – 110021, India

Date of Birth/Age :

09.01.1954

Date of Appointment :

13.04.2011

Din No.:

00801168

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U75140GJ1999SGC036051	GUJARAT URBAN DEVELOPMENT COMPANY LIMITED	Nominee director	13-09-06	13-09-06	06-03-09	Active	NO
2	U65929GJ2007PLC051160	GUJARAT INTERNATIONAL FINANCE TEC-CITY COMPANY LIMITED	Director	21-06-07	21-06-07	30-12-08	Active	NO
3	U65993GJ2008PLC053818	GIFT COLLECTIVE INVESTMENT MANAGEMENT COMPANY LIMITED	Director	17-05-08	17-05-08	11-01-09	Active	NO
	U74899DL1995NPL072045	NATIONAL INFORMATICS CENTRE SERVICES INCORPORATED	Director	26-03-09	26-03-09	03-02-11	Active	NO
5	U72900MH2001NPL133410	MEDIA LAB ASIA	Director	22-12-09	05-05-09	27-11-10	Active	NO
6	U85320AP2002NPL039032	NATIONAL INSTITUTE FOR SMART GOVERNMENT	Director	23-06-10	23-06-10	03-01-11	Active	NO
7	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Nominee director	13-04-11	13-04-11	-	Active	NO

Name :

Mr. Maruti Prasad Tangirala

Designation :

Director

Address :

D-11/20, Road No. 01, Andrews Ganj, New Delhi – 110049, India

Date of Birth/Age :

25.07.1965

Date of Appointment :

01.08.2011

Din No.:

03609968

KEY EXECUTIVES

Name :	Mr. Hem Chandra Pant
Designation :	Company Secretary
Date of Birth/Age :	05.01.1961
Date of Appointment :	28.11.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2011

Names of Shareholders (Equity Shares)	No. of Shares
President of India	4999998400
Mishra C. S.	1000
n k Joshi	100
Sanjeev Gupta	100
Ahmad Shakeel	100
R N Jha	100
Mathur K. Shikha	100
S. S. singh	100
Total	5000000000

Names of Shareholders (Preference Shares)	No. of Shares
President of India	7500000000
Total	7500000000

AS ON 28.09.2011

Equity Share Breakup	Percentage of Holding
Category
Government (Central and State)	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Providing comprehensive range of telegraph and telecom services throughout the country.
Products/ Services :	v Telecom Services v Telex, Telegraph, Circuits, Value Added Services v Sale of Directories, Forms and Waste Paper

GENERAL INFORMATION

No. of Employees :

363000 (Approximately)

Bankers :

v State Bank of India

v Punjab National Bank

v Corporation Bank

v ICICI Bank

v Indian Bank

Facilities :

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Other debts unsecured	17031.800	15145.000
Interest accrued due other debt unsecured	1425.600	192.000
Total	18457.400	15337.000
NOTES : Represents loan from Government of India. Out of this, Loan of Rs. 9831.800 millions is a 15 year Loan and Loan of Rs. 7200.000 millions (is non-refundable and non interest bearing

Banking Relations :	--
Auditors :
Name :	Sharma Goel and Company Chartered Accountants
Address :	Y-59, Hauz, Khas, New Delhi- 110016, India

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000000	Equity Shares	Rs.10/- each	Rs.100000.000 Millions
7500000000	Preference Shares	Rs.10/- each	Rs.75000.000 Millions
	Total		Rs.175000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000000	Equity Shares	Rs.10/- each	Rs.50000.000 Millions
7500000000	9% Non-Cumulative Preferences Shares	Rs.10/- each	Rs.75000.000 Millions
	Total		Rs.125000.000 Millions

NOTE:

Out of the above equity shares 4999998400 Equity Shares of Rs.10/- each and 7500000000 preference shares of Rs.10/- each were allotted as fully paid up for consideration other than cash

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		125000.000	125000.000	125000.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		675687.500	739756.600	761335.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		800687.500	864756.600	886335.800
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		18457.400	15337.000	34138.400
TOTAL BORROWING		18457.400	15337.000	34138.400
DEFERRED TAX LIABILITIES		0.000	1238.400	6448.400
TOTAL		819144.900	881332.000	926922.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		716937.600	738803.200	543208.800
Capital work-in-progress		51945.200	59652.300	49286.400
Decommissioned Assets + Intra/ Inter Circle Remittances		0.000	14683.000	11599.300
Other Assets		15274.900	0.000	604094.5
INVESTMENT		55014.100	2000.000	2000.000
DEFERREX TAX ASSETS		921.500	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	39482.400	50583.300	45725.800
	Sundry Debtors	44318.100	47445.700	47205.400
	Cash & Bank Balances	25000.800	303434.000	381343.000
	Other Current Assets	19021.400	8552.100	8723.900
	Loans & Advances	208405.700	139702.800	94488.000
Total Current Assets		336228.400	549717.900	577486.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	97805.800	98946.600
	Other Current Liabilities	118360.600	328817.600	207270.200
	Provisions	141010.400	55760.200	49387.800
Total Current Liabilities		357176.800	483524.400	256658.000
Net Current Assets		(20948.400)	66193.500	320828.100
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		819144.900	881332.000	926922.600

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	270447.100	279134.400	302685.700
		Other Income	26429.100	41569.700	55433.500
		TOTAL (A)	296876.200	320704.100	358119.200
Less	EXPENSES
		Manufacturing Service Costs	19717.200	8755.500
		Employee Related Expenses	137901.000	134541.500	255736.300
		Administrative Selling and Other Expenses	101213.400	102220.800
		Prior Period Items Before Tax	2647.900	1648.500
		TOTAL (B)	261479.500	247166.300	255736.300
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		35396.700	73537.800	102382.900
Less	FINANCIAL EXPENSES (D)		3930.500	3544.700	4432.500
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		31466.200	69993.100	97950.400
Less/ Add	DEPRECIATION/ AMORTISATION (F)		97254.300	91967.900	85234.100
	PROFIT BEFORE TAX (E-F) (G)		(65788.100)	(21974.800)	12716.300
Less	TAX (H)		1945.500	(3748.300)	6967.800
	PROFIT AFTER TAX (G-H) (I)		(63842.600)	(18226.500)	5748.500
	EARNINGS IN FOREIGN CURRENCY		282.700	2007.100	1716.600
	IMPORTS		3195.600	8177.600	8635.000
	Earnings Per Share (Rs.)		(12.77)	(3.65)	1.15

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(21.50)	(5.69)	3.55
Net Profit Margin (PBT/Sales)	(%)	(24.32)	(8.87)	4.20
Return on Total Assets (PBT/Total Assets}	(%)	(6.24)	(1.71)	1.13
Return on Investment (ROI) (PBT/Networth)		(0.08)	(2.54)	0.01
Debt Equity Ratio (Total Liability/Networth)		0.46	0.58	0.33
Current Ratio (Current Asset/Current Liability)		0.94	1.14	2.30

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
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 three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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 involved in	-----
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FINANCIAL PERFORMANCE:

During the year 2010-11, the Company incurred a loss of Rs.63840.000 millions, which is mostly attributed to high man-power cost, declining land line revenue due to fixed to mobile substitution, intense price-war and cut-throat competition with entry of new operators, reduction in IUC rates by the sector regulator, frequent damage of UG Copper and OFC during road widening works, resulting disruption of services forcing shift in consumer preferences etc. To arrest and reverse the negative trend, the Directors have initiated two fold strategy (a) New initiatives for increasing revenues and (b) Optimization of CAPEX and OPEX through convergence. While continuing the focus on fortification of stable revenue streams such as Broadband, Enterprise business, Government projects and Voice services, by giving specific emphasis on quality of service and customer care and sales and marketing.

PHYSICAL PERFORMANCE

During the Financial Year 2010-11, the Company achieved 22.97 Million net GSM connections against the MoU Target [Very Good] of 20 Million.

In order to extend further coverage of GSM Mobile Services and to meet the demands upto the financial year 2011-12, the Company has planed to procure 15 Million GSM Lines.

To push the market and sale of Mobile products, host of new tariff plans were launched. To acknowledge the valuable services rendered by the

Central Paramilitary services, special 2G postpaid plan was launched for them. Various promotional offers introduced during festive occasions. Bundling for iPad with M/s Apple was launched.

JOINT-VENTURE WITH MILLENNIUM TELECOM LIMITED

Millennium cable project is a joint venture of MTNL and BSNL with 50% share each. The cable system is from Indian East Coast (Digha in West Bengal) to Sourh East Asia and from Indian West Coast (Ratia in Gujarat) to Middle East. The viability of the project was reviewed in view of significant reduction in bandwidth prices obtained by BSNL. MTL Board has decided to cancel the tender.

Europe India Gate-way(EIG) submarine cable system

BSNL is a Member of EIG cable consortium having 18 Members. This cable system is from Mumbai to London. BBSNL has invested USD 50

Million in EIG cable system and has ownership of 7.09% in EIG cable system.

Bay of Bengal Gateway(BBG) submarine cable system

A Memorandum of Understanding has been signed by BSNL with BBG cable consortium for participation BBG submarine cable system. BBG cable system is fro Mumbai-Chenai-Penang (Malaysia)-Singapore. BSNL board has yet to take a decision on the investment in BBG Consortium.

Indo-Bangladesh Cable

Optical Fibre cable has been laid between Gede(India) and Darshaha (Bangladesh) by BSNL and BTCL, Bangladesh.

International Telecommunication Service Agreements

BSNL has signed bilateral carrier relation agreement with about twenty-nine international carriers. Additional voice interconnect agreements are being signed with other foreign carriers.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

With 845 million subscribers and a teledensity of over 70 percent, the Indian telecom sector is poised to place itself as a significant contributory in the GDP of the country over coming years.

The market is very competitive with large number of players. Gradual shifting of voice into a commodity with massive price erosion, future revenue growth is dependent on data services. The hefty price paid for the 3G and BWA spectrum coupled with the price war has necessitated the operators to look for sustainable business models. Further, the MNP regime has given rise to “focus on quality of service” by the operators.

Considering the huge investments made for 3G and BWA Spectrum by the operators, and the MNP mechanism in play, the finances of the operators will be under further pressure. With MNP as “prime catalyst factor” for offering “quality of service” by the operators; market may witness more consolidation in the form of Mergers and Acquisitions with focus on stability.

With the onset of 3G and Broadband wireless era, the shift in increase of data based services is expected in the near future.

OUTLOOK

Despite heavy penetration of telecom services, vast population at rural and semi-urban area remain to be covered. This gives a promising outlook to the industry. But the success will depend more on pricing and the variety of services with right technology mix.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year 2010-11, the Company incurred a loss of Rs. 63842.600 millions. While the Income from Services was Rs. 270447.100 millions. Other Income was Rs. 26429.100 millions.

While there was a reduction of 3.11% in Income from Services in comparison to previous year, the Other Income reduced by 36.04%. There was a reduction of 7.36% in the Total Income in comparison with the previous year.

While the Employee Remuneration went up by 2.50 % in comparison to previous year, Office and Administration Expenses showed a descending trend with reduction of 7.39%.

License and Spectrum Fee registered a reduction of 5.49% in comparison with the previous year

MR. R.K.UPADHYAY,

Chairman and Managing Director and Director (Finance) and *Director (Enterprise) [*UPTO 18.9.2011]:-

Mr. Rakesh Kumar Upadhyay, joined subject as Chairman and Managing Director on 30^th April 2011. Mr. Upadhyay is a B. Tech in Electronics

Engineering from IT, Banaras Hindu University (BHU). He is also a graduate of Defence Services Staff College , Wellington and was awarded

M.Sc. (DS) degree by Madras University. He has done MBA in Marketing Management from Indira Gandhi Open University. His career began in Department of Telecommunications in 1975 after his selection by UPSC for Indian Telecom Service. In DoT, he gained experience in areas of Planning, Installation and Commissioning, Commercial Administration and Operations. In October 1996, he proceeded on Deputation to TCIL, where he remained till August 1999. During his deputation, he successfully worked as Project Director in the Foreign Projects at Sana and as General Manager in Yemen. On return from TCIL, he worked in BSNL as General Manager in J and K Circle from January 2000 to June 2003. He was again selected for Deputation in TCIL in June 2003 where he was entrusted the job of Chief Project Director, Algeria, Group General Manager (New Technology) and Executive Director (Project Monitoring) and other important assignments. He took over the charge of Director (Projects), TCIL on 01.11.2005 and was subsequently selected as Chairman and Managing Director of TCIL.

Prior to assumption of the charge of CMD BSNL, he remained at the helms of TCIL from 1^st March 2007 to 29^th April 2011. During his tenure in TCIL he gained rich experience in the fields of Planning, Project Management, Operations and Business Development. In TCIL, he guided the successful implementation of many complex projects. Some of the notable projects are: Pan African e-Network Project – Providing Tele-Education and Tele-Medicine Services to 34 African Nations from seven Universities and 12 Super Specialty Hospitals of India; National Internet Backbone Project; SAARC e-Network Project; Optical Ground Wire Project over 3000 Kilometer Electrical Transmission Lines in live line conditions in Algeria. He has to his credit the turning around of TCIL as its CMD.

Government of India, Ministry of Communications and IT, Department of Telecommunications entrusted the Additional Charge of CMD TCIL to

Mr. R. K. Upadhyay CMD BSNL for a period of three months wef 30.4.2011. He relinquished the Additional Charge of CMD TCIL wef 1.8.2011[F/N].

MR. S. C. MISRA,

Member (Services) Telecom Commission Department of Telecommunications and CMD BSNL/ Director (Finance) [W.E.F 1.3.2011 TO 30.4.2011] :-

Government of India, Ministry of Communications and IT, Department of Telecommunications, entrusted the additional charge of the post of Chairman and Managing Director BSNL to Mr. S. C Misra, Member (Services), Department of Telecommunications, with effect from 01.03.2011.

Mr. Misra was holding the charge of office of CMD BSNL w.e.f. 01.03.2011 to 30^th April 2011. As Member (Services), Telecom Commission – the Apex Body for formulation and implementation of telecom policy in the country – Mr. Misra is responsible for policy issues brought before the Telecom Commission, cadre management related issues of Indian Telecommunication Service (ITS) Group A and Gr. B technical cadres, Vigilance Administration and public grievance redressal machinery of Department of Telecommunications and the administrative aspects linked with PSUs like TCIL, ITI etc. He has more than 34 years of varied and rich experience in Installation, Operation, Maintenance and Administration of telecom systems of traditional as well as New Technologies. Born on 10^th July 1954, Mr. Misra belongs to the Indian Telecommunication Service (1975 batch) and holds M Tech Degree in Electronics Engineering.

MR. GOPAL DAS

Director (HR) and CMD [UPTO 28.2.2011] :-

Mr. Gopal Das took over as Director (HRD) in subject on 4th October 2007. Consequent upon the retirement of Mr. Kuldeep Goyal CMD on his superannuation, Govt. of India have entrusted the charge of CMD to Mr. Gopal Das wef 1.8.2010. The charge of Director (Finance) also vest with him. He is responsible for formulating and implementing policies pertaining to Establishment, personnel, industrial relations, training, restructuring and other HR related affairs. He obtained his B.E. Degree with honors from Banaras Hindu University in the year 1972. He joined Department of Telecommunications, Government of India through Indian Telecommunications Services Group 'A' Service in June 1975.Prior to his present assignment Mr. Das was Chief General Manager, (Wireless Services) in Mahanagar Telephone Nigam Limited at Mumbai. He has vast experience of 32 years in Telecom Industry in the Department of Telecommunications and Mahanagar

Telephone Nigam Limited in different capacities. He has received training in Operation and Maintenance of Electronic Exchanges in France and he was also one of the members of the Special Study Group of ITU for Mobile Network relating to IMT 2000 and beyond. Mr. Gopal Das was deputed in Kingdom of Saudi Arabia as Project Director for handling the various Telecom projects in the city of Dammam during the period from 1987 to 1992. He has also worked on Deputation in Nigeria for about 3 years as Project Director and handled many Optical Fibre and transmission projects. Mr. Das has visited different countries like USA, UK, France, Australia, Singapore, Korea etc. to get exposure of management of telecom systems at international level. During his tenure in Department of Telecommunications and Mahanagar Telephone Nigam Limited, he worked in various capacities as Area Director, General Manager and Chief General Manager and possesses wide experience in Operations, maintenance and development of telecom network including functions related to personnel, commercial, marketing and project implementations. Right from inception of GSM network in MTNL Mumbai, as General Manager, he was actively involved in planning, installation and operation of GSM network and while working as Chief General Manager (Wireless Services), he was responsible for planning installation, operation and maintenance of GSM and CDMA networks a contributed to the rapid growth of Wireless network in MTNL, Mumbai.

MR. KULDEEP GOYAL

CMD and Director (Finance) [ UPTO 31.07.2010 ]:-

Mr. Kuldeep Goyal took over as Chairman and Managing Director of subject on August 1, 2007. Mr. Kuldeep Goyal joined the Indian Telecommunication Service of Govt. of India in 1972. He is an Engineering Graduate from IIT Roorkee. Just prior to taking over as CMD, BSNL, Mr. Goyal has worked as Director (Planning and New Services) and was responsible for planning and execution of strategy for expansion of BSNL's network. With more than 35 years of service, Mr. Goyal has vast experience in telecom sector viz. planning, installation, operation and maintenance of wirelines and wireless services, data services, computerization of various activities in telecom network and provision of value added services. While working as chief General Manager, Maharashtra Telecom circle, he was in charge for operations, planning and expansion of telecom network of the largest circle of BSNL and contributed to rapid growth of telecom networks in Maharashtra and Goa. During his short tenure of ten months as Executive Director, MTNL Mumbai, he was able to double the connections in GSM network of MTNL Mumbai and MTNL's market share was enhanced from 8.93% to 15.5%. During his tenure, broadband service was also started in January 2005 and 40000 subscribers were enrolled during a short period of nine months. Mr. Goyal has worked in Yemen on a foreign project through Telecommunications Consultants India Ltd. He was also a Member of National Working Group of ITU-T Study Group 2 on operational aspect of service, provision and performance of telecom networks and participated in meeting of ITU-T Study Group 2 at Geneva. Mr. Goyal has delivered a number of talks on various topics relating to telecom in various forums like GSM Association, Institute of Engineers, Institute of Electrical and

Telecommunications Engineers, CII, Door Darshan and A.I.R. Some of his articles - "Telecommunication Industry at a Glance", "Universal access - An international perspective" and "Trade in Telecommunications" have been published in Telecommunications Journal.

MR. RAJESH WADHWA

Director (CFA):-

Mr. Rajesh Wadhwa took over as Director (Operations) in subject on 1st August 2008. Mr. Wadhwa is a B. Tech in Electrical Engineering in first class with distinction from I.I.T. Delhi. He has also done MBA from Faculty of Management Studies, University of Delhi. He joined the Department of Telecommunications, Government of India through Indian Telecommunications Services Group ‘A’ in December 1975. Since then he has worked in various capacities in different units of DoT/ BSNL/MTNL and has versatile experience covering almost all the fields in telecommunications including operations, development and management of landline and mobile networks, sales and marketing and financial management etc. Before joining as Director (Operations) on the BSNL Board, he was working as Chief General Manager (North) in Mahanagar Telephone Nigam Limited, Delhi and had also worked as Executive Director, MTNL, Delhi for sometime. In MTNL, he had been mainly responsible for provision, operations and maintenance of landlines and broadband services, mobile services, management of transmission and leased line network, optical fibre network, marketing and distribution channels and revenue management. He was actively involved in extensive induction of IT enabled computerized Operational and Customer Interface Systems and for introducing the concept of paperless working in many areas.

As Director (CFA), BSNL, he is mainly responsible for improving the Systems and Methods to achieve optimal performance and maximum mutilization of BSNL's extensive country-wide Infrastructure and network. He is also responsible for achieving short-term and long-term business interests of the Company by way of high customer satisfaction and timely provision of satisfactory and quality services through close coordination with various field units. He is also responsible for induction and adaptation of new technologies and managing technological changes and providing state-of-the-art modern and world class integrated telecom services in the highly competitive environment.

MR. R.K.AGARWAL

Director (CM) and *(Enerprise) [*WEF 1.8.2010 TO 31.5.2011]:-

Mr. Rakesh Kumar Agarwal has done his B.E. from Indian Institute of Science, Bangalore in 1973 and then M. Tech in Communications from IIT Delhi in 1975. Thereafter he joined Department of Telecommunications and worked in various fields of telecommunications. He did installation of C-400 Cross Bar Exchanges till 1983. He was sent to France for training for the installation of Digital Electronic Exchange of E-10B make in 1983 and thereafter worked as Deputy General Manager (Installation) for E-10B Exchanges in MTNL, Mumbai from 1983 till 1991. He was DoT representative for the System Selection Committee set up to finalise gateway switches for VSNL. During 1990 he represented India for APT Conference in Indonesia. He was also deputed as Project Director, TCIL to Sultanate-of-Oman from 1991 to 1996 where he handled all the projects related to setting up the external plant network for copper cable and Optical Fibre Network in Sultanate-of-Oman. From 1996-98 he worked as Chief General Manager, Andaman and Nicobar Telecom Circle and thereafter handled the charge of Jaipur Telecom District, Rajasthan from 1998-99. He was posted as General Manager (Development) in Pune in 1999 and was in charge of complete planning and installation of all switching and transmission network in Pune District. He was also in-charge of computerization as well as introduction of new services in the network in Pune. He was closely involved with planning, evaluation of tender as well as implementation and maintenance of GSM Mobile Services in Maharashtra since 2002. As Chairman of the Validation Committee he successfully carried out the validation of mobile switch for West Zone installed at Pune. He was in-charge of all the Central Platforms for GSM Mobile Services for West Zone installed at Pune namely pre-paid platform, billing system and value added services for mobile. Later on he finalized expansion of mobile network in West Zone for 4 million lines and was involved in the commissioning and maintenance of GSM Mobile Network. He was also closely involved with the setting up of Call Centre at Pune for handling Customer Care and Marketing of Mobile Services till May, 2006.In June, 2006, he was posted as Chief General Manager, BSNL Bihar Telecom Circle. He has taken over the charge of Director (Planning and New Services) in BSNL Board w.e.f. 11^th April, 2008.

MR. RAJENDRASINGH

Director (Enterprise) [UPTO 31.5.2010]:-

Mr. Rajendra Singh joined subject Board as Director (Commercial and Marketing) on 7^th November, 2007. After the restructuring in BSNL in May, 2009, his designation has been changed as Director (Enterprise), along with the change of responsibilities. Mr. Rajendra Singh belongs to 1972 batch of Indian Telecom Service. He obtained his Bachelor's Degree in Electrical Engineering in 1972 from Punjab Engineering College Chandigarh and joined the Department of Telecommunications in March 1974. Before joining the BSNL Board, during his more than three decades of service, he successfully held various important and prestigious positions in the Department of Telecommunications, MTNL and BSNL. During his tenure as the Chief General Manager of Himachal Pradesh and Punjab Telecom Circles, these Circles recorded significant growth, both in terms of quality and quantity. While working at different positions, he acquired vast experience and knowledge in various streams of telecommunications. He worked on various key projects in Saudi Arabia and Malawi (Africa) during his deputation to TCIL and has a track record of completing the TCIL projects before time, which resulted in higher profit margins for TCIL. During his illustrious career, he has undergone several trainings in India, Japan and U.K. He also participated in a Study Group meeting at ITU HQ Geneva, Switzerland in 2002. As Director (Enterprise), BSNL Board, he is responsible for formulating and implementing policies for sustainable growth of the Enterprise and Wholesale businesses and managing the core network. Enterprise customers include small, medium and large Corporate, Central / State Government Departments and PSUs. The wholesale business covers Indian and International carriers and ISPs. All deals pertaining to the international long distance and national long distance network fall within this jurisdiction. His core network responsibilities include Procurement, Installation, Commissioning and Operation and Maintenance of all transmission equipment as well as Planning, Installation, Maintenance and Management of all MPLS core network. As head of these businesses, he is responsible for the creation of innovative and affordable products, superior sales, marketing and customer service and excellence in network operations.

MR. A.N.RAI,

Director [Enterprise]:-

Mr. A. N. Rai assumed the charge of office of Director (Enterprise) on 19.9.2011. Mr. Rai, officer of Indian Telecommunications Service 1977 batch holds B. Tech Degree in electronics and communications Engineering from BHU Varanasi. Mr. Rai, was actively associated with Installation, Commission and Maintenance of Switching equipments at various places in the country. He was also trained in Digital Telephone systems in various countries like UK, Germany and USA. As senior telecom management professional, he was involved with Development, Operation and Maintenance of Telecom Services at various places like Allahabad, Kanpur etc. As Deputy Director General at the Corporate Office, he handled Rural Networking and CMTS areas. Prior to the joining as Director (Enterprise), he was the Chief General Manager of Orissa Circle of the BSNL, which bagged the prestigious “Telecom Circle of the Year 2010-11 Award”.

MR. S.R.RAO,

Government Director [WEF 13.4.2011]:-

Mr. S.R. Rao, an Indian Administrative Service Officer of the 1978 batch, was appointed as Government Director on the Board of Directors of subject with effect from 13^th April, 2011. Mr. Rao is a Post-Graduate in Applied Sociology from Andhra University and in Rural Development from University of East Anglia (UK).

Mr. Rao has worked extensively at policy and strategic level in the fields of Rural Development, Industry, Urban Development, Urban Housing, Ports Management, Primary Health Service Delivery, Medical Services, Medical Education, Nuclear Energy and Information Technology. At present, he is serving as Additional Secretary in the Department of Telecommunications, Ministry of Communications and IT. Shri Rao is recipient of National Science Foundation Award in Public Health, All Indian Management Association Award for Excellence in Public Service, UN HABITAT Award for Best Practices and is an EISENHOWER Fellow. He was conferred “Padmashri” by the Government of India.

MR. MARUTHI P. TANGIRALA

Government Nominee Directors [WEF 01.08.2011]:-

Mr. Tangirala is Deputy Director General [Licensing Finance-I] Department of Telecommunications, New Delhi, since 13.4.2010. He belongs to the 1990 batch of IP and T AFS. He has worked in various capacities in the Department of Telecom in Finance and Accounts and Vigilance, in the Training Academy of BSNL, as well as on deputation to the Telecom Regulatory Authority of India and the Union Public Service Commission. He attended Anna University for a BE in Civil Engineering and IIM Calcutta for Masters in Management before joining the Civil Services after a brief stint in the private sector. He also holds a Law Degree from Osmania University and an M. Phil in Public Administration from Panjab University. He was appointed as Government Director on the BSNL Board on August 1, 2011.

MR. R.N.JHA

Govt. Nominee director [UPTO 13.4.2011]:-

Mr. Rabindra Nath Jha was appointed as Government Nominee Director on the Board of Directors of subject with effect from 12.2.2010. Presently Mr. Jha is Deputy Director General (International Relations), Department of Telecommunication, Ministry of Communications and IT, Government of India. He is a councilor from India in the International Telecommunication Union (ITU) Council. He was elected as the Vice-Chairman of 2009 Session of ITU Council. He is also on the board of Directors of TCIL (Telecom Consultants India Limited). He did B-Tech in

Radio Physics and Electronics from the University of Calcutta. He had been a recipient of Centre of Advanced Studies National Scholarship as well as National Scholarship. Before joining Department of Telecom as an ITS officer, he worked as Senior Scientific Assistant, National Test House, Kolkata under the Ministry of Commerce and Industry and as a Scientist B in Explosives Research and Development Laboratory, DRDO, Ministry of Defence, Pune. He worked as Divisional Engineer (Internal) in Ahmedabad Telecom District and maintained internal as well as external plant of Telecom Network of Navrangpura Telephone Exchange. As Divisional Engineer (Rural) and Divisional Engineer (Planning) in Patna Telecom District, he had been responsible for planning Telecom network and dimensioning the exchanges.

As Deputy General Manager, MTNL Delhi, he had been maintaining the external plant network of Central and Jorbagh areas two very important localities of Delhi. He was also posted as Director (Engineering and Network Planning) in TEC and had been instrumental in formulating National Plan for ‘Switching’ and ‘Routing’. Also, forecasted the TAX capacity both of level I and Level II of all the Secondary Switching Area including MTNL Bombay and Delhi. Further, he worked as Director (OSP), DOT and had been instrumental in formulating guidelines for the registration of Call Centers under OSP categories. He organized India National Pavilion in ITU Telecom Asia, Hong Kong in the year 2002, ITU Telecom World in Geneva in 2003 and Supercomm in Atlanta in the year 2003. As the General Manager (Corporate Sales and Business Development) in MTNL Delhi he had been promoting MTNL’s services to the commercially important customers in the highly competitive market. As the nodal officer of MTNL he had been coordinating with the Embassies, PMO, MEA, Ministry of Finance, NDMC, MCD, Government of Delhi etc. He had been instrumental in formulating various tariff plans to beat the competitions. Mr. Jha, as Deputy Director General (International Relations) in the Ministry of Communications & IT is the nodal point for coordinating with the International Organizations like ITU, APT, CTO, SAARC and bilateral issues with the other individual countries. As an expert, he represented the country in APT Forum in the Seminar on ‘Introduction and Implementation of IMT- 2000’. Availed ITU, APT fellowships and participated in the Telecom Development Symposium during ITU World 2003 event in Geneva. During the course of work, he visited countries like Thailand, USA, Hong Kong, Switzerland, Turkey, Spain, Singapore, China, Tunisia, Malaysia, Portugal, South Africa, etc. He took very active part in the ITU Plenipotentiary Conference -06 held in Antalya, Turkey in 2006 and canvassed for getting India elected as Council Member of ITU and also for election of Indian nominee as one of the members of Radio Regulation

Board of ITU. Mr. Jha attended World Radio Conference (WRC-07), World Telecom Standardization Assembly (WTSA-08), World Telecom Policy Forum 2008 and a number of ITU Council meetings and world telecom events. Elected as Vice-Chairman of RPM for WTDC-09 and also chaired the Management and Budget Group of ITU Council in 2010. Mr. Jha was instrumental in signing of an agreement between Ministry of Communications & IT, Government of India and ITU for effective co-operation between the Telecom Centre of Excellence of India and ITU. He had been a member of High level delegation led by Mr. G. K. Pillai, Secretary (Commerce) to Democratic Republic of Congo in June, 2008. This delegation was the special emissary of Hon’ble Prime Minister of India to Democratic Republic of Congo.

Dr. S. K. Kak,

Director [Upto 19.2.2011]:-

Dr. Kak, is an M. Tech in Electronics Engineering [Microwave Engineering] and Ph. D in Electronics Engineering [Digital Communications] is Vice-Chancellor of Chaudhary Charan Singh (CCS) University, Meerut, Uttar Pradesh. He entered upon the office of Director of the Company wef 20.2.2008. His areas of interest include Communication systems /Design, digital and Data communication, Computer Networking, Optical communication and Signal Processing. Has more than 34 years of Research Experience in the fields of Communication Engineering, Communications systems, Optical and Fire Optic communication, Data Networks, Signal processing and AI Engineering and Expert Systems. He was instrumental in designing and installation of Campus wide Telephone Network and Computer network in BHU. Also possess very rich experience in Administration. Has delivered more than 22 research papers in international seminars; and participated in over 30 workshops, seminars etc. Held important assignments such as Chairman, PDR of VSAT Monitoring system for DRDO 2004, Chairman, PDR, FLIR for ALH Version of NAG 1996 etc., to name a few. Also held important positions in various scientific and educational institutions of national importance.

MR. MAHESH SHAH

Director [UPTO 19.2.2011]:-

Mr. Mahesh Shah is a B.Com., LLB., FCA, FCS, FICWA, MBA[USA], MBIM[UK]. He entered upon the office of Director of the Company wef 20.2.2008. He is a Corporate Advisor on Company Law, Finance, Tax, Audit, Corporate Governance, Costing, Capital Market, Restructuring etc. He was very closely associated with all the professional bodies such as ICSI and ICWAI in various capacities such as Central Council Member, President, Vice-President; and is a former Member of Accounting Standard Board of the ICAI. He is a Member of the Technical Group for Depository System, Ministry of Finance, Government of India. Also associated with various trade bodies such as FICCI, ASSOCHAM, ICC etc., as Member of various committees. Has also authored a book titled Guide to Non Banking Financial companies, Procedure and Regulations. He has participated in large number of national and international seminars and presented papers. Is actively associated with many social bodies such as Bharat Relief Society, Bharatiya Vidya Bhawan, IRC, Chinmaya Mission etc.

MR. ANJIV GUPTA

Director [UPTO 4.9.2011]:-

Mr. Sanjiv Gupta, an alumnus of IIT Delhi, has had a long and distinguished career in marketing and operations in diverse categories. A Chemical Engineer, Mr. Sanjiv started professional career with Hindustan Lever Limited in 1984 and very quickly moved across the nitialedna in Sales and Marketing. In the last two years of his stint, he was the National Media Manager for the whole Unilever Group in India to consolidate buying and negotiation across all group companies and profit centres to tackle the imminent privatization and mushrooming of media. He joined the Coca-cola Company in India in 1997 as Vice-President Marketing and was instrumental in providing a bold new direction to its marketing campaigns; connecting with consumers with relevant brand messages like never before”! Following a successful inning in marketing, Mr. Sanjiv took over as Head of Operations for the company-owned bottling operations of Coca-Cola in India. He was elevated as the Deputy President of Coca-Cola India Division in April 2002, with above 60 plants under his supervision. During this period, he brought about significant operational improvements at the marketplace, resulting in the company reaching the break-even profit stage in 2001-2 and the India Division receiving the prestigious Woodruff Cup in 2002. He steered the company’s owned bottling as well as franchise operations and led the Indian operations to the country’s premier total beverage company. Under Shri Gupta, the Coca-Cola company was poised to change the beverage landscape once again with an exciting range of new product offerings in Juice, Carbonated Soft Drinks and numerous Packaging innovations. The company in India has consolidated its leadership position of a 60.2% Market Share and is a strategic market for the overall Coca-Cola Company. Mr. Sanjiv is now associated with a Infrastructure Fund initial on the growing infrastructure sector in India. He has delivered lectures in national and international forums and is actively associated with various commerce and trade bodies such as FICCI, CII etc., in various capacities

MR. ASHISH GUHA

Director [W.E.F. 21.5.2010]:-

Mr. Ashish Guha entered upon the office of Director of the Company w.e.f. 21^st May 2010. Mr. Ashish Guha joined Heidelberg Cement Group in August 2006 as the Managing Director of Heidelberg Cement India Limited. Mr. Guha consolidated Heidelberg Cement’s entry into India and has been instrumental in transforming the businesses of the acquired companies. Prior to joining Heidelberg Cement, Mr. Guha was an investment banker, a career spanning over two decades. He was the CEO of Lazard India and subsequently a senior partner with Amit Corporate Finance. Mr. Guha has had the distinction of varied experience in investment banking ranging from Treasury, Research, Capital Markets and Merger and Acquisitions. He has advised large multinational corporate on their entry into India as well as acquisitions. Some of the prominent clients handled by Mr. Guha include BAT, Baxter, France Telecom, General Motors, Lafarge. Mr. Guha has been involved with various industry forums like Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI) and has represented India as a delegate in many nations. He was also an active participant in the World Economic Forum at Davos in the late90’s. He has been part of many Government bodies including the one on Privatisation. Mr. Guha is an Honours Graduate in Economics and an alumnus of London Business School.

NOTE

The situation of the registered office of the company was changed from 10^th Floor, Statesman Hose, B – 148, Barakhama Road, New Delhi – 110001 to the present address w.e.f. 01.08.2007.

fixed assets

· land

· Buildings

· Cables

· Motor Vehicles

· Electrical Fittings

· Office machinery and Equipments

· Computer

· Furniture and Fixtures

· Software

AS PER WEBSITE DETAILS

PROFILE

Subject was incorporated on 15th September 2000. It took over the business of providing of telecom services and network management from the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom Operations (DTO), with effect from 1st October‘2000 on going concern basis. It is one of the largest and leading public sector units providing comprehensive range of telecom services in India.

Subject has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and winning customer's confidence. Today, it has about 43.74 million line basic telephone capacity, 8.83 million WLL capacity, 72.60 million GSM capacity, 37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts, 7330 cities/towns and 5.8 lakhs villages.

Subject is the only service provider, making focused efforts and planned initiatives to bridge the rural-urban digital divide in ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook and corner of the country and operates across India except New Delhi and Mumbai. Whether it is inaccessible areas of Siachen glacier or North-Eastern regions of the country, subject serves its customers with a wide bouquet of telecom services namely Wireline, CDMA mobile, GSM mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP, IN Services, FTTH, etc.

Subject is numero uno of India in all services in its license area. The company offers wide ranging and most transparent tariff schemes designed to suit every customer. Subject has 90.09 million cellular and 5.06 million WLL customers as on 31.07.2011. 3G Facility has been given to all 2G connections of subject. In basic services, Subject is miles ahead of its rivals, with 24.58 million wireline phone subscribers i.e. 71.93% share of the wireline subscriber base.

Subject has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data and video through the same Backbone and Broadband Access Network. At present there are 8.09 million broadband customers.

The company has vast experience in planning, installation, network integration and maintenance of switching and transmission networks and also has a world class ISO 9000 certified Telecom Training Institute.

During the 2010-11, turnover of subject is around Rs.297000.000 Millions.

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 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.54.04
UK Pound	1	Rs.81.80
Euro	1	Rs.71.41

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		63

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.