MIRA INFORM REPORT

Report Date :

02.05.2008

IDENTIFICATION DETAILS

Name :	SAVEX COMPUTERS LIMITED
Registered Office :	124-B, Maker Chambers III, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	16.02.1988
Com. Reg. No.:	11-46237
CIN No.: [Company Identification No.]	U31909MH1988PLC046237
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37240A
PAN No.: [Permanent Account No.]	AAACS5547
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers, Dealers, Importers and Exporters of all kinds of electronic goods, components, materials, sub-assemblies, instruments, devices and systems.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1019884
Status :	Very Good
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/Factory :	124-B, Maker Chambers III, Nariman Point, Mumbai – 400021, Maharashtra
Tel. No.:	91-22-22881616/1717
Fax No.:	91-22-22041656
E-Mail :	savex@bom3.vsnl.net.in ho@savexcomputers.com savex@vsnl.com
Website :	http://www.savex.org
Warehouse	B-4, Mitul Industrial Estate, Village Valiv, Vasai Road, I. E. District, Thane – 401208, Maharashtra, India
Branches :	Located at: - · Subhash, No. 7, Ishawashyam Bungalows, Behind Shyamlal, Row House No. 5, Satellite, Ahmedabad – 380 015, Gujarat Fax. 91-79-26604714 / 26604719 · No. 8, Mota Chamber 9, Millers Road, Bangalore – 560 052, Karnataka Tel. 91-80-22267387 Fax. 91-80-22286434 E-mail. savexble@vsnl.com · 40-A, Ground Floor, Bakul Bagan Road, Kolkata – 700 025, West Bengal Tel. 91-33-24559077 / 24744134 / 24744135 E-mail. savex@cal2.vsnl.net.in · SCO 34, Sector 33 D, Chandigarh – 160 047 Tel. 91-172-2382558 / 2621050 E-mail. savexchd@sancharnet.in · 27, Conjeevaram, Pachiappa Mudali Street, off Langs Garden Road, Pudupet, Chennai – 600 002, Tamilnadu Tel. 91-44-228511141 / 28410208, 91-44-22230221 (Res.) Fax. 91-44-28588362 · Unit No. 1, 39/40 – B, 2^nd Floor, Karakkat Road, Ernakulam, Kochi – 682 016, Kerala Tel. 91-484-2377222 / 2377436 Fax. 91-484-2230221 E-mail. savex@md3.vsnl.net.in · Sabol Business Comm Center, Selvam Building, 988, Thadagam Road, R. Spuram, Coimbatore – 641 002 Tel. 91-422-2472408 / 2475226 Fax. 91-422-2472966 E-mail. savexcoi@hclinfinet.com · Ram Kumar Arcade, 1^st Floor, R. No. 2010, Chatribari Road, Guwahati – 781 001, Assam Tel. 91-361-2604291 / 648 E-mail. berliacompu@sify.com · 2882, Shamsher Lane, Premjit Road, Gurudev Nagar, Ludhiana – 141 001, Punjab Tel. 91-161-2771479 E-mail. savexldh@hclinfinet.com · B-62 A, Ground Floor, Kalkaji, New Delhi – 110 019 Tel. 91-11-26291362 / 63 Fax. 91-11-26291364 E-mail. savexdel@vsnl.com · 4 and 5, Hidayat Building, Behind IBM, Pune College Road, Bhavani Peth, Pune – 411 042 Tel. 91-20-6458947 / 6451256 E-mail. savexpun@vsnl.com · Serve No. 181, S. K. Reddy Complex, Chitta Reddy Colony, Tarband Cross Road, Secunderabad – 500 009, Andhra Pradesh Fax. 91-40-27818154 / 27899824 Pager – 9628-950346

DIRECTORS

Name :	Mr. Anil Ishwarlal Jagasia
Designation :	Chairman Cum Managing Director
Address :	16, Soona Mahal, 143, Marine Drive, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	24.08.1960
Qualification :	B.E.
Experience :	22 years
Date of Appointment :	16.02.1988
Previous Employment	Savex Corporation – Managing Partner (2 years)
Email :	anil@savexcomputers.com
Name :	Mrs. Anuradha Anil Jagasia
Designation :	Whole Time Director
Address :	16, Soona Mahal, 143, Marine Drive, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	15.06.1962
Date of Appointment :	16.02.1988
Name :	Mr. Devang A. Pandya
Designation :	Whole Time Director
Address :	13, Vora Bhuvan, King Circle, Matunga, Mumbai – 400 019, Maharashtra, India
Date of Birth/Age :	05.06.1964
Date of Appointment :	23.10.2001
Name :	Mr. Jayant Goradia
Designation :	Director
Address :	203, Asha Niketan, Baptista Road, Vile Parle (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	04.09.1960
Date of Appointment :	23.10.2001
Email:	mohan@savexcomputers.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 27.09.2005)

Names of Shareholders	No. of Shares
Mr. Anil Ishwarlal Jagasia	3797300
Mrs. Anuradha A. Jagasia	800
Mr. Deepak L. Dudhane	800
Mr. Raunak A. Jagasia	200000
Mr. Ravindra L. Dudhane	800
Mrs. Savitri I. Jagasia	100
Mr. Devang A. Pandya	100
Mr. Jayant Goradia	100
Total	4000000

(As on 31.03.2007)

Category	Percentage
Directors and relatives of directors	100%

BUSINESS DETAILS

Line of Business :

Manufacturers, Dealers, Importers and Exporters of all kinds of electronic goods, components, materials, sub-assemblies, instruments, devices and systems.

Products :

Products Description	Item Code No.
Computers Parts and Associates	8471

· Computers

· Peripherals

· Electronic goods

· Components

· Materials

· Sub-assemblies

· Instruments

· Devices

· Systems

GENERAL INFORMATION

Suppliers :	· Aditya Infotech Private Limited · Allion Computer Inc. · Lanbit India Private Limited · Redington India Private Limited · Samsung Electronics Company Limited (Display), (Indonesia), (Korea) · View Sonic International Corporation, (Malaysia) · Savex Enterprises
Customers :	· 3 Com India Private Limited · Add-on Infotech Private Limited · BIIT Computers · Delstar Systems and Services · Eureka Forbes Limited · Gemini Infotech Private Limited · International Roofs Electronics Systems Private Limited · Kunbar Peripherals Private Limited · Lanbit Peripherals Private Limited · Mini Comp Limited · Novo Computers Private Limited · Pacific Infotech Private Limited · PCS Industries Limited · S. D. Computers Limited · Sujata Electronics Limited · Zenith Computers Limited
No. of Employees :	200
Bankers :	· Bank of Baroda · Syndicate Bank · State Bank of Hyderabad · IDBI Bank · CITI Bank, NA Bandra Kurla Complex, Bandra (East), Mumbai -400051, Maharashtra, India · Centurion Bank Mumbai, Indore · HDFC Bank` Chennai, Coimbatore · Union Bank of India Nariman Point, Mumbai, Maharashtra, India · Union Bank of India Tardeo Branch, 251-B, Sethna House, Mumbai-400 007, Maharashtra. · Standard Chartered Bank 90, M G Road, Fort, Mumbai – 400001, Maharashtra, India

Banking Relations :	Satisfactory
Auditors :
Name :	N. K. Karla and Associates Chartered Accountants
Address :	Sai Chambers, 1^st Floor, Opp. Gulmarg Co-operative Housing Society, R. C. Marg, Chembur Naka, Mumbai-400 071
Tel. No.:	91-22-25293005/7
Associates/Subsidiaries :	· Savex Enterprises 124-B, Maker Chambers III, Nariman Point, Mumbai – 400 006 · Savex Corporation Shop No. 19, Nicchaldas Market, Sindhi Society, Chembur, Mumbai – 400 071 · Clearpoint Electronics Private Limited B/3, Mitul Industrial Estate, Villge Valiv, Vasai Road (East), Thane, Maharashtra · J’Sons International 18, Soona Mahal, 143, Marine Drive, Mumbai – 400 020, Maharashtra, India · Savex Care Products Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		40.000	40.000	40.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		214.971	174.837	139.397
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		254.971	214.837	179.397
LOAN FUNDS
1] Secured Loans		517.468	157.446	15.424
2] Unsecured Loans		50.199	69.330	56.320
TOTAL BORROWING		567.667	226.776	71.744
DEFERRED TAX LIABILITIES		0.508	0.432	0.714
TOTAL		823.146	442.045	251.855
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.336	11.914	12.117
Capital work-in-progress		3.512	0.000	0.000
INVESTMENT		0.091	0.089	0.085
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	260.410	109.991	42.302
	Sundry Debtors	506.798	303.620	153.278
	Cash & Bank Balances	9.352	10.832	128.183
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	111.785	64.490	38.539
Total Current Assets		888.345	488.933	362.302
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	21.592	14.281	83.810
	Provisions	64.546	44.610	38.839
Total Current Liabilities		86.138	58.891	122.649
Net Current Assets		802.207	430.042	239.653
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		823.146	442.045	251.855

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		4415.081	2879.632	2442.748
Other Income		1.831	1.701	1.732
Total Income		4416.912	2881.333	2444.480
Profit/(Loss) Before Tax		65.620	59.998	55.089
Provision for Taxation		22.749	21.822	20.181
Profit/(Loss) After Tax		42.871	38.176	34.908
Expenditures :
	Administrative Expenses	4238.281	2746.047	2322.485
	Raw Material Consumed	7.579	35.737	37.906
	Salaries, Wages, Bonus, etc.	30.730	21.594	15.262
	Interest	15.016	5.998	4.768
	Power & Fuel	1.107	1.189	1.372
	Depreciation & Amortization	4.043	3.916	3.050
	Other Expenditure	54.536
Total Expenditure		4351.292	2814.481	2384.843

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.97	1.32	1.42
Net Profit Margin (PBT/Sales)	(%)	1.49	2.08	2.25
Return on Total Assets (PBT/Total Assets}	(%)	7.24	11.97	14.71
Return on Investment (ROI) (PBT/Networth)		0.26	0.27	0.30
Debt Equity Ratio (Total Liability/Networth)		2.56	1.32	1.08
Current Ratio (Current Asset/Current Liability)		10.31	8.30	2.95

LOCAL AGENCY FURTHER INFORMATION

BUSINESS

The company is incorporated to carry on the business in manufacturers, dealers, importers and exporters of all kinds of electronic goods, components, materials, sub-assemblies, instruments, devices and systems.

It also acts as consultants to electronic industries and also undertakes Research and Development activities and sells the know-how developed on suitable terms both in India and abroad

The company is one of the National Distributors for the leading International I.T. Company Samsung Electronics for marketing their products in India.

The company also represents other brands like Viewsonic, Lanbit, 3 Com and US Robotics. The company is marketing colour monitors, printers, systems, modems, keyboards, hard disk drives, floppy disk drives and other computer peripherals.

Currently the company has 12 branches spread geographically across the nation to provide a good national network. The company intends to open a few more branches for the coming year. The company will add additional products like thin client, motherboards, CPU’s and other essential components. The company will embark and focus in development of Software.

The company’s principles are based on providing and distributing products 11 relevant to the product usage life cycles and need of the computer user.

From a modest beginning as a PC Relating and Peripheral distributor company in 1986, they had continuously innovated system strategies, making the company most suitable partner of choice. Dataquest Channel had rated the company in the year 1 as one of the Top 5 IT Distribution companies in India with sales of Rs.1950 millions; it had a growth rate much ahead of the computer industry. They had been appreciated and recognised nationally as customer oriented, efficiently managed and a channel friendly distribution company.

Starting as a distributor for Samsung Electronic Company, Korea, and company had similar agreements with hardware companies Mercury, U. S. Robotics, Viewsonic and 3com in India.

Unlike other distribution companies, it ensures that its second channel members are protected by limiting the number of its channel members in a designated region. Having over 14 offices through out India, the company ensures all parts of the country are for their hardware requirements.

The company had more than 1600 channel member spread all over India. Excellent penetration in class ‘C’ towns had helped the smaller to prosper, thus ensuring future growth and success for company in new millennium.

Form 8:

Corporate identity number (CIN) Foreign company registration number	U31909MH1988PLC046237
Name of the Company	SAVEX COMPUTERS LIMITED
Address	124-B, Maker Chambers III, Nariman Point, Mumbai – 400021, Maharashtra, India
This form is for	Modification of Charge
Type of Charge	Book Debts Movable Property (Not being pledge) Floating Charge
Particulars of the charge holder	Standard Chartered Bank 90, M. G. Road, Fort, Mumbai – 400001, Maharashtra, India reenabang@rediffmail.com
Nature or description of the instrument(s) creating or modifying the charge	Supplemental Agreement of Hypothecation of Current and Movable Assets
Date of the instrument creating or modifying the charge	15.03.2007
Amount secured by the charge	Rs.150.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interests: Invoice Financing/ Letter of Credit/ OD/ Working Capital Demand Loan- Interests- At the rate as negotiated with the agreed by the Bank OD/ Working Capital Demand Loan- shall be payable on monthly rest. Terms of Repayments: Invoice Financing: Tenor – Max upto 59 days Letter of Credit – Maximum upto 59 days OD: Tenor – One Days Working Capital Demand Loan - Tenor – Maximum upto 29 days Margin: As applicable, if any Extent and operation of the charge: Hypothecation by way of first charge to the Bank on: All the present and future of the movable properties of the borrower All the present and future book debts, outstanding moneys receivable claims and bills All the present and future stock in trade (As more described in the Agreement attached herewith)
Short particulars of the property charged (including location of the property)	Hypothecation by way of first charge to the Bank on: All the present and future of the movable properties of the borrower All the present and future book debts, outstanding moneys receivable claims and bills All the present and future stock in trade (As more described in the Agreement attached herewith)
Particular of the present modification	By way of present modification, the charge amount enhanced from Rs.120.000 Millions to Rs.150.000 Millions other terms and conditions remain the same.

Fixed Assets

· Furniture and Fixture

· Electronic Equipments

· Cellular Phone

· Cycle

· Electronic Typewriter

· Fax machine

· Furniture and Fixtures

· Gala at Vasai

· Generator

· Page

· Xerox machine

· Computers

· Premises at Mahape

· Motor Cycle.

As per website details

The company was founded in 1986 as subject by Mr. Anil Jagasia, and later incorporated as Subject in 1988.They are today among the six largest Information Technology distributors in India. (Ref: Dataquest India)

With its headquarters in Mumbai, and 31 sales offices and stock locations (and growing) spread across the country, subject is well poised to take on the challenge of being a potent force in Information Technology Distribution.

With over two decades of expertise and experience in Distribution that yield better reseller leads, subject also offers its Vendors access to more than 5000 Channel Partners, Retailers, Corporate resellers, VARs and System Integrators.

Their core competencies in distribution are, better Logistics, efficiently monitored Inventory management, flexible credit financing for dealers, a national channel reach and an excellent reseller account management system.

Unlike other large Multinational distributors who have their 'own axe to grind', subject has always worked together with Vendors to help them implement their plans for the Indian market.

Addressing the SMB market effectively is currently their key agenda. Their endeavor is to focus on each individual channel member's requirement, especially when the customer needs solutions and not just boxes, on schedule and within budget.

Their efficient credit evaluation cell continuously corroborates the financial requirements of the channel members and is able to quickly resolve any ad hoc credit or deal financing requirement.

Subject has always strived to continually discover new ways to take costs out of the supply chain. Improved business processes have helped the company operate efficiently, sometimes even on wafer thin margins.

Localized expertise and knowledge is the driving power in their I.T. supply chain solutions. Other than being known in India for their domestic logistics finesse, Subject also offers a variety of business development services, like supply management, product handling, and retail program management.

Their business continues to evolve based on ever-changing market conditions. Willingness to embrace change is the key to their continued success. They at subject continually innovate their order management and delivery systems to improve customer satisfaction, ensuring growth and higher profitability for their business partners and shareholders.

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.42.66
UK Pound	1	Rs.79.99
Euro	1	Rs.63.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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