MIRA INFORM REPORT

Report Date :

28.10.2006

IDENTIFICATION DETAILS

Name :	QUINNOX CONSULTANCY SERVICES LIMITED
Registered Office :	45 SDF II, Seepz Sez, Andheri [East], Mumbai – 400096, Maharashtra
Country :	India
Financials (as on) :	31.03.2004
Date of Incorporation :	18.01.1996
Com. Reg. No.:	11-96419
CIN No.: [Company Identification No.]	U72200MH1996PTC096419
TAN No.: [Tax Deduction & Collection Account No.]	MUMI02428G
PAN No.: [Permanent Account No.]	AAACI5721K
Legal Form :	Private Limited Liability Company.
Line of Business :	Provider of IT consulting and services to global clients.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Quinnox Multi – National Operations. Directors are reported as experienced and respectable businessmen. Their trade relations are fair. Profit margin is under severe pressure. Payments are usually correct and as per commitments. The company can be considered for small to mediocre business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	45 SDF II, Seepz Sez, Andheri [East], Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-28290100
Fax No.:	91-22-28291541
E-Mail :	rputhram@quinnox.com
Website :	http://www.quinnox.com
Offshore Development Centre :	Unit 170, SDF VI, Seepz, Andheri [West], Mumbai – 400096
Tel. No.:	91-22-28290100
Fax No.:	91-22-28291131

DIRECTORS

Name :	Mr. Noor Abdulkadar Baig
Designation :	Director
Address :	Flat 3, 2^nd Floor, Sumit Apartments, 31 – A, Carmichel Road, Cumballa Hill, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	06.11.1945
Date of Appointment :	18.11.1996
Name :	Ms. Shaila Noor Baig
Designation :	Director
Address :	Flat 3, 2^nd Floor, Sumit Apartments, 31 – A, Carmichel Road, Cumballa Hill, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	12.10.1948
Date of Appointment :	18.01.1996
Name :	Mr. Abdulkadar Mohd Mogul
Designation :	Director
Address :	139 T Juhutara Road, Santacruz West, Mumbai – 400054, Maharashtra, India
Date of Birth/Age :	07.06.1973
Date of Casing :	01.04.2000
Date of Appointment :	28.08.1997
Name :	Mr. Udai Mulmudi Kumar
Designation :	Director
Address :	968, Eddy Stone CR Neperville, IL 60565, USA – 60563
Date of Birth/Age :	17.04.1961
Date of Appointment :	17.03.2000
Name :	Mr. Jayant Mulmudi Jayaram
Designation :	Director
Address :	3950, Goodpasture Loop, Apartment L – 122, Eugene OR 97401, USA 400054
Date of Casing :	08.11.2002
Date of Appointment :	17.03.2000
Name :	Mr. Anil Dudarshan Kumar
Designation :	Director
Address :	1608 Frost Lane, Neperville, IL 60565, USA – 60563
Date of Birth/Age :	25.05.1960
Date of Appointment :	08.11.2002
Name :	Mr. Jai Shekhawat
Designation :	Director
Address :	20.03.1963
Date of Birth/Age :	3404 Lawrence Drive Neperville IL – 60564, USA 60563
Date of Appointment :	08.11.2002
Name :	Mr. Ravindra Subbanna Puthran
Designation :	Director
Address :	301, Raj Sarpvar Kanderpada, Dahisar West, Mumbai – 400068, Maharashtra, India
Date of Birth/Age :	09.10.1963
Date of Appointment :	05.06.2000

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Noor Abdulkadar Baig	4758000
Isthreec Private Limited	12250000
Ms. Shaila Noor Baig	35000
Mr. Satish Shaskar Jadhav	3500
Ms. Sonia Satish Jadhav	3500
Mr. Jeevan Prakash Gathoo	474300
Mr. Viren Anant Dhawadker	180000

BUSINESS DETAILS

Line of Business :	Provider of IT consulting and services to global clients.
Products :	Software

GENERAL INFORMATION

Customers :	Fortune 500 Citi HSBC UBS Smith Barney Citi Group Margan Stanley Honda Fortune 2000 NHBC Amway IBM Solectron Panasonic USG VF Corporation NEC MAYTAG Others Brass Ring School Specialty Delco Remy Gearworks Richmondevents Calypso Field glass
No. of Employees :	400
Bankers :	Union Bank of India Juhu Tara Road Branch, 27, Maneck Mahal, Juhu Tara Road, Santacruz - West Mumbai – 400049

Banking Relations :	Satisfactory
Auditors :	Deloltte Haskins and Sells Chartered Accountants 12, Dr. A B Road, Worli, Mumbai – 400018
Tel. No.:	91-22-56679000
Associates/Subsidiaries :	Ø Quinnox Inc. Ø Quinnox Consultancy Services [Mauritius] Private Limited Ø Quinnox Limited Ø Quinnox GmbH Ø Quinnox KK Ø Quinnox EURL
Holding Company :	IS3 Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs. 4/- each	Rs. 100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17704300	Equity Shares	Rs. 4/- each	Rs. 70.817 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		70.817	70.817
2] Share Application Money		6.300	0.000
3] Reserves & Surplus		37.807	185.563
4] (Accumulated Losses)		0.000	0.000
NETWORTH		114.924	256.380
LOAN FUNDS
1] Secured Loans		17.390	1.488
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		17.390	1.488
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		132.314	257.868
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26.342	21.764
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	83.005
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000
	Sundry Debtors	140.960	118.647
	Cash & Bank Balances	6.476	5.361
	Other Current Assets	0.000	0.000
	Loans & Advances	34.204	70.916
Total Current Assets		181.640	194.924
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	75.668	41.825
	Provisions
Total Current Liabilities		75.668	41.825
Net Current Assets		105.972	153.099
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		132.314	257.868

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2004	31.03.2003
Sales Turnover [including other income]	307.072	245.639
Profit/(Loss) Before Tax	[148.817]	[30.736]
Provision for Taxation	--	--
Profit/(Loss) After Tax	[148.817]	[30.736]
Export Value	281.758	223.718
Import Value	3.448	1.329
Total Expenditure	455.889	276.376

KEY RATIOS

PARTICULARS	31.03.2004	31.03.2003
Debt-Equity Ratio	0.05	0.01
Long Term Debt-Equity Ratio	0.05	0.01
Current Ratio	1.78	4.17
TURNOVER RATIOS
Fixed Assets	5.63	5.15
Inventory	0.00	0.00
Debtors	2.29	2.05
Interest Cover Ratio	[81.06]	[76.00]
Operating Profit Margin(%)	[45.82]	[9.49]
Profit Before Interest And Tax Margin(%)	[49.01]	[12.49]
Cash Profit Margin(%)	[46.42]	[9.66]
Adjusted Net Profit Margin(%)	[49.61]	[12.66]
Return On Capital Employed(%)	[76.03]	[11.79]
Return On Net Worth(%)	[80.95]	[12.02]

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

Ø Plant and Machinery

Ø Office Equipments

Ø Furniture and Fixture

Ø Vehicles

Ø Computer Software

Ø Leasehold Improvements

Company where control Exists : Quinnox Inc.

Quinnox is a leading provider of IT consulting and services to global clients. They devise solutions that fit the business requirements and deliver measurable business gains.  By leveraging the on-shore - offshore model, they provide speedy and affordable solutions that allow you to stretch the IT budgets. Managed by a team of professional drawn from globally reputed companies,  Quinnox has an outstanding track record of service delivery.

Quinnox offers a range of consulting and IT services that meet the requirements of enterprises seeking to balance the goals of leveraging existing IT investments while building for the future. Their services also address the need to build and maintain custom applications, as well as adopt best practices through packaged solutions.

Quinnox combines deep domain capability with technology excellence to deliver solutions that can help take the business to the next level. Their expertise in a wide range of technologies is complemented by their thorough understanding of select verticals.

And that's not all - they are extremely responsive and client focused and have forged long lasting   relationships with their clients.

Overview

Quinnox is a leading IT consulting company focused on providing business relevant solutions to its customers. They offer the entire range of enterprise IT services – package implementation, web enablement, application integration and application management to customers in the BFSI, Manufacturing and Retail verticals.

Headquartered in the US, Quinnox has a presence across four continents. They leverage the time-tested global delivery model to carry out IT consulting, development and implementation engagements for their global clients spread across 38 countries.   They have three delivery centers in India and have successfully executed several hundred engagements since inception.

Quinnox blends deep technical capabilities with a strong service orientation and process focus to offer a compelling value proposition to its clients.  Quinnox is a values-driven, high energy organization with a  fast growing team of top notch professionals.

Udai Kumar

CEO & Co-Chairman

Co-Chairman and CEO Udai Kumar brings about 20 years of IT industry and entrepreneurial experience. A co-founder of Quinnox, Udai has a deep understanding of the global delivery model and has successfully managed offshore engagements for a number of Fortune 1000 firms. Udai holds a Masters in Business Administration with specialization in Systems and Marketing from the Indian Institute of Management (IIM), Ahmedabad, India and a BS in Engineering from Benaras Hindu University, India.

Anil Kumar

President & Co-Chairman

President and Co-Chairman Anil Kumar is an accomplished professional with 20 years’ industry experience. Anil was instrumental in founding Fieldglass, a Chicago based IT company with an offshore based delivery model. Anil’s experience spans across delivery and HR. Anil holds a Masters in Personnel Mgmt & Industrial Relations from the Tata Institute of Social Services, Bombay, India and Bachelors in Economics.

Rangachari Desikan

Chief Financial Officer

Rangachari Desikan is the Chief Financial Officer (Global Operations) of Quinnox. Desikan has extensive experience of over 29 years in the finance and accounting functions. He has managed the finance function in organizations across the world. Prior to joining Quinnox, Desikan was the Chief Financial Officer and Board Member of Xerox Modicorp Limited.  Through his career, Desikan has played a key role in developing sound financial systems and improving shareholder valuation. Desikan has a Bachelor's degree in Electronics, an MBA from the Indian Institute of Management Ahmedabad and an advanced Diploma in Management from Delft University, Holland.

Amit Nagar

Chief Sales Officer & CEO Americas

Amit Nagar is the Chief Sales Officer and is responsible for the sales and marketing function at Quinnox. Prior to becoming a part of the Quinnox management team, Amit headed the global sales function of a $170M publicly traded offshore services firm. During his tenure, Amit was responsible for leading the sales and account strategies for offshore initiatives at major clients such as General Motors, Verizon, Humana, American Express and Ryder. Amit has an MS (Economics) from Birla Institute of Technology and Science, India. He also completed his Master of Management Studies (MMS) from this institute and later completed his MBA from the Kenan - Flagler Business School at the University of North Carolina at Chapel-Hill.

Ninan George

Director Global HCM

Ninan George holds an M.A degree in Personnel Management & Industrial Relations from TISS and a B'Com from Loyola College. He has over 15 years of experience including 7 years in I.T industry. He has worked with Eicher Goodearth Limited and Syntel Inc U.S.A. He has many achievements to his credit in recruiting and H.R functions. He has conceptualized and implemented creative ideas to attract and retain talent, integrate operations after a merger of companies and designing of training and career development programs.

Ashoke Dutt

President - Banking and Financial Services

Ashoke Dutt is the President of Quinnox's Banking and Financial Services practice. Ashoke has over 23 years of experience in the global financial services space including corporate and consumer banking. He was formerly the Executive Vice President, Marketing at Discover Financial Services, the largest independent credit card network in the US. Ashoke spent three years at Morgan Stanley as Executive Vice President, International before moving on to Discover Financial Services, the credit services business unit of Morgan Stanley. Prior to his stint at Morgan Stanley, Ashoke spent 20 years at Citibank, where he has held various senior positions in Europe, US and Asia. Ashoke holds an M.S in Industrial Engineering from the Northeastern University, Boston and a B.S in Chemical Engineering from Calcutta.

Differentiators

Quinnox combines  deep domain understanding, diverse technology capabilities and unmatched service orientation to offer its clients a compelling value proposition. The following attributes set us apart:

Business Depth

Quinnox has consciously chosen to focus on a few verticals - this has allowed us to build deep capabilities in the chosen domains. This allows us to effectively translate business ideas into technology enabled solutions in quick time.

"Fit for Purpose" Solutions

Their Solution Evolution Methodology built around Quinnox's core purpose of "Solving IT Together" enables us to deliver business relevant, collaborative, "no surprise" solutions to their clients.

Relationship Management

Complementing their technology and domain competence is their focus on client servicing. They are highly responsive and extremely sensitive to their clients needs. Each client engagement is overseen by a representative of their executive management and this has resulted in Quinnox being the partner of choice for all their clients.  Their focus on being everything to a few, rather than a little to a many has paved the way to many long standing relationships.

Their client relationship model is highly evolved and comprehensively covers engagement management and structure, governance, planning, performance management & reporting and best practices.

Talent Depth

The Quinnox team combines passion, intellect and integrity to surpass client expectations. Quinnoxites, who blend technical prowess with business understanding, are carefully nurtured in an environment that fosters practical innovation, independent thinking and continuous learning.

Quality and Process

Quinnox prides itself in its SEI-CMM Level 5, ISO 9001:2000 assessed processes and delivery mechanisms by constantly benchmarking and recalibrating its quality goals. They believe that delivering high quality solutions requires world class processes and that is reflected in their Quality Assurance Model.

Quinnox Quality Testimonials

ISO – 9001

SEI-CMM Level 5

Quinnox Methodology

Quinnox follows a well-defined project execution methodology. The Quinnox Organization's Standard Software Processes (OSSP), developed and maintained by a dedicated Software Engineering Process Group (SEPG), drives Quinnox's project execution methodology.

The OSSP defines the SDLC processes, Procedures, Manuals, Guidelines, Formats and Templates to be used by projects. In addition, the SEPG also maintains the Process Database of published results, artifacts of past projects, library of reusable components and training material. The Project Managers and the Software Engineering Team are well trained in the use of OSSP for their projects.

The Quinnox Methodology addresses various requirements from Project Acquisition, through Project Execution to Quality Assurance.

Individual project processes are derived from the OSSP and tailored to suit the specific client . The project processes could be derived for various types of projects namely: Software Development projects, Product Implementation projects, Migration projects, Customization projects, and Maintenance & Support projects.

Quinnox's project execution methodology is designed with the following objectives:

Ø Understand the client's requirements correctly and completely

Ø Design and develop the solution with the client's needs in mind

Ø Execute the project in close coordination with the client

Ø Ensure that all the deliverables are on-time and within budget

Ø Detect and fix defects at an early stage of the project

Ø Ensure all quality objectives of the project are met

Ø Provide adequate training to users, ensuring a high comfort level before transition

Ø Provide post-implementation support to ensure that the client takes charge of the system

A technically strong Software Quality Assurance (SQA) group involves through the project lifecycle - from the Proposal stage of a project through  closure of the project.

The SQA is responsible for the following:

Ø Review of proposals

Ø Facilitation in adhering to the OSSP, Estimation, Project Planning, Project tracking, Training

Ø Quality review of all plans and deliverables, Quality audits, Software testing, and Defect tracking

Ø Audit /assess adherence to project's defined processes

The Project Team and SQA use various tools such as Time Sheets, Issue Tracking and Defect Tracking Systems to ensure that the project is executed on time and within budget, and all quality objectives are met.

Dashboards are used in project tracking and enable timely course corrections. Quinnox follows a metrics based approach to project management. Typical metrics tracked include Effort & Schedule Variance, Defect Leakage, SLA adherence and Rework. The dashboards are published on a monthly basis; customers are given access to their respective project dashboards in the spirit of complete transparency.

Alliances

Ø e-Business Alliances

IBM

Bea

Broad Vision

Microsoft . net

Savvion

Ø ERP Alliances

Oracle

SAP

Ø EAI Alliances

IBM

Web Methods

CAST IRON

Ø Domain Specific Alliances

Calypso

Offerings

Quinnnox is focused on providing the entire range of IT services to global enterprises.  Their approach to fashioning solutions is based on two principles - "total business integration" and "fit for purpose".  Their solution delivery methodology is well honed and governed by rigorous processes.  Quinnox uses the global delivery model for engagement execution- this allows their clients to utilize their IT budgets more effectively.  

Their suite of offerings address the IT organizations need to extend the life of current portfolio while investing prudently for the future:

Ø E-business enablement

Ø Enterprise Application Integration Services

Ø Package led services

Ø Application Management Services

Industry

Quinnox helps clients exploit new market opportunities by harnessing  the power of technology to create solutions that have a significant business impact. They help clients successfully navigate through the constantly changing business and technology environment and attain leadership positions in their respective markets. They complement deep industry and technology skills and focus on business solutions with process frameworks and applications outsourcing capabilities. As a strategy, therefore, they focus on select verticals that they understand best, and, at this time, they are committed to honing their expertise and delivering industry strength solutions in the following verticals:

Ø Banking & Financial Services

Ø Retail & Manufacturing

As a part of their growth strategy, they have identified other verticals where they are building capabilities. These include:

Ø Healthcare

Ø Pharmaceutical

Ø Insurance

Ø Telecommunications

Manufacturing Overview

As the manufacturing industry strives to reduce time-to-market, contain costs, maintain quality and retain customers in an increasingly competitive world, Information Technology can play a key role in helping companies in this industry attain these objectives. IT can help companies get a better perspective of their processes, take informed decisions and grow business.

Greater customer expectations and increasing price pressures have compelled manufacturing companies to deploy IT to streamline operations and collaborate with suppliers to reduce costs. Manufacturing companies are increasingly focusing on solutions that improve their return on assets, minimize operating costs, optimize capacity, and promote operational excellence.

Quinnox has partnered with many leading manufacturing organizations and provided IT solutions in the areas of procurement, production management, shop floor control, sales, customer management, supply chain management and logistics.

Quinnox's offerings for the manufacturing industry include:

Ø Application management

Ø Package implementation covering ERP, SCM and CRM solutions

Ø Custom application development

Ø Application migration

Banking and Financial Services Overview

The Banking & Financial Services (BFS) vertical is going through numerous changes- regulatory changes and globalization have reduced market barriers and forced existing players to redefine their business models and market strategies.  Moreover, with the internet combined with revolutionary changes in communication technology, have also altered the rules of the game in the financial services industry. An important consequence of this is a number of new entrants in the market place. Supermarket chains, software houses and mobile phone companies are among those that compete with banks to provide mortgages, loans, and payment mechanisms.

The online distribution paradigm has led to some commoditization and disintermediation of the financial services industry.  The BFS industry has responded to the market environment with two broad strategies- diversification and consolidation.   With commoditization and strained profitability in traditional banking products, banks will look to partner  their customers' lifecycle and behavioral discussions to differentiate their product  offerings and maximize revenues.

Quinnox believes that banks and financial services companies will have to redefine their strategies, processes and offerings in order to remain competitive. They must use technology as a lever in enabling this transformation.

Banking and financial services practice is one of the fastest growing practices at Quinnox. This is fueled by banks and financial institutions increasingly adopting multi-product and multi geographic strategies, conversions and upgrades from legacy platforms to more modern technology options to gain competitive edge, and  retail companies moving into the financial services value chain.

Quinnox is strongly positioned to partner these banks and financial institution in their efforts. They have established an excellent track record in strategic implementation partnerships with existing customers in investment banking and  are aggressively moving into corporate and retail banking /lending domains.

Quinnox is focused on deepening relationships through flexibility and customized attention to respond to customers needs and strong domain value addition to customer's business process and strategies. Their offerings address the need of banks to leverage existing IT investments and building for the future simultaneously. 

Very senior people having banking experiences lead Quinnox’s BFS vertical.

Retail Overview

The retail industry has witnessed considerable transformation over the last few years. The peaks and troughs in the economy, emergence of the changing dynamics of consumerism, the Internet as a business enabler and distribution channel; all these have replaced the traditional business models, giving way to new dimensions of retailing. Threat of competition, pressure to exceed customer expectations and high operational costs are forcing business leaders and CIOs to find innovative ways to increase customer value at optimal costs.

In order to thrive in such an environment, retailers need to successfully cater to the needs of a culturally and demographically diverse population, whilst creating a differentiated value proposition. The speed at which this value proposition is delivered and the cost to do so will separate the winners from the losers.

Quinnox leverages its extensive experience across retail functions to offer customers best- of -breed services in the retail area. The company together with its partners brings in a rich understanding of merchandizing operation dynamics, customer loyalty and supply chain efficiency. With proprietary methodologies and internationally accredited SEI-CMM level 5 and ISO certified processes, Quinnox provides quality management and technology consulting services to strategize, define and deliver integrated retail solutions. They recognize the challenges faced by Retailers in getting closer to their customers while improving operational processes.

IT is no longer a support function for the business but is a business enabler. Their offerings in the business and technology areas enable you optimize the IT spend by leveraging the power of the legacy systems, while scaling up to meet the challenges of the new business models.

They realize that the backend systems are critical and they can assist you in managing the Legacy systems in a cost effective manner and help you extend or transform these systems to support new channels and technologies.

Their knowledge and expertise in harnessing the power of the Web for e-business realization makes a crucial difference to their solutions / strategic offering to the business.

Success Stories

Since inception, Quinnox has endeavored to provide to its clients the best technology solutions and services that solve their business problems. In the process, they have grown along with their clients as well as grown their client base.

Quinnox believes in growing through long-term relationships; in keeping with this view they have established long-term associations with all their clients. Their clients are big names in their respective industries and have been delighted with their service over the years. They have also been able to provide these clients with flexibility, speed and high quality in every sphere of service.

A brief look at their success stories will reveal the depth of their technical expertise, their industries know how and the global coverage. Importantly, they are able to provide all this without compromising on Quality and Speed.

Except for the Antarctic, a Quinnox solution makes its presence felt in every continent on the globe, from 10 international offices and 3 world-class Global Solution Centers.

Quinnox Inc.

Headquarters

NaperVille, USA

2056 Westings Avenue, Suite 190, Naperville, IL - 60563
Tel: 1-630 548 4800;

Fax: 1-630 548 4500

Quinnox Limited

London, UK

Corporate Office - Boundary House, Boston Road, Hanwell, W7 2QE
Tel: 44-0-20 8434 3505

Fax: 44-0-20 8434 3739
Registered Office - Walmar House, 288-292 Regent Street, London W1R 5HF

Quinnox EURL

Ferney Voltaire, France

13 Chemin de Levant 01210
Tel: 33-450-407 576

Fax: 33-450-409 885

Quinnox GmbH

Frankfurt, Germany

Paul Ehrlich Strasse, 37-39 60596, Frankfurt Am Main
Tel: 49-171-7986647 / 4239208

Fax: 49-69-630 090 90

Quinnox Consultancy Services Limited

Mumbai, India

Unit 170, SDF VI, SEEPZ, Andheri (East), Mumbai 400 096
Tel: 91-22-2829 0100

Fax: 91-22-2829 1131

Pune, India

Nyati Millenium, C-1 Building, Survey No. 209, Viman Nagar, Pune 411 014
Tel: 91-20-56090100

Bangalore, India

4th floor, Tapasivi Arcade, Hosur Road, Silk Board Junction, Bangalore 560 076
Tel: 91-80-51255200

Fax: 91-80-51255299

Quinnox K. K.

Tokyo, Japan

6F, Nakamura Building, 2-7-14 Shibuya, Shibuya-ku, Tokyo 150-0002
Tel:81-3 5464 5808

Fax: 81-3 5464 5818

Quinnox Chile

Quinnox Agencia En Asesorias, programacion de Sistemas informaticos. PDTE

Juan Antonio Rios 58 PISO 6 Santiago Chile
Tel: 6389048

Fax: 6389056

Name of the company	QUINNOX CONSULTANCY SERVICES LIMITED
Presented By	Union Bank of India, Juhu Tara Road Branch, Mumbai
1) Date and description of instrument creating the change	Packing credit agreement [SD-04] Dated 16^th March 2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 4.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The borrower hypothecates and creates in favour of the bank by way of first charge all those movable properties of the borrower meant or intended for export such as developed software, in process, related items etc.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest at the rate of 6.5 % p.a. for the Packing credit limit of Rs. 4.000 millions granted by the Bank to the company.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India, Juhu Tara Road Branch, 27, Maneck Mahal, Juhu Tara Road, Santacruz - West Mumbai – 400049
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA
Name of the company	QUINNOX CONSULTANCY SERVICES LIMITED
Presented By	Union Bank of India, Juhu Tara Road Branch, Mumbai
1) Date and description of instrument creating the change	Dated 05.12.2003 Letter of Hypothecation Hypothecation agreement of Goods and Debts [SD - 06] Both the documents constitute a single charge.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 10.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Purchase form or negotiate a bill or bills of exchange drown or accepted or endorsed against goods and or merchandise or shopping or documents for collection on the borrower account under lien to the bank. Hypothecation of all receivables / debtors existing and future including local and foreign which are now due and owing or which may at any time hereafter during the owing to the borrower in the course of its business.
4) Gist of the terms and conditions and extent and operation of the charge.	Nature of Limit : AFDBC / FUDBP Amount of limit : Rs. 10.000 millions Rate pf Interest : 7.5 %
5) Name and Address and description of the person entitled to the charge.	Union Bank of India, Juhu Tara Road Branch, 27, Maneck Mahal, Juhu Tara Road, Santacruz - West Mumbai – 400049
6) Date and brief description of instrument modifying the charge	Letter of hypothecation Dated 16.03.2004
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge dated 05.12.2003 for Rs. 10.000 millions is hereby modified by granting an additional sum of Rs. 4.000 millions thereby enhancing AFDBC / FUDBP limit form Rs. 10.000 millions to Rs. 14.000 millions against negotiation of a bill or bills of exchange drown or accepted or endorsed against goods and hold such or any other bill or bills of exchange and documents for collection on the borrowers account under lien to the Bank. Rate of interest : 7 % upto 90 days.
Name of the company	QUINNOX CONSULTANCY SERVICES LIMITED
Presented By	Union Bank of India, Juhu Tara Road Branch, Mumbai
1) Date and description of instrument creating the change	12.09.2005 General Term Loan Agreement [SD - 18] Term Loan agreement [SD - 19] Both the documents constitute a single charge.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 53.002 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The borrower hypothecates and creates in favour of the bank by way of first charge all those movable properties of the borrower meant or intended for export such as developed software, in process, related items etc. All the tangible movable machinery and plant of the borrower together with spares, tools and accessories and other movables, both present and future, whether lying loose or in cases which are now lying or stored in or upon or about the borrowers premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the borrower relating to or pertaining to the borrowers works at Pune, Mumbai and Bangalore
4) Gist of the terms and conditions and extent and operation of the charge.	Term loan amount : Rs. 53.002 millions Repayment of instalments : commencing from October, 2006-11-07 Amount of Instalments Rs. 1.262 millions Interest Tenure : 24 Interest 14.75 % p.a. with monthly rests
5) Name and Address and description of the person entitled to the charge.	Union Bank of India, Juhu Tara Road Branch, 27, Maneck Mahal, Juhu Tara Road, Santacruz - West Mumbai – 400049
6) Date and brief description of instrument modifying the charge	Memorandum for deposit of title deeds on 07.10.2005
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge dated 12.09.2005 for Rs. 53.002 millions has been modified by the creation of Equitable Mortgage by deposit title deeds with the bank of company immovable properties commercial premises bearing non. 101 & 102 and 201 & 202 admeasuring1156.5 sq. ft and 1112.9 sq. mtrs. On the first and second floor respectively in C – 1wing of building known as Nyati Millenium situated at Viman Nagar, Pune, Maharashtra, along with furniture, Fixture, fixture generators and parking spaces, constructed on land bearing Survey No. 209/2, Village Lohegaon, Taluka Haveli, Pune as security for the due repayment. To the bank of all amount advanced or to be advanced, granted or to be granted by the Bank to the company being term loan of Rs. 53.002 millions together with interest, compound interest and or additional interest in case of default exchange fluctuations, cost charges, expenses etc, and also for the facility that may be granted from time to time.
Name of the company	QUINNOX CONSULTANCY SERVICES LIMITED
Presented By	Union Bank of India, Juhu Tara Road Branch, Mumbai
1) Date and description of instrument creating the change	12.09.2005 General Term Loan Agreement [SD - 18] Term Loan agreement [SD - 19] Both the documents constitute a single charge.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 53.002 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The borrower hypothecates and creates in favour of the bank by way of first charge all those movable properties of the borrower meant or intended for export such as developed software, in process, related items etc. All the tangible movable machinery and plant of the borrower together with spares, tools and accessories and other movables, both present and future, whether lying loose or in cases which are now lying or stored in or upon or about the borrowers premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the borrower relating to or pertaining to the borrowers works at Pune, Mumbai and Bangalore
4) Gist of the terms and conditions and extent and operation of the charge.	Term loan amount : Rs. 53.002 millions Repayment of instalments : commencing from October, 2006-11-07 Amount of Instalments Rs. 1.262 millions Interest Tenure : 24 Interest 14.75 % p.a. with monthly rests
5) Name and Address and description of the person entitled to the charge.	Union Bank of India, Juhu Tara Road Branch, 27, Maneck Mahal, Juhu Tara Road, Santacruz - West Mumbai – 400049
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA
Name of the company	QUINNOX CONSULTANCY SERVICES LIMITED
Presented By	Union Bank of India, Juhu Tara Road Branch, Mumbai
1) Date and description of instrument creating the change	Dated 05.12.2003 Letter of Hypothecation Hypothecation agreement of Goods and Debts [SD - 06] Both the documents constitute a single charge.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 10.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Purchase form or negotiate a bill or bills of exchange drown or accepted or endorsed against goods and or merchandise or shopping or documents for collection on the borrower account under lien to the bank. Hypothecation of all receivables / debtors existing and future including local and foreign which are now due and owing or which may at any time hereafter during the owing to the borrower in the course of its business.
4) Gist of the terms and conditions and extent and operation of the charge.	Nature of Limit : AFDBC / FUDBP Amount of limit : Rs. 10.000 millions Rate pf Interest : 7.5 %
5) Name and Address and description of the person entitled to the charge.	Union Bank of India, Juhu Tara Road Branch, 27, Maneck Mahal, Juhu Tara Road, Santacruz - West Mumbai – 400049
6) Date and brief description of instrument modifying the charge	Letter of hypothecation Hypothecation agreement of goods and debts Both the documents constitute a single modification of the original charges.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge dated 05.12.2003 for Rs. 10.000 millions is hereby modified by granting an additional sum of Rs. 4.000 millions thereby enhancing AFDBC / FUDBP limit form Rs. 10.000 millions to Rs. 14.000 millions against negotiation of a bill or bills of exchange drown or accepted or endorsed against goods and hold such or any other bill or bills of exchange and documents for collection on the borrowers account under lien to the Bank. Vide this modification an additional sum of Rs. 20.000 millions has been granted by the Bank, thereby enhancing AFDBC / FUDBP limit form Rs. 14.000 millions to Rs. 34.000 millions against negotiation of a bill or bills of exchange drown or accepted or endorsed against Negotiation of bill or bills of exchange drown or accepting or endorsed against goods and or merchandise or shipping or other documents and hold such or any other bill or bills or exchange and documents for collection on the borrowers account under lien to the bank. Hypothecation of all receivables / debtors etc existing and future including local and foreign which are now due and owing or which may at any time hereafter during the continuance of this security becoming due and owing to the borrower in the course of its business. Interest at the rate of 7.5 % p.a. with monthly rests.

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.44.86
UK Pound	1	Rs.85.24
Euro	1	Rs.56.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		37

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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