MIRA INFORM REPORT

Report Date :

21.04.2014

IDENTIFICATION DETAILS

Name :	BHARTI AIRTEL SERVICES LIMITED (w.e.f. 22.05.2011)
Formerly Known As :	BHARTI COMTEL LIMITED
Registered Office :	Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase – II, New Delhi - 110070
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.12.1997
Com. Reg. No.:	55-091001
Capital Investment / Paid-up Capital :	Rs. 1.000 Million
CIN No.: [Company Identification No.]	U64201DL1997PLC091001
PAN No.: [Permanent Account No.]	AAACB8917G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business to sell hardware for Internet and Satellite business and rendering of manpower services to group companies.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (20)

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 :	Clear
Comments :	Subject is an established company having moderate track record. There are accumulated losses recorded by the company which has eroded net worth of the company. Business is active. Payment terms are slow. The company can be considered for business dealing 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.

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-11-46666100)

LOCATIONS

Registered Office :	Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase – II, New Delhi – 110070, India
Tel. No. :	91-11-46660100/ 42666500
Fax No. :	91-11-41666137
E-Mail :	rp.ghildiyal@bharti.in
Website :	www.bharti.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Srikanth Balachandran

Designation :

Director

Address :

801, Tower A-5, World SPA East, Sector 31 & 40, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

06.09.1961

Qualification :

He holds a Commerce degree from the Madras University and is a qualified Chartered Accountant.

Date of Appointment :

02.05.2011

DIN No. :

02815932

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1995PLC067527	BHARTI HEXACOM LIMITED	Director	16/09/2010	16/12/2009	16/08/2011	Active	NO
2	U64200DL2010PLC201058	AIRTEL M COMMERCE SERVICES LIMITED	Director	03/06/2011	01/04/2010	07/09/2011	Active	NO
3	U64201DL1997PLC091001	BHARTI AIRTEL SERVICES LIMITED	Director	01/09/2011	02/05/2011	-	Active	NO
4	U92200DL2006PLC156075	BHARTI TELEMEDIA LIMITED	Managing director	23/08/2013	08/02/2012	-	Active	NO
5	U32204DL2008PLC183976	BHARTI TELEPORTS LIMITED	Director	28/09/2012	26/04/2012	-	Active	NO
6	U64200DL2010PTC205334	WIRELESS BROADBAND BUSINESS SERVICES (HARYANA) PRIVATE LIMITED	Additional director	25/06/2013	25/06/2013	-	Amalgamated	NO
7	U64200DL2010PTC205333	WIRELESS BROADBAND BUSINESS SERVICES (DELHI) PRIVATE LIMITED	Additional director	25/06/2013	25/06/2013	-	Amalgamated	NO
8	U64200DL2010PTC205336	WIRELESS BROADBAND BUSINESS SERVICES (KERALA) PRIVATE LIMITED	Additional director	25/06/2013	25/06/2013	-	Amalgamated	NO
9	U72900MH2007PTC175384	AIRTEL BROADBAND SERVICES PRIVATE LIMITED	Director	30/09/2013	25/06/2013	-	Active	NO

Name :

Mr. Gopal Vittal

Designation :

Director

Address :

Flat No.7, Hill Park Apartment, Alexander Graham Road, Malabar Hill, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

18.06.1966

Date of Appointment :

30.09.2013

DIN No. :

02291778

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999PN1994PTC081290	KIMBERLY-CLARK LEVER PRIVATE LIMITED	Nominee director	25/07/2008	25/07/2008	06/03/2012	Active	NO
2	U51900MH1963PLC012667	UNILEVER INDIA EXPORTS LIMITED	Director	22/06/2009	01/09/2008	13/07/2009	Active	NO
3	L15140MH1933PLC002030	HINDUSTAN UNILEVER LIMITED	Whole-time director	03/07/2009	01/09/2008	20/01/2012	Active	NO
4	U91200MH1985GAP037820	THE ADVERTISING STANDARDS COUNCIL OF INDIA	Director	18/09/2008	18/09/2008	31/03/2012	Active	NO
5	U24240MH1974NPL017236	INDIAN BEAUTY AND HYGIENE ASSOCIATION	Director	24/09/2008	24/09/2008	01/03/2012	Active	NO
6	U74300MH1952GAP008859	THE INDIAN SOCIETY OF ADVERTISERS	Director	26/09/2008	26/09/2008	26/03/2012	Active	NO
7	U85310MH2006NPL163277	ST. JUDE INDIA CHILDCARE CENTRES	Director	10/09/2010	12/01/2010	-	Active	NO
8	L74899DL1995PLC070609	BHARTI AIRTEL LIMITED	Managing director	28/03/2013	01/02/2013	-	Active	NO
9	U64200DL2010PLC201058	AIRTEL M COMMERCE SERVICES LIMITED	Director	05/09/2013	29/04/2013	-	Active	NO
10	U64200DL2010PTC205333	WIRELESS BROADBAND BUSINESS SERVICES (DELHI) PRIVATE LIMITED	Additional director	12/07/2013	12/07/2013	-	Amalgamated	NO
11	U64200DL2010PTC205334	WIRELESS BROADBAND BUSINESS SERVICES (HARYANA) PRIVATE LIMITED	Additional director	12/07/2013	12/07/2013	-	Amalgamated	NO
12	U64200DL2010PTC205336	WIRELESS BROADBAND BUSINESS SERVICES (KERALA) PRIVATE LIMITED	Additional director	12/07/2013	12/07/2013	-	Amalgamated	NO
13	U72900MH2007PTC175384	AIRTEL BROADBAND SERVICES PRIVATE LIMITED	Director	30/09/2013	12/07/2013	-	Active	NO
14	U64201DL1997PLC091001	BHARTI AIRTEL SERVICES LIMITED	Director	30/09/2013	12/07/2013	-	Active	NO
15	U92100DL2007PLC170574	INDUS TOWERS LIMITED	Additional director	19/07/2013	19/07/2013	-	Active	NO

Name :

Mr. Badal Bagri

Designation :

Director

Address :

MA-1/2, Flat No. 4D, Garden Estate, Phase III, Qutab Enclave, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

27.10.1972

Date of Appointment :

29.10.2013

DIN No. :

00367278

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31300MH2005PTC151752	SREESOLDER MANUFACTURING COMPANY PRIVATE LIMITED	Director	03/03/2005	03/03/2005	05/09/2007	Active	NO
2	U72900DL1999PTC102432	GE INDIA BUSINESS SERVICES PRIVATE LIMITED	Director	02/06/2005	02/06/2005	22/02/2008	Active	NO
3	U31500DL1992PTC194724	GE INDIA INDUSTRIAL PRIVATE LIMITED	Director	02/09/2005	02/09/2005	19/06/2008	Active	NO
4	U31909KA1993PTC014927	EXA THERMOMETRICS INDIA PRIVATE LIMITED	Director	30/09/2005	30/09/2005	28/11/2007	Active	NO
5	U51909DL1996PTC076903	GE POWER SERVICES (INDIA) PRIVATE LIMITED	Director	18/09/2006	18/09/2006	26/09/2007	Active	NO
6	U65929DL2001PTC110743	GE STRATEGIC INVESTMENTS INDIA(PVT. CO. WITH ULTD LIABILITY	Director	18/06/2007	18/06/2007	03/06/2008	Active	NO
7	U64201DL1997PLC091001	BHARTI AIRTEL SERVICES LIMITED	Additional director	29/10/2013	29/10/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Bhaskar Chakraborty
Designation :	Chief Supply Chain Officer
Name :	Mr. Vishal Gupta
Designation :	Sr. Vice President-SCM
Name :	Sonal Kapasi
Designation :	Sr. Vice President-Business Head
Name :	Mr. Abhay Seth
Designation :	Vice President-Marketing
Name :	Mr. Sreedhar Krishna Menon
Designation :	Sr. Vice President-Finance
Name :	Mr. Amitabh Prasad
Designation :	Sr. Vice President-Business Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Bharti Airtel Limited, India	99994
Sunil Bharti Mittal (Holding on behalf of Bharti Airtel Limited)	1
Rakesh Bharti Mittal (Holding on behalf of Bharti Airtel Limited)	1
Rajan Bharti Mittal (Holding on behalf of Bharti Airtel Limited)	1
Viresh Dayal (Holding on behalf of Bharti Airtel Limited)	1
Akhil Gupta (Holding on behalf of Bharti Airtel Limited)	1
Devendra Khanna (Holding on behalf of Bharti Airtel Limited)	1
Total	100000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business to sell hardware for Internet and Satellite business and rendering of manpower services to group companies.

Products :

Item Code No. (ITC Code)	Product Description
99831176	Business Process Outsourcing, Knowledge Process Outsourcing including human resource services

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	· State Bank of India · HDFC Bank Limited

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Associates LLP Chartered Accountants
Address :	Golf Course Corporate, Tower B, Sector 42, Golf Course Roa,d Gurgaon – 122002, Haryana, India
Income-tax PAN of auditor or auditor's firm :	AABFS3421N
Holding company:	Bharti Airtel Limited, India CIN No.:L74899DL1995PLC070609
Joint venture:	Forum I Aviation Limited CIN No.:U62200DL2004PLC131655
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	· Beetel Teletech Limited CIN No.:U32204DL1982PLC179800 · FieldFresh Foods Private Limited CIN No.:U15133HR2004PTC041215 · Bharti Wal-Mart Private Limited CIN No.:U51909DL2007PTC167118 · Bharti Retail Limited CIN No.:U51909DL2007PLC158953 · Bharti Axa General Insurance Company Limited CIN No.:U66030KA2007PLC043362
Fellow Subsidiary company:	· Bharti Hexacom Limited CIN No.:U74899DL1995PLC067527 · Bharti Airtel(USA) Limited · Bharti Airtel (UK) lRD. · Bharti Telemedia Limited CIN No.:U92200DL2006PLC156075 · Bharti Infratel Limited CIN No.:L64201DL2006PLC156038 · Airtel M Commerce Services Limited CIN No.:U64200DL2010PLC201058 · Bharti Airtel Lanka (Private) Limited
Other Related Parties:	· Bharti Airtel International (Netherlands) B. V · Airtel Bangladesh Limited · Indus Towers Limited CIN No.:U92100DL2007PLC170574 · Bharti Airtel Nigeria B.V · Bharti Airtel Tanzania B. V · Africa Towers N. V · Airtel (Ghana) Limited · Airtel Malawi Limited · Airtel Network Kenya Limited · Airtel Networks Limited · Airtel Sierra Leone · Airtel Tanzania Limited · Bharti Airtel Uganda Holdings B. V. · Celtel Congo RDC S.a.r.l · Celtel Niger S.A. · Celtel Zambia PLC · Airtel (Seychelles) Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs.10/- each	Rs. 1.000 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1.000	1.000	1.000
(b) Reserves & Surplus	(687.000)	(601.000)	(445.000)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	(686.000)	(600.000)	(444.000)
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	731.000	731.000	327.000
(d) long-term provisions	160.000	142.000	143.000
Total Non-current Liabilities (3)	891.000	873.000	470.000
(4) Current Liabilities
(a) Short term borrowings	0.000	56.000	56.000
(b) Trade payables	945.000	721.000	1404.000
(c) Other current liabilities	914.000	722.000	622.000
(d) Short-term provisions	196.000	194.000	172.000
Total Current Liabilities (4)	2055.000	1693.000	2254.000
TOTAL	2260.000	1966.000	2280.000
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	240.000	245.000	320.000
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	17.000	46.000	109.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	46.000	46.000	66.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	69.000
Total Non-Current Assets	303.000	337.000	564.000
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	258.000	190.000	375.000
(c) Trade receivables	334.000	359.000	483.000
(d) Cash and cash equivalents	150.000	68.000	46.000
(e) Short-term loans and advances	614.000	516.000	401.000
(f) Other current assets	601.000	496.000	411.000
Total Current Assets	1957.000	1629.000	1716.000
TOTAL	2260.000	1966.000	2280.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	4775.000	4400.000	3770.000
		Other Income	14.000	14.000	9.000
		TOTAL (A)	4789.000	4414.000	3779.000
Less	EXPENSES
		Purchases of Stock-in-Trade	1485.000	707.000	1197.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(665.000)	(2.000)	(624.000)
		Employees benefits expense	2858.000	2638.000	2386.000
		Other expenses	990.000	967.000	985.000
		TOTAL (B)	4668.000	4310.000	3944.000
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		121.000	104.000	(165.000)
Less	FINANCIAL EXPENSES (D)		1.000	2.000	1.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		120.000	102.000	(166.000)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		146.000	245.000	196.000
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(26.000)	(143.000)	(362.000)
Less	TAX (H)		60.000	13.000	87.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(86.000)	(156.000)	(449.000)
	EARNINGS IN FOREIGN CURRENCY
		Service Revenue	985.000	737.000	272.000
	TOTAL EARNINGS		985.000	737.000	272.000
	IMPORTS
		Capital Goods	91.000	120.000	236.000
	TOTAL IMPORTS		91.000	120.000	236.000
	Earnings / (Loss) Per Share (Rs.)		(860.00)	(1560.00)	(4490.00)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(1.80)	(3.53)	(11.88)
Net Profit Margin (PBT/Sales)	(%)	(0.54)	(3.25)	(9.60)
Return on Total Assets (PBT/Total Assets}	(%)	(1.18)	(7.63)	(17.20)
Return on Investment (ROI) (PBT/Networth)		0.04	0.24	0.82
Debt Equity Ratio (Total Debt/Networth)		0.00	(0.09)	(0.13)
Current Ratio (Current Asset/Current Liability)		0.95	0.96	0.76

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	1.000	1.000	1.000
Reserves & Surplus	(445.000)	(601.000)	(687.000)
Net worth	(444.000)	(600.000)	(686.000)
long-term borrowings	0.000	0.000	0.000
Short term borrowings	56.000	56.000	0.000
Total borrowings	56.000	56.000	0.000
Debt/Equity ratio	(0.126)	(0.093)	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	3770.000	4400.000	4775.000
		16.711	8.523

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	3770.000	4400.000	4775.000
Profit	(449.000)	(156.000)	(86.000)
	(11.91%)	(3.55%)	(1.80%)

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	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 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	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 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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans and advances from related parties	0.000	56.000
Total	0.000	56.000

CHANGE OF ADDRESS

The registered office of the company has been shifted from Aravali Crescent 1, Nelson Mandela Road, Vasant Kunj, Phase-II, New Delhi, 110070, India to the present address w.e.f. 09.02.2010.

CORPORATE INFORMATION

The Company or BASL incorporated in India on December 5, 1997 is a Company promoted by Bharti Airtel Limited (Bharti), a Company incorporated under laws of India. The object of the Company is to sell hardware for Internet and Satellite business and rendering of manpower services to group companies.

BUSINESS REVIEW

The income of the Company has increased by Rs. 375.000 Millions from Rs. 4,414.000 Millions in 2011-12 to Rs. 4,789.000 Millions in 2012-13. The Profit before depreciation and taxation for the year ended March 31, 2013 was Rs. 120.000 Millions as compared to Rs.102.000 Millions. for year ended March 31, 2012.

CONTINGENT LIABILITIES (AS ON 31.03.2013):

(i) Bank Guarantee outstanding as at March 31, 2013 Rs 162.000 Millions (March 31, 2012 Rs 70.000 Millions)

(ii) Claims against the Company not acknowledged as debt: (Excluding cases where the possibility of any

outflow in settlement is remote):

PARTICULARS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
(i) Taxes, Duties and Other Demands (under adjudication/appeal/dispute)
-Income Tax (see note c below)	89.000	71.000
-Others	1.000	1.000

a) The Company has received demand from Income Tax Authorities in relation to certain disallowances in previous assessment years.

b) U.P Sales Tax Authority has raised a Sales Tax Demand under Right to Use Act against the Internet connectivity provided to customers in U.P.

Name of the Statue	Nature of the Dues	Period to which it relates F.Y.	Amount Disputed (Rupees Millions)	Amount Deposited (Rupees Millions)	Forum where the dispute is pending
Income Tax Act, 1961	Income Tax	2002-03	7.000	7.000	Assessing Officer
Income Tax Act, 1961	Income Tax	2007-08	48.000	48.000	CIT (Appeals)
Income Tax Act, 1961	Income Tax	2007-08; 2009-12	34.000	-	CIT (Appeals)

FIXED ASSETS

· Freehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Computer

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.60.38
UK Pound	1	Rs.101.63
Euro	1	Rs.83.57

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUM
Report Prepared by :	MRI

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	1
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	4
--RESERVES	1~10	1
--CREDIT LINES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		20

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.