MIRA INFORM REPORT

Report Date :

10.04.2007

IDENTIFICATION DETAILS

Name :	SPECTRUM INFOTECH PRIVATE LIMITED
Registered Office :	L and T House, 38, Cubbon Road, Bangalore – 560001, Karnataka
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	23.06.1995
Com. Reg. No.:	08-18112
CIN No.: [Company Identification No.]	U72200KA1995PTC018112
TAN No.: [Tax Deduction & Collection Account No.]	CALS12643B
PAN No.: [Permanent Account No.]	AADCS9426Q
Legal Form :	Private Limited Liability Company.
Line of Business :	Development and Research in different Software Packages

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 :	USD 90000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. 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 :	L and T House, 38, Cubbon Road, Bangalore – 560001, Karnataka, India
E-Mail :	spektrum@vsnl.com
Website :	http://www.spectruminfotech.com
Administration Office / R & D Centre:	# 5, Victoria Road, Bangalore - 560 047, Karnataka, India
Tel. No.:	91-80-25306039 / 25551739 / 25551740 / 25551741 / 25546495
Fax No.:	91-80-25546433
E-Mail :	spektrum@vsnl.com
Area :	5000 sq. ft.
Location :	Leased

DIRECTORS

Name :	Capt. Subba Prabhala Rao
Designation :	Chairman and Managing Director
Address :	37, Haudin Road, Bangalore – 560042, Karnataka, India
Date of Birth/Age :	25.07.1933
Date of Appointment :	12.08.2003
Name :	Mr. James Immanuel Devadatta
Designation :	Whole Time Director
Address :	12, 4^th B Block, Koramangala, Bangalore – 560034, Karnataka, India
Date of Birth/Age :	08.02.1935
Date of Appointment :	20.09.2005
Name :	Prof. Arogyaswamy J. Paulraj
Designation :	Director
Address :	Durand 133, Stanford, California – 094305, USA
Date of Birth/Age :	14.04.1944
Date of Appointment :	20.09.2005
Name :	Dr. A Chokkalingam
Designation :	Director
Address :	Dept of Eelectical Communicaiton Engineering IISC, Bangalore – 560012, Karnataka, India
Date of Birth/Age :	10.03.1962
Date of Appointment :	16.07.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Subba Prabhala Rao	20550
James Immanuel Devadatta	15000
Menon Chitlancher Karunakaran	40500
Venkatesh K	40500
M Rajantri	40500
Desai Rudrappa Samaata	6500
Paulraj Arogyaswamy	60000
Kailash Thomas K	15000
Prabhala Amba	30000
A. A. Tarakeshwar	4500
Shubha Kumari	4500
Nair V. Velappan	1500
Prabhala Rajyalakshmi	100000
Prabhala Achal	10000
Devadatta Doris	25500
Gowda B. H. Veerabhadre	1000
Singh A. Sadananda	900
Padmavathi N.	1500
M. S. Badrinarayanan	1500
A. Kannian	1000
CDR Pradeep Kar	10000

Names of Shareholders	Percentage of Holding
Directors and their Associates	100.00 %

BUSINESS DETAILS

Line of Business :	Development and Research in different Software Packages
Exports :
Countries :	USA
Imports :
Countries :	USA

GENERAL INFORMATION

Customers :	G O I Defence Laboratories
No. of Employees :	50
Bankers :	Ø State Bank of India, Seshadripuram, Bangalore Ø HDFC Bank Limited, Bangalore Ø ICICI Bank Limited, Bangalore Ø Kothak Mahindra Limited, Bangalore Ø Canara Bank, Malleswaram Branch, Bangalore – 560003

Banking Relations :	Satisfactory
Auditors :
Name :	EESH and Company Chartered Accountants
Address :	666, 5^TH Main, Hanumanthnagar, Bangalore – 560019, Karnataka, India
Holding Company :	Larsen & Toubro Limited CIN No. : L99999MH1946PLC004768

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
600,000	Equity Shares	Rs. 10/- each	Rs. 6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
440,000	Equity Shares	Rs. 10/- each	Rs. 4.400 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		4.400	4.363	4.273
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		18.685	18.261	16.645
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		23.085	22.624	20.918
LOAN FUNDS
1] Secured Loans		0.075	0.362	0.680
2] Unsecured Loans		5.100	1.100	2.300
TOTAL BORROWING		5.175	1.462	2.980
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		28.260	24.086	23.898
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.200	3.050	3.371
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.119
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.299	30.265	28.453
	Sundry Debtors	12.570	8.167	2.405
	Cash & Bank Balances	7.374	10.183	6.298
	Other Current Assets	0.005	0.000	0.323
	Loans & Advances	3.697	4.087	2.562
Total Current Assets		34.945	52.702	40.041
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	5.250	30.805	19.639
	Provisions	3.635	0.861	0.000
Total Current Liabilities		8.885	31.666	19.639
Net Current Assets		26.060	21.036	20.402
MISCELLANEOUS EXPENSES		0.000	0.000	0.006
TOTAL		28.260	24.086	23.898

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		46.664	30.576	30.067
Other Income		1.240	0.768
Total Income		47.904	31.344	30.067
Profit/(Loss) Before Tax		7.440	2.505	0.358
Provision for Taxation		2.884	0.888	0.000
Profit/(Loss) After Tax		4.556	1.617	0.358
Expenditures :
	Raw Material Consumed	12.240	6.662	NA
	Salaries, Wages, Bonus, etc.	17.010	12.822	NA
	Managerial Remuneration	2.560	2.024	NA
	Payment to Auditors	0.040	0.030	NA
	Interest	0.120	0.068	NA
	Insurance Expenses	0.041	0.041	NA
	Power & Fuel	0.339	0.282	NA
	Other Expenditure	8.114	6.910	NA
Total Expenditure		40.464	28.839	NA

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	9.51	5.16	1.19
Net Profit Margin (PBT/Sales)	(%)	15.94	8.19	1.19
Return on Total Assets (PBT/Total Assets}	(%)	20.03	4.49	0.82
Return on Investment (ROI) (PBT/Networth)		0.32	0.11	0.02
Debt Equity Ratio (Total Liability/Networth)		0.61	1.46	1.08
Current Ratio (Current Asset/Current Liability)		3.93	1.66	2.04

LOCAL AGENCY FURTHER INFORMATION

The Registered Office of the company has been shifted from No. 37, Haudin Road, Bangalore – 560042, Karnataka, India to the present address w.e.f. 29.04.2006

Bankers Charges Report as per Registry

Name of the company

SPECTRUM INFOTECH PRIVATE LIMITED

Presented By

SPECTRUM INFOTECH PRIVATE LIMITED1a, I Main Road, Peenya Industrial Area, Ii Phase, Bangalore – 560058 and Canara Bank, 5^th Cross, Malleswaram, Banalore – 560003

1) Date and description of instrument creating the change

31.10.2000 – Regd. On 21.11.2000 Cash Credit Agreement

Agreement re : Collateral Security : Machinery : Vehicles

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 2.000 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

Present and future stocks of raw materials , goods in process of manufacture and all finished and manufactured goods and articles such as spares, hydraulic components etc.

Present and future book debts, outstanding monies, receivables, claims, bills, rights to or in movable properties and movable assets.

Plant, Machinery, tools and accessories already purchased as per schedule and those to be purchased hereafter.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest at 15.75 % p.a. with quarterly rests

Margin – as may be required by the Bank from time to time

5) Name and Address and description of the person entitled to the charge.

Canara Bank

Malleswaram Branch

Bangalore – 560003

6) Date and brief description of instrument modifying the charge

21.06.2005

Supplemental Agreement

Letter Re : Closures of Limit

Both the above pertain to the same charge.

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.

By the above, the amount secured by charge stands increased from Rs. 2.500 Millions to Rs. 3.500 Millions as under :

Rs in Millions

Nature of facility	Existing Limit	Revised Limit
Cash Credit [Regular]	2.000	3.500
Cash Credit [Adhoc]	0.500	Closed
Total	2.500	3.500

Rate of Interest @ 2 % p.a. above ongoing PLR with a minimum of 12.75 % p.a.

All other terms and conditions remain unchanged.

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.42.86
UK Pound	1	Rs.84.75
Euro	1	Rs.57.71

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	6
--PROFITABILIRY	1~10	4
--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	YES
--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
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