MIRA INFORM REPORT

Report Date :

05.03.2014

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) :	31.03.2013
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.
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 2546000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is the largest telecom company in the public sector. It provides telecom services and network management from the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom Operations (DTO). There are loss recorded by the company during 2013. However, networth of the company seems 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

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 / Corporate 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

DIRECTORS

As On 30.09.2013

Name :

Mr. Awadh Narayan Rai

Designation :

Director (Enterprises)

Address :

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

Date of Birth :

01.08.1955

Date of Appointment :

19.09.2011

DIN No.:

05100500

Name :

Mr. Naresh Kumar Gupta

Designation :

Director (CFA)

Date of Appointment :

01.06.2012

Address :

D-011/32, East Kideai Nagar, New Delhi – 110023, India

Date of Birth :

21.06.19.57

DIN No.:

01140881

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	U74899DL1987GOI027481	INTELLIGENT COMMUNICATION SYSTEMS INDIA LIMITED	Director	01/01/2003	01/01/2003	27/06/2007	Active	NO
2	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Whole-time director	01/06/2012	01/06/2012	-	Active	NO

Name :

Mrs. Rita Amitabh Teaotia

Designation :

Government Director

Address :

533/2 Sector 8, Gandhinagar – 382007, Gujarat, India

Date of Birth :

24.07.1958

Date of Appointment :

04.09.2012

DIN No.:

02876666

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	U75140GJ1977SGC003025	GUJARAT STATE RURAL DEVELOPMENT CORPORATION LIMITED	Director	17/02/2009	17/02/2009	27/07/2012	Active	NO
2	U74900GJ2010SGC060349	GUJARAT LIVELIHOOD PROMOTION COMPANY LIMITED	Director	21/04/2010	21/04/2010	20/03/2012	Active	NO
3	U85320AP2002NPL039032	NATIONAL INSTITUTE FOR SMART GOVERNMENT	Director	25/04/2012	25/04/2012	05/09/2012	Active	NO
4	U74999DL2009PLC192275	CSC e-GOVERNANCE SERVICES INDIA LIMITED	Director	30/04/2012	30/04/2012	28/08/2012	Active	NO
5	U74899DL1995NPL072045	NATIONAL INFORMATICS CENTRE SERVICES INCORPORATED	Director	16/08/2012	16/08/2012	27/11/2012	Active	NO
6	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Nominee director	04/09/2012	04/09/2012	-	Active	NO

Name :

Mr. Shahbaz Ali

Designation :

Government Director

Address :

RB 141, Phase – 1, Sector – 6, R K Puram, New Delhi – 110022, India

Date of Birth :

02.01.1965

Date of Appointment :

14.02.2012

DIN No.:

03282551

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	L64200MH1986PLC039266	Tata Communications Limited	Nominee director	15/09/2010	15/09/2010	09/08/2011	Active	NO
2	U74999DL1978GOI008911	TELECOMMUNICATIONS CONSULTANTS INDIA LIMITED	Director	01/08/2011	01/08/2011	-	Active	NO
3	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Nominee director	14/02/2012	14/02/2012	-	Active	NO
4	U45400DL2013GOI256742	TCIL LAKHNADONE TOLL ROAD LIMITED	Nominee director	21/08/2013	21/08/2013	-	Active	NO

Name :

Mr. Ajai Vikram Singh

Designation :

Director

Address :

Baghsuri House, Jaipur Road, Ajmer – 305001, Rajasthan, India

Date of Birth :

04.07.1945

Date of Appointment :

17.07.2012

DIN No.:

02184840

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	L36911MH1983PLC178299	SKIL Infrastructure Limited	Director	02/09/2008	09/05/2008	25/06/2012	Active	NO
2	L35110GJ1997PLC033193	PIPAVAV DEFENCE AND OFFSHORE ENGINEERING COMPANY LIMITED	Director	15/07/2008	30/05/2008	-	Active	NO
3	U65920MH1989PTC052900	OVERSEAS INFRASTRUCTURE ALLIANCE (INDIA) PRIVATE LIMITED	Director	28/09/2012	22/06/2012	-	Active	NO
4	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Director	17/07/2012	17/07/2012	-	Active	NO

Name :

Mr. Narayanaswamy Balakrishnan

Designation :

Director (Chairman, Audit)

Address :

DQ 19, IISC Quarters, Indian Institute of Science, Bangalore – 560012, Karnataka, India

Date of Birth :

01.06.1950

Date of Appointment :

17.07.2012

DIN No.:

00181842

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	U74899DL2005PTC142561	C-DOT Alcatel-Lucent Research Centre Private Limited	Director	24/11/2005	24/11/2005	-	Active	NO
2	L32309KA1954GOI000787	BHARAT ELECTRONICS LIMITED	Director	19/09/2006	23/05/2006	22/05/2009	Active	NO
3	U74210KA2006PLC041192	Indian Scientific Innovation Company Limited.	Director	12/12/2006	12/12/2006	13/08/2013	Active	NO
4	U72900DL2003NPL120999	NATIONAL INTERNET EXCHANGE OF INDIA	Additional director	22/01/2007	22/01/2007	28/09/2007	Active	NO
5	U72900MH1992PTC065186	INDIAN FEDERATION AGAINST SOFTWARE THEFT	Additional director	27/12/2007	27/12/2007	26/06/2008	Active	NO
6	U74120DL2008NPL182363	DATA SECURITY COUNCIL OF INDIA	Director	28/08/2009	06/09/2008	-	Active	NO
7	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Director	17/07/2012	17/07/2012	-	Active	NO

Name :	Mr. K.C.G.K. Pilai
Designation :	Director (Finance )

Name :	Mr. Anupam Shrivastva
Designation :	Director (Consumer Mobility)
Date of Appointment :	01.06.2013

KEY EXECUTIVES

Name :	Hem Chandra Pant
Designation :	Secretary
Address :	D-11/12, Pandara Road, New Delhi – 110003, India
Date of Birth/Age :	05.01.1961
Date of Appointment :	28.11.2000
Pan No. :	AAEPP9658D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders (Equity Shares)	No. of Shares
Central Government	4999998400

Names of Shareholders (Preference Shares)	No. of Shares
Central Government	7500000000
Total	7500000000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Government (Central and State)	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing comprehensive range of telegraph and telecom services.

Products/ Services :

v Telecom Services

v Telex, Telegraph, Circuits, Value Added Services

v Sale of Directories, Forms and Waste Paper

Description of product or service category	ITC Code
Telecommunication, Broadcasting and Information Supply Services	9984
Mobile Telecommunications services - access and use	99841310

GENERAL INFORMATION

No. of Employees :	363000 (Approximately)
Bankers :	· State Bank of India · Punjab National Bank · Corporation Bank · ICICI Bank · Indian Bank · HDFC Bank · Canara Bank · Union Bank of India · IDBI Bank · Oriental Bank of Commerce · Indus Ind Bank

Banking Relations :	--
Auditors :
Name :	Sharma Goel and Company Chartered Accountants
Address :	Y-59, Hauz, Khas, New Delhi- 110016, India
PAN.:	AABFS1604B
Statutory Auditors :	Walker Chandiok and Company
Address :	L-41, Connaught Circus, New Delhi – 110001, Delhi, India

Cost Auditors:

Name of the Cost Audit Firm	Name of the Circle
S.K.Bhatt and Associates	Central Auditor
Narasimha Murthy and Company	Andhra Pradesh
S.C.Mohanty and Associates	Chhattisgarh
K.Suryanayanan and Associates	Tamil Nadu and Kerala
M.Krishnaswamy and Associates	Chennai Phones and Karnataka
Rohit and Associates	Gujarat, Haryana and Maharashtra
Jaso and Company	Jharkhand
A.C.Dutta and Company	Kolkatta Phones and Andaman and Nicobar [2nd Preference for Andaman and Nicobar]
Bandyopadhyaya Bhaumik and Company	NE II Circle
Niran and Company	Orissa Circle
R.M.Bansal and Co	Jammu and Kashmir, Punjab and Uttar Pradesh (East)
KG Goyal and Company	Rajasthan
A.J.S. and Associates	Bihar , Assam and NE-I
Aman Malviya and Associates	Uttarakhand
Dhananjay V.Joshi and Associates	Madhya Pradesh
Chatterji and Company	West Bengal
K.B.Saxena and Associates	Uttar Pradesh (West)
Balwinder and Associates	Himachal Pradesh
Mou Banerjee and Company	Andaman and Nicobar Circle [1st preference].

CAPITAL STRUCTURE

As on 31.03.2013

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

Reconciliation of number of shares

Particulars	No. of Shares	Rs. In Millions 31.03.2013
Equity shares
Balance at the beginning of the year	5,000,000,000	50000.000
Changes during the year	--	--
Balance at the end of the year	5,000,000,000	50000.000
Preference shares
Balance at the beginning of the year	7,500,000,000	75000.000
Changes during the year	--	--
Balance at the end of the year	7,500,000,000	75000.000

Details of shares held by shareholders having more than 5% shares in the company

Particulars	No. of Shares	Percentage Holding
Equity shares
Central government (numbers)	4,999,998,400	99.99
Preference shares
Central government (numbers)	7,500,000,000	100.00

Notes:

a) Out of the shares issued by the Company 4,999,998,400 (P.Y. 4,999,998,400) equity shares of Rs. 10/-each and 7,500,000,000 (P.Y. 7,500,000,000) Preference share of Rs. 10/- each were allotted as fully paid up for consideration other than cash in the financial year 2000-01 and 2001-02 respectively. The President of India through its nominees is holding 1,600 shares of Rs. 10/ each as subscribers to the Memorandum and Articles of Association.

b) Vote of members : Every member present on person and being a holder of Equity Share shall have one vote and every person either as a General Proxy on behalf of a holder of Equity Share, shall have one vote or upon a poll every Member shall have one vote for every share held by him. On poll the voting rights of holder of Equity Share shall be specified in Section 87 of the Companies Act, 1956.The holder of Preference Share have a right to vote on resolution placed before the Company which directly affects the rights attached to their Preference Shares and subject to aforesaid, the holders of Preference Shares shall in respect of such capital be entitled to vote on every resolution placed before the Company at a meeting if the dividend due on such capital or any part of such dividend remains un paid in respect of an aggregate period of not less than two years preceding the date of commencement of the Meeting and where the holders of any Preference Shares have a right to vote as aforesaid on any resolution every such Member personally present shall have one vote and on a poll his voting right in respect of such Preference Share bears to the total paid up equity capital of the Company.

c) Division of profit : The profit of the Company, subject to any special rights relating thereto created or authorised to be created by the Articles had subject to the provisions of the Articles and also subject to the provisions of Section 205(2A) of the Companies Act, 1956 and, regarding transfer of the amount to reserve of the Company, shall be divisible among the Members with the approval of the President of India, in the proportion of the amount of capital paid or credited as paid-up on the shares held by them respectively.

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	125,000.000	125,000.000	125,000.000
(b) Reserves & Surplus	507,624.000	586,710.200	675,687.500
(c) Money received against share warrants	0.000	0.000	0.000
(d) Deferred Government Grant	3,763.300	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	636,387.300	711,710.200	800,687.500
(3) Non-Current Liabilities
(a) long-term borrowings	17,031.800	17,031.800	9,831.800
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	40,372.500	42,625.700	45,260.500
(d) long-term provisions	68,700.800	62,798.100	58,309.800
Total Non-current Liabilities (3)	126,105.100	122,455.600	113,402.100
(4) Current Liabilities
(a) Short term borrowings	25,611.400	13,204.700	7,200.000
(b) Trade payables	95,009.200	98,466.800	113,930.500
(c) Other current liabilities	68,461.700	67,892.900	62,237.400
(d) Short-term provisions	5,318.400	4,623.100	12,123.100
Total Current Liabilities (4)	194,400.700	184,187.500	195,491.000
TOTAL	956,893.100	1,018,353.300	1,109,580.600
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	455,575.300	500,667.900	551,600.500
(ii) Intangible Assets	152,888.500	162,005.300	171,323.100
(iii) Capital work-in-progress	36,960.000	42,270.500	52,341.200
(iv) Intangible assets under development	146.200	204.300	126.700
(b) Non-current Investments	65,751.100	60,135.200	55,014.100
(c) Deferred tax assets (net)	1,333.000	623.800	921.500
(d) Long-term Loan and Advances	68,472.800	65,047.600	7,463.700
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	781,126.900	830,954.600	838,790.800
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	37,720.900	35,967.800	39,482.400
(c) Trade receivables	29,533.900	39,621.800	44,318.100
(d) Cash and cash equivalents	11,612.500	18,850.900	25,000.800
(e) Short-term loans and advances	9,261.700	11,414.200	12,439.100
(f) Other current assets	77,391.400	69,182.500	134,274.500
Total Current Assets	165,520.400	175,037.200	255,514.900
III. Intra / Inter Circle Remittances	10245.800	12361.500	15274.900
TOTAL	956,893.100	1,018,353.300	1,109,580.500

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	256548.100	259821.300	270447.100
		Other Income	14730.800	19513.700	26429.100
		TOTAL (A)	271278.900	279335.000	296876.200
Less	EXPENSES
		Employee benefit expense	137578.200	134060.400	137909.500
		Other expenses	124547.100	138216.300	120918.500
		Prior period items	1828.200	1683.200	2647.900
		TOTAL (B)	263953.500	273959.900	261475.900
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7325.400	5375.100	35400.3
Less	FINANCIAL EXPENSES (D)		3514.700	1841.200	3943.900
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3810.700	3533.900	31456.4
Less/ Add	DEPRECIATION/ AMORTISATION (F)		83364.300	91743.200	97254.300
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(79553.600)	(88209.300)	(65797.900)
Less	TAX (H)		(709.200)	297.700	(1955.300)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(78844.400)	(88507.000)	(63842.600)
	EARNINGS IN FOREIGN CURRENCY
	Training Fees		5.100	10.900	0.300
	Income From Services		842.300	974.700	282.400
	Others		56.900	90.800	0.000
	TOTAL EARNINGS		904.300	1076.400	282.700
	VALUE OF IMPORTS
	Raw Materials		240.100	0.000	0.000
	Components and Stores parts		0.000	0.000	0.000
	Capital Goods		5786.100	57.900	3195.600
	VALUE OF IMPORTS		6026.200	57.900	3195.600
	Earnings / (Loss) Per Share (Rs.)		(15.77)	(17.70)	(12.77)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(29.06)	(31.68)	(21.50)
Net Profit Margin (PBT/Sales)	(%)	(31.01)	(33.94)	(24.33)
Return on Total Assets (PBT/Total Assets}	(%)	(9.44)	(9.77)	(6.67)
Return on Investment (ROI) (PBT/Networth)		(0.13)	(0.12)	(0.08)
Debt Equity Ratio (Total Debt /Networth)		0.07	0.04	0.02
Current Ratio (Current Asset/Current Liability)		0.85	0.95	1.31

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	125,000.000	125,000.000	125,000.000
Reserves & Surplus	675,687.500	586,710.200	507,624.000
Deferred Government Grant	0.000	0.000	3,763.300
Net worth	800,687.500	711,710.200	636,387.300
long-term borrowings	9,831.800	17,031.800	17,031.800
Short term borrowings	7,200.000	13,204.700	25,611.400
Total borrowings	17,031.800	30,236.500	42,643.200
Debt/Equity ratio	0.021	0.042	0.067

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	270,447.100	259,821.300	256,548.100
		(3.929)	(1.260)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	270,447.100	259,821.300	256,548.100
Profit After Tax	(63,842.600)	(88,507.000)	(78,844.400)
	(23.61%)	(34.06%)	(30.73%)

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	Yes
23]	Banking Details	Yes
24]	Banking facility details	No
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

DETAILS OF LITIGATIONS

Case Details
Bench:- Bombay
Presentation Date :- 17.09.2013
Lodging No:-	ARBPL/1572/2013	Failing Date:-	17.09.2013	Reg. No.:-			ARBP/1006/2013		Reg. Date:-	01.10.2013
Petitioner:-	SIEMENS FINANCIAL SERVICES PRIVATE LIMITED		Respondent:-	SAI INFOSYSTEM (INDIA) LIMITED AND ANR.
Petn.Adv:-	ALMT LEGAL (0)		Res.Adv.			MRS. NEETA V. MASURKAR (388)
District:-	MUMBAI
Bench:-	SINGLE		Category:-	ARBITRATION ACT.
Status:-	Pre-Admission		Stage:-	ARBP FOR HEARING AND FINAL DISPOSAL U/S 9
Last Date:-	26.02.2014
Last Coram:-	HON’BLE SHRI JUSTICE N.M. JAMDAR
Act:-	Arbitration and Conciliation Act 1996				Under Section :-			9

UNSECURED LOANS

Particulars	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
-15 Year Government of India Loan (Note a)	9831.800	9831.800
- Government of India (Non-refundable and non-interest bearing ) [Note b]	7200.000	7200.000
SHORT TERM BORROWINGS
Loan from Banks (unsecured) [Note a]	25611.400	13204.700
Total	42643.200	30236.500

NOTE:

LONG TERM BORROWINGS

a) Loan from Government of India

The Notional Loan of Rs. 75000000 Millions, which is a part of capital structure of the Company, had a moratorium on repayment of the principal and interest thereon up to 31 March 2005. The Company has been representing since long to the Government of India for reduction in the rate of interest and withdrawal of terms and conditions towards penal interest and prepayment charges. However, since the Ministry of Finance, Government of India has not agreed to extend any relief in the form of reduction of interest rate on the loan, as informed by the DoT through letter no. I-432008-B dated 21 June 2011, the difference of Rs. 1886.800 Millions between the books of BSNL and DoT in respect of outstanding principal amount of the loan has been accounted in the books of the Company in the financial year 2010-11.During the current period no repayment of loan was made however the interest @14.5% (penal interest @ 2.75% on interest due but not paid) is accounted for on the amount of outstanding principal and the interest due but not paid.

b) Non-refundable and Non-Interest bearing Loan from Government of India

The Government of India has sanctioned a non-refundable and non-interest bearing advance of Rs 7200.000Millions as budgetary support for the ongoing VPT program of BSNL vide NO.25-1/2001-SAT/pp (pt) dated13 January 2003. The amount has already been utilised for the purpose for which it was sanctioned. Approval of DoT has already been sought to convert this into other income.

SHORT TERM BORROWINGS

a) Short term loans from the bank comprises of the following:

(i) Short term loan of Rs. 18204.700 Millions sanctioned by Union Bank is repayable on demand and carries interest rate at base rate with monthly rests. Short term loan of Rs. 16980.900 Millions is availed at 10.50% p.a (floating).

(ii) Short term loan of Rs. 12500.000 Millions sanctioned by Corporation Bank is repayable on demand andcarries interest @ base rate with monthly rests. Short term loan of Rs. 8630.500 Millions is availed at 10.50% p.a (floating).

NOTE

· No Charges Exist for Company.

CORPORATE INFORMATION

Bharat Sanchar Nigam Limited (the “Company” or “BSNL”) is a Public Sector Company fully owned by Government of India and was formed on 15 September 2000 in pursuance of Telecom Policy 1999, to take over the ongoing business of the Department of Telecom Services (DTS) and Department of Telecom Operations (DTO) from 01 October 2000. The Company has been incorporated as a company with limited liability by shares under the Companies Act, 1956 with its registered Corporate, office in New Delhi.

FINANCIAL PERFORMANCE

*Wealth Tax for the current year Rs.8.500 Millions which is included in the Administration operating and Other Expenses.

During the year 2012-13, the Company incurred a loss of Rs.78844.400 Millions.

SERVICES AND PLANS

The Company is committed to its mission and objective to provide telecom services at affordable tariffs to the country, having 121.650 million customers connected across the country as on 31stMarch 2013. Apart from covering 1259 cities with 3G services, all the 2G customer services have been upgraded to 3G platform.

MOBILE SEGMENT

The Company has covered all the District Headquarters of the country with GSM services; and, plans to cover the villages having population of 1000 in the coming year subject to techno-commercial viability. To meet the capacity requirement for augmentation of GSM services, Phase VII expansion project aims to add 15 Million Lines.

ENTERPRISE BUSINESS

The Enterprise vertical formed in 2009 caters to the business needs of Enterprise customers segmented in three categories of Platinum, Gold and Silver. To provide focused attention, at eight major cities, the Platinum offices cater to the Platinum group, which are headed by GM level officer. To take care of the Gold, Silver and all other Enterprise customers, separate Enterprise Business Groups have been carved out in the Circles. This segment is growing at a rate of 20%.

ILD OPERATIONS

The Company has been offering various ILD Services, with total monthly incoming and outgoing traffic for voice in terms of minutes are around 500 Million and 20 Million respectively. To cope with the ever increasing volume of traffic, the company also plans to have more interconnection, NNI and ITFS agreements in 2013-14.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

In the last decade, the Telecom Sector significantly contributed to social economic development of the country and also attained the stature of a dynamic parameter in measuring growth in Indian economic scenario. Being the Second largest telecom network of the world, impact of the telecom sector, its growth and significance in nation’s economy play a pivotal role. Gradual shifting of service delivery in e-mode by the Government and other players had turned the sector as key player in most of the sectors. Emergence of the telecom sector as key development catalyst, the services assuming importance as the last mile in e-service delivery programmes demand active leverage of the sector to derive maximum mileage. In the above scenario, Low rural teledensity and low penetration of internet in the country pose a strong business case for the ICT Sector to chase growth.

MAJOR REGULATORY DEVELOPMENTS/CHALLENGES

The Telecom Regulatory Authority of India (TRAI), keeping in view the healthy growth of the sector, has issued various regulations in the previous year. Entry of more advanced technologies and shifting of consumer’s focus from wired-line to wireless technology have already resulted in a huge user base. Further technological advancements and offerings in the ICT Sector foresee greater degree of convergence. For taking maximum mileage of the advancement of technologies for nation’s growth, optimum utilization of the available spectrum will be required. Therefore, coming days foresee completer e-farming of the spectrum and new policies for optimum pricing and utilization of the spectrum including sharing of spectrum.

OUTLOOK

Urge of the consumer for accessing various services such as Stock market data, Health, Education related and Entertainment has gradually shifted the focus to wireless segment; thus, the demand for M-VAS applications and service will grow manifold. Country is already witnessing a steady growth of on-line business transactions. Technological advancements will further push the demand and growth of internet/broadband segment in the coming years. With broadband penetration, the market is expected to grow further, especially in rural areas, where teledensity and broadband penetration is low. Thus, a strong growth story is waiting to happen in the telecom sector, which will benefit the BSNL also.

RISKS AND CONCERNS

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Being the successor of erstwhile Central Government Departments of Telecom Services and Telecom Operations, the company has a well-defined and planned internal control systems and procedures commensurate with its size and operations. Internal checks are routinely carried out by the internal audit teams all over the country.

Apart from its own Internal Audit machinery. The Company, being the Central Public Sector Enterprise, is subject to the Resident Audit Office scheme of the Director General of P & T Audit under the a egis of C & AG of India, CVC Mechanism and the Guidelines of the Department of Public Enterprises. In accordance with the Guidelines on Corporate Governance Norms issued by the Department of Public Enterprises, the Audit Committee of the Board had discussions with the Statutory Auditors and the Internal Audit Teams and reviewed the Internal Audit Paras. Further, pursuant to the directions of the Government of India, Ministry of Corporate Affairs, Cost Audit Branch for Cost Audit of the Telecommunication Companies by the Cost Accountants, Company has appointed 19 Cost Audit Firms – One Central Auditor and 18 Auditors for various circles spread across the country.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year 2012-13, the Company incurred a loss of Rs.78844.400 Millions [Previous Year Rs.88507.000 Millions]. While the Income From Services is Rs.256548.100 Millions [Previous Year Rs.259821.300 Millions],Other Income was Rs.14730.800 Millions [Previous Year Rs.19513.700 Millions].There was a reduction of 1.26% in Income from Services in comparison to previous year, the Other Income reduced by 24.51%. There was a reduction of 2.88% in the Total Income in comparison with the previous year. The Employee Remuneration and Office and Administration expense has shown an increase of 2.62%and 1.05%, respectively.

fixed assets

· land

· Buildings

· Cables

· Motor Vehicles

· Electrical Fittings

· Office machinery and Equipments

· Computer

· Furniture and Fixtures

· Software

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.62.07
UK Pound	1	Rs.103.61
Euro	1	Rs.85.03

INFORMATION DETAILS

Report Prepared by :

SNT

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	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.