Spice Communications Limited 1000 1000000
(formerly known as Spice Communications Private Limited till 27 December 2006)
Regd Office 60-D, Sainik Farms, New Delhi-110062
Corporate Office: Spice Towers, No 75, Richmond Road, Civil Station, Bangalore - 560 025
Unaudited Financial Results for the quarter and six months ended 30 June  2007
   (All figures in Rs. Millions except as stated otherwise) 
Particulars  Unaudited   Audited  Unaudited Check Variance Analysis 
 Quarter Ended   Six Months Ended   Financial year (six months) ended  Quarter Ended Quarter Ended Six Months Ended
 30.06.2007   30.06.2006   30.06.2007   30.06.2006   31.12.2006  31.03.2007 30.06.2007 30.06.2007
Sale/Service Income               2,317.47               1,763.98               4,454.53 #####                     3,851.11 2137.06 0.00 0.00 31% 26%
Other Income                   230.68                 104.05                   303.73  754.88                        105.88 73.05 0.00 0.00 122% -60%
Sales of Goods                             -                         -                               -          -                                -   0.00 0.00 0.00 #### ####
Total Income                2,548.15               1,868.03               4,758.26 #####                     3,956.99 #### 0.00 0.00 36% 11%
Network Operating cost                   725.32                 578.57               1,398.46 #####                     1,236.33 673.14 0.00 0.00 25% 16%
Operating Lease Charges                             -                         -                               -          -                                -   182.75 182.75 #### ####
Administrative costs                   193.62                 171.44                   372.55  522.34                        421.27 178.93 0.00 0.00 13% -29%
Personnel Costs                   119.59                 113.62                   259.94  215.25                        227.93 140.35 0.00 0.00 5% 21%
Sales and Marketing costs                   367.19                 325.36                   629.57  705.69                        565.62 262.38 0.00 0.00 13% -11%
Cost of Goods Sold                     18.07                       -                       52.18      0.17                         32.04 34.11 0.00 0.00 #### ####
                0.00 #### ####
License fees and WPC Charges                   207.98                 153.95                   396.33  313.16                        340.03 188.35 0.00 0.00 35% 27%
Expenditure before lease charges, finance cost, depreciation,amortization and tax               1,631.77               1,342.94               3,109.03 #####                     2,823.22 #### 0.00 0.00 22% 5%
Profit before lease charges, finance cost,depreciation,amortization and tax                    916.38                   525.09               1,649.23 ####                       1,133.77 ####   ########      
Lease Charges-Passive Infrastructure                   202.83                   20.93                   385.58    35.05                        181.89 182.75      
Profit before finance cost, depreciation,amortization and tax                   713.55                   504.16               1,263.65 ####                           951.88 #### 0.00 0.00 42% -3%
Finance Cost                   324.12                 300.14                   652.46  485.25                        638.05 328.34 0.00 0.00 8% 34%
CASH PROFIT                   592.26                 224.95                   996.77  847.19                        495.72  404.51 0.00 0.00 163% 18%
Depreciation                   282.29                 210.04                   547.58  456.58                        495.09 265.29 0.00 0.00 34% 20%
Amortisation                   100.55                   99.82                   199.98  199.26                        200.69 99.43 0.00 0.00 1% 0%
Profit(+)/Loss(-)Before Tax                        6.59                (105.84)                (136.37) ####                        (381.95) #### (0.00) (0.00) -106% -187%
Provision for Taxation                             -                               -                               -            -                                -     0.00 0.00    
Fringe Benefit Tax                        2.43                    2.86                        6.15      7.82                           4.92 3.72 0.00 0.00 -15% -21%
                            -  Current                             -                                      -     0.00 0.00 #### ####
                            -  Deferred               0.00 #### ####
Exceptional Items                         -            -         0.00 #### ####
Prior period Expense/(Income)                             -                      6.82                             -        6.82                              -     0.00 0.00 -100% -100%
Net Profit(+)/Loss(-)after tax                        4.16                (115.52)                (142.52)  141.66                        (386.87) #### (0.00) (0.00) -104% -201%
Face Value of Share (in Rs.)                     10.00                   10.00                     10.00    10.00                         10.00 10.00   10.00    
Paid-up Equity Share Capital               5,768.14               5,519.40               5,768.14 #####                     5,519.40 0.00   0.00    
                   
(Face value Rs. 10 per share)                  
                   
Reserves :  (excluding Revaluation Reserves)               #VALUE!    
-Debit balance in profit and loss account  -   -   -                       (7,043.21)        
-Share Premium on Pre-IPO allotment                   870.59                       -                     870.59        -                                -          
Basic EPS (in Rs.) (not to be annualised)                        0.01                   (0.21)                     (0.26)      0.26                          (0.70)     0.26    
Diluted EPS (in Rs.) (not to be annualised)                        0.01                   (0.21)                     (0.26)      0.26                          (0.70)     0.26    
Non-promoter Shareholding (Nos.)       295,324,519          270,450,600       295,324,519                  270,450,630        
Non-promoter Shareholding (%) 51.20% 49% 51.20%   49%        
                   
 Notes to the statement form an integral part of the statement   
For BSR & Co.                              For and on behalf of the Board of Spice Communications Limited  
Chartered Accountants  
   
   
Akhil Bansal  Preeti Malhotra 
Partner  Director   Director   Company Secretary 
Membership no: 090906  
 Place: Gurgaon  Place:    Place:    Place:  
 Date:   Date:   Date:   Date: 
           
Notes: 
1.The company has sucessfully completed its initial public offering (IPO), and listed its equity shares on Bombay Stock Exchange (BSE) on 19 July 2007. 
2. (a) On 5 June 2007, Special Committee of the Board of Directors allotted  24,873,889 equity shares of Rs. 10 each at a price of Rs. 45 per equity share to certain pre-IPO investors.
(b) On completion of IPO, the company has allotted  113,111,111 Equity Shares of Rs. 10 each at a price of Rs. 46 per share on 10 July 2007. Out of the proceeds of this IPO Rs. 3,000 million will be utilised towards repayment of outstanding term loans.
(c) The weighted average number of equity shares outstanding during the period has been considered for calculating the Earning Per Share in terms of the Accounting Standard-20. Consequently, the diluted earning per share has been computed without considering the proposed offering of 113,111,111 equity shares which has, as mentioned in note 3(b) above, been allotted subsequent to period end.
3. The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their respective meetings held on 27 July 2007. The results for the quarter and six months ended 30 June 2007 have been reviewed by the statutory auditors under generally accepted auditing standards in India. Since the Company was listed only on 19 July 2007, the prior period comparatives has been presented only for the quarter ended 30 June 2006. This prior period comparitive presented are not audited/reviewed by the auditors. 
4.The company is in the business of providing cellular mobile telephone services in the states of Punjab and Karnataka.
5. Other income for quarter ended 30 June 2007 includes foreign exchange gain for Rs. 171 million (for six months ended 30 June 2007- Rs. 213 million). Out of the above, foreign exchange gain of Rs. 114 million for quarter ended 30 June 2007 (Rs. 132.14 million for six months ended 30 June 2007) is on account of foreign exchange gain on outstanding liabilities relating to fixed assets acquired from a country outside India in accordance with requirements of Companies (Accounting Standards) Rule, 2006 read in consonance with Accounting Standard (revised)-11.
6. The Company had not provided revenue share license fees and spectrum charges on certain items by not considering them in Gross Adjusted Revenue (AGR), as the matter in respect of such items is under review by relevant authority.  The ultimate outcome of the matter is currently indeterminable and consequently no provision for liability, if any, has been accounted for in this respect. 
7. As the Company was not listed as at 30 June 2007, the Company did not have any shareholders complaints.
8. The previous financial year audited figures have been regrouped / re-arranged wherever necessary to make them comparable. 
 On behalf of the Board of Directors 
Place: Noida  Sd/- 
Date: 27 July 2007  Dilip Modi 
 Chairman & Managing Director