MIRA INFORM REPORT

Report Date :

31^st May, 2006.

IDENTIFICATION DETAILS

Name :	MICROMAX INFORMATICS LIMITED
Registered Office :	1/6, Lower Group Floor, East Patel Nagar, New Delhi – 110 008, India.
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	29.03.2000
Com. Reg. No.:	55-104823
CIN No.: [Company Identification No.]	U00000DL2000PLC104823
TAN No.: [Tax Deduction & Collection Account No.]	DELM06369G DELM06012G
PAN No.: [Permanent Account No.]	AABCR8863N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The company is engaged in the business of Computer Education, Software & Hardware Development, Telecom Equipments Trading.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	1/6, Lower Group Floor, East Patel Nagar, New Delhi – 110 008, India.
Tel. No.:	91-11-55495399
Fax No.:	91-11-51698398
E-Mail :	info@micromaxinfo.com

DIRECTORS

Name :	Mr. Vikash Jain
Designation :	Director
Address :	B – 118, 2^nd Floor, Paschim Vihar, Delhi
Date of Birth/Age :	01.08.1974
Date of Appointment :	29.03.2000
Name :	Mr. Rahul Sharma
Designation :	Director
Address :	H. N – 559, Sector – 16A, Faridabad, Haryana
Date of Birth/Age :	01.01.1974
Date of Appointment :	29.03.2000
Name :	Mr. Rajesh Agarwal
Designation :	Director
Address :	B-312, Saraswati Vihar, Delhi
Date of Birth/Age :	22.02.1965
Date of Appointment :	10.08.2004
Name :	Mr. Sumeet Arora
Designation :	Director
Address :	A-1/20, Sector – B,Rohini, Delhi
Date of Birth/Age :	12.01.1974
Date of Appointment :	29.03.2000
Name :	Mr. Sarvesh Gupta
Designation :	Director
Address :	C-23, Lohia Nagar, Ghazibad, Uttar Pradesh
Date of Birth/Age :	08.11.1974
Date of Appointment :	01.04.2002
Name :	Mr. Hitesh Arora
Designation :	Director
Address :	6/85, West Punjabi Bagh, Delhi
Date of Birth/Age :	07.07.1974
Date of Appointment :	01.04.2002
Name :	Mr. Vikash Shani
Designation :	Director
Address :	141, Sector – 12, R. K. Puram, Delhi – 22
Date of Birth/Age :	22.08.1974
Date of Appointment :	01.04.2002

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Vikash Jain	55360
Rahul Sharma	35650
Micromax Technologies	43500
Sumeet Arora	33740
Yash Bhatia	10
Raghav Bansal	10
Vipul Jain	10
Manju Arora	10

BUSINESS DETAILS

Line of Business :

The company is engaged in the business of Computer Education, Software & Hardware Development, Telecom Equipments Trading.

GENERAL INFORMATION

Suppliers :

v Alchenist Consulting Private Limited

v DTDC Courier & Cargo Limited

v GK Gupta Water Supplier

v Harpreet Ford

v Hi-Tech Communications (India)

v Infotech Micro.

v Nokia India Private Limited

v Radil

v Spectra Net Limited

v Vidur & Company Private Limited

Customers :

v Airport Authority of India

v A.M. Mobile Telecom Private Limited

v Autometer Alliance Limited

v Benz India Private Limited

v Bharti Comtel Limited

v Cellnett

v Digilogic Infosystems Private Limited

v DOD

v Grace Telesystems

v Gujarat Council of Science City

v Hutchison Essar Telecom Limited

v Hutchison Max Telecom Private Limited

v Micromax Technologies Private Limited

v Spice Communication Private Limited

v UP Jal Nigam

v Zerobase Electronics Private Limited

No. of Employees :

25

Bankers :

v ICICI Bank (Delhi)

v ICICI Bank (Mumbai)

v ING Vysya Bank

v Standard Charted Bank

v Vijaya Bank

v PNB

v ICICI Bank (Kolkata)

v ICICI Bank (South Ext.)

Facilities :

Secured Loan	Amount (in Millions)
Bank Overdraft	4.760
Unsecured Loan
SFS Infinity Limited	1.000
TOTAL:	5.760

Banking Relations :	--
Auditors :	Sandeep Kuldeep & Company
Qualification:	Charted Accountant

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs. 10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
168290	Equity Shares	Rs. 10/- each	Rs. 1.682 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		1.682	1.682
2] Share Application Money		0.700	0.700
3] Reserves & Surplus		0.436	0.468
4] (Accumulated Losses)		0.000	0.000
NETWORTH		2.818	2.850
LOAN FUNDS
1] Secured Loans		4.760	0.000
2] Unsecured Loans		1.000	1.143
TOTAL BORROWING		5.760	1.143
DEFERRED TAX LIABILITIES		0.076	0.119
TOTAL		8.654	4.112
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.420	1.761
Capital work-in-progress		0.000	0.000
INVESTMENT		0.050	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000
	Sundry Debtors	0.000	0.000
	Cash & Bank Balances	0.147	0.982
	Other Current Assets	8.532	2.979
	Loans & Advances	0.000	0.000
Total Current Assets		8.679	3.961
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1.495	1.610
	Provisions	0.000	0.000
Total Current Liabilities		1.495	1.610
Net Current Assets		7.184	2.351
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		8.654	4.112

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	98.061	13.130
Profit/(Loss) Before Tax	0.216	0.168
Provision for Taxation	0.222	0.133
Profit/(Loss) After Tax	(0.006)	0.035
Total Expenditure	97.844	12.961

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004
PAT / Total Income	(%)	(0.01)	0.27
Net Profit Margin (PBT/Sales)	(%)	0.22	1.28
Return on Total Assets (PBT/Total Assets}	(%)	2.14	2.94
Return on Investment (ROI) (PBT/Networth)		0.08	0.06
Debt Equity Ratio (Total Liability/Networth)		2.57	0.97
Current Ratio (Current Asset/Current Liability)		5.81	2.46

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets:

Air Conditioners, Car, Computers, Data Projector, Electric equipment, Fax Machine, Furniture & Fixture, Generator, Plant & Machinery etc.

AS PER WEBSITE:

ABOUT US
Serving both service provider and enterprise customers Micromax delivers innovative technology solutions specializing in Fixed wireless services and applications, and wireless broadband designed to help people solve the world's greatest challenges.

Micromax is a leader in the cellular fixed wireless telecommunications industry in india, designs, develops and manufactures products that enable a standard telephone, fax, computer modem or security alarm system to operate wirelessly over the cellular network for either primary or back-up communications.

They are a technology driven company, offering comprehensive services catering to existing and emerging vertical business segments, with an emphasis on developing expertise in higher value added software solution & services.

They have successfully implemented projects in various industry segments and have a wealth of experience & expertise in Fixed cellular & GSM connectivity business.

AIRPORTS AUTHORITY OF INDIA GOES DIGITAL IN AIR TERMINAL INFORMATION BROADCAST

Micromax equipped yet another niche solution Digital Airport Terminal Information System (DATIS) for their client Airports Authority of India in the financial year of 2002-03.

DATIS is a communication product powered by the Embedded Design Labs of Micromax and is the automated voice information broadcast of ATIS containing current weather, airport and facility conditions. Its major benefit is the access to this airport information at any time via data link and for both pilots to maintain voice contact with ATC, while reducing errors from copying the information. DATIS is used to relay airfield related information to the aircraft on a fixed VHF Channel.

The pilot project has been successfully carried out at the Lucknow and Delhi airports and the system has found tremendous acceptance with the Air Traffic Controllers and Pilots in particular and ground staff in general. Additional feature of the product is it's interfacing to an answering machine wherein the ground staff is able to monitor the current DATIS broadcast over a telephone.

To listen to DATIS broadcast running at Delhi airport call (91.11)-25653081

BARISTA GROWS SMARTER

"Trust Barista to do things with panache,

Be it for being pioneers in launching Smart card based Loyalty programme or getting the chip side on the reverse of the card layout, Barista is different", says Vikas Jain, Country Manager at Micromax. "Working with Barista has always been a desire, their professional ethics, dealing with the vendor, everything has been so perfect, that it never felt like working for a client, it was more of a self-project".

Barista launched their Smart card campaign in Bangalore in the month of April'03. Started with a test market of Bangalore, the programme has given immense confidence to the management that plans are already midway in getting the programme national. "More cities are in pipeline, so better watch out", cautioned Basav Mukherjee, Head Sales, Barista Coffee Company Ltd. The programme has been a virtual sell out and they are very excited about the same. The membership to the programme is on a non-chargeable basis and immediate dividends are provided to the enrolled members by extending the length of the rupee for them. Members tend to get upto 20% more shopping power for becoming members to the programme. The programme is different in the sense that the card is provided to the enrolling member across the counter, "a hassle free experience is what they have tried to provide their customers with", commented Mr. Mukherjee. Recharge entitles the members to additional benefits, over and above the enrolling ones.

Smart cards have always been on the shopping basket of corporate world looking to launch loyalty programmes because of their non-dependence on connectivity issues. They have proved to be major hit with companies overseas and with the government of India taking keen interest in Smart Card based National ID programme, the confidence level was much higher for implementing the same in India too. Fewer corporate have though dared to take the lead and set an example for Smart implementations but whoever have dared have got a sounding pat on their back for the results they have obtained.


MICROMAX LAUNCHES FIRST EVER PROGRAM ON WIRELESS IN INDIA.

In yet another trail blazing style Micromax did it again. Micromax Informatics would now be launching cutting edge programs in Wireless Communications in India. The Wireless program is a blend of Micromax expertise and immaculate teaching techniques. The program is designed to benefit those who wish to seek Hi-End specialized qualification in Wireless domin at the helm of affairs.

These programs are designed for current engineers to upgrade their skills in preparation for moving into a new area of emphasis. These are some of the hottest jobs in the Wireless engineering world. Micromax can take you where you want to go.

The program is made in consultation with bigwigs of the wireless industry & helps you master various cross platform wireless technologies along with a focus on incorporating the required skill and experience.

They would like to stress here that these programs are being launched to inculcate the cutting edge technologies in India and to provide exposure to the candidates besides bringing in academic excellence' said Rahul Sharma, C.O.O Micromax. So whether you dream of a Rocket Propeller or making a 3G network, this program would shape you up as a global Wireless application professional who has success well embedded in his career. This has been made possible by Micromax Informatics Ltd, who promise to promote the latest and cutting edge technology in Indian markets.

Founded a decade back in 1991, the main office is located in New Delhi. The company is into IT training, Software development, Consulting, having annual turn over of Rs700 million.

SEC is focused on imparting training on domains like Embedded & Telecom, which is worth trillion dollars today and will continue to grow at a exponential rate. The centre would act as a one stop shop for technology up gradation, project ready manpower and various R&D services in the areas of Wireless & Embedded Systems.

MMX EQUIPS AIRPORT AUTHORITY WITH THEIR IVRS SOLUTION

Organisations like Civil Aviation Department, Fire Management Department face the prospect of handling emergency situations, which might demand a cool-headed problem solving approach seldom found wanting at alarming situations like a plane hijack or any similar contingency. .

Micromax has developed the Emergency Communication Dispatcher (ECD®) to handle contingency information disbursal. This first computerized information management software for personal computers helps corporations and governments respond to unexpected events and emergency incidents. Developed in late 2001, the software has quickly emerged as the de facto standard for state and local government emergency management (specially in Aviation industry), and now is being used by different aviation corporations in India.

ECD® brings analytical tools and data sources, educational materials and training, emergency management procedures, real-time event data, from around the organization to the desktop. It handles the emergency like nobody else does. It automates the process to reach out to the concerned, relay the complete emergency as well as carry back with itself the comments of the contacted, all in as low as 1 minute 20 seconds. That means that in one hour you can touch about 90 people with a twin-connectivity license and about 180 people with a four-connectivity license. It not only helps you in smooth conduction of the emergency fighting exercise, it allows you to THINK during the emergency, a trait acknowledged by all leading psychology experts to be essential during emergency handling

MICROMAX INFORMATICS LTD. POWERS SMART SOLUTIONS

SMART IS IN!! MIL, the software arm of Micromax has launched their technology initiative to deal with the smarter aspects of life. L-Max, S-Max, MaxSmart Lifeline, MaxSmart Speed, MaxSmart Personnel, MaxSmart Campus, MaxSmart NetCAfe are some of the solutions aimed at enhancing the pleasures of life. "Technology must be used to drive convenience in their lifestyles", is the working motto for the technical managers managing the division.

With applications like loyalty, e-purse, identity and access control, MIL is ready to address to retail, manufacturing, travel and hospitality with its CRM Solutions. The solutions are aimed to provide the much-needed peep into consumer behavioral practices and to study consumer-spending pattern.

The company is also focusing on the recently opened Insurance and healthcare sectors with its solution, which would provide hassle free, and cash free settlement to the consumers.

MIL's R&D has successfully developed indigenous Hand held Smart Cards Terminals apt for all type of applications. The tremendous cost advantage given to the client has ensured that the terminals have not gone un-noticed and have already made an impression in the highly competitive market. The terminals are designed to showcase all possible functionalities; vis-à-vis data transfer through PSTN network and also a detachable printer. The same have found wide-acceptance in untapped segments like Micro-Finance, Toll Collection, etc.


MICROMAX DELIVERS AGAIN !!!!

Come September and MIL shall be handing over yet another project to the Indian government. "Though the client gave us a time of 10 weeks, the techy guys were able to achieve the milestone in just 8 weeks and that too to the complete satisfaction of the client" said Sunil Joon, Project Manager at Micromax.

National Productivity Council of India and Micromax laboured together towards realization of the efforts of NPC to initialise an online Waste Minimisation Circle for its different facilitators and subscribers. These members are spread all across the nation and to get them together there could not have been a better solution that an online platform, suggested NPC.

Micromax was instrumental in providing a robust architecture to NPC in which they have the option to interact with their facilitators, portraying their achievements, online education for members(e-learning solution), comprehensive and latest e-enabled training manuals available for downloads. The application provides an excellent interactive platform for like minded facilitators to discuss and probe their thoughts and ideas through the Discussion Forum whereas the query section helps in getting answers to the queries realted to WMC activities.

The aplication promises true scalability and the option of regular updates is handled through user friendly forms designed keeping in mind the strength of the client. An earnest attempt has been made to replicate the forms in use, so much so that updation can now be easily handled by the client himself, though MIL has got the contract for the Annual Maintenance too but it is always easier to educate the client to self-understand the updations, remarked Sunil.

After implementing this solution they envisage immense interest in the facilitators towards WMC, infact the product received tremendous accolades when launched in the presence of the facilitators, remarked a top ranking official at NPC.
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http://wmc.nic.in

NETWORKING OF YAMUNA ACTION PLAN TOWNS THROUGH INTERNET APPLICATION


Micromax began its relationship with Yamuna Action Plan (YAP) project in September'2001 by taking on the ominous task of providing an online project management system for Project Scheduling, Investment and Monitoring. Managing ongoing project investments in addition to tracking expected revenue was crucial to the YAP consultants TEC-DCL; as was the scheduling and controlling activities, which were not centrally focused to achieve the best possible implementation results.

In spite of non-standardized reporting system, involvement of diversified agencies as Implementers and too many project associates; Micromax technical managers confidently came across with a project management approach to bolster the bottom line.

Micromax came up with a Project Management solution providing TEC-DCL with effective strategies and mechanisms for tracking estimated capital costs and consumable budgets and time-phase across the life of the projects being implemented under various schemes of Yamuna Action Plan. In short this was one online project management solution, which was being sought by TEC-DCL. "They have been extremely satisfied by the intent of involvement from Micromax towards providing us the right solution" says Dr Lalit Aggarwal, Resident Representative, TEC-DCL.

"It was challenging working on a government assignment that involved multiple Implementers spread across complete North India and they are glad that as promised they were able to achieve total customer satisfaction" remarked Sunil Joon, Project Manager, Micromax. As expected the solution promises quality and has been on time, on budget and with the promised functionalities.

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 records 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.46.43
UK Pound	1	Rs.87.43
Euro	1	Rs.59.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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