MIRA INFORM REPORT

Report Date :

03.12.2011

IDENTIFICATION DETAILS

Name :	TAKSHEEL SOLUTIONS LIMITED (w.e.f. 29.11.2006)
Formerly Known As :	IBSS TECHNO-PARK PRIVATE LIMITED
Registered Office :	Survey No.-201, Manikonda Village, Rajendra Nagar Mandal, Hyderabad-500089, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.09.1999
Com. Reg. No.:	01-032556
Capital Investment/ Paid-up Capital:	Rs. 164.813 Millions
CIN No.: [Company Identification No.]	U72200AP1999PLC032556
TAN No.: [Tax Deduction & Collection Account No.]	HYDI00531G
PAN No.: [Permanent Account No.]	AAACI7325P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of providing products and services to the financial services industry, Information Technology and Telecom.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 3700000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Survey No.-201, Manikonda Village, Rajendra Nagar Mandal, Hyderabad-500089, Andhra Pradesh, India
Tel. No.:	91-40-40215915/ 16/ 17
Fax No.:	91-40-40215916
E-Mail :	vempalliprasad@gmail.com info@taksheel.com Noc@taksheel.com (Support) support@taksheel.com (Support) hr@taksheel.com (Careers)
Website:	www.taksheel.com
Warangal Office :	IT Park, Madikonda Madikonda Village, Kazipet, Warangal-506142, Andhra Pradesh, India
USA Office :	33, Wood Avenues South Iselin, NJ-08830
Tel. No.:	+1 732 354 0876
Fax No.:	+1 732 875 0213
Singapore Office :	1 Raffles Place, # 28-02, One Raffles Place, Singapore (048616)

DIRECTORS

As on 12.08.2011

Name :

Mr. Venkata Ramana Nadimpalli

Designation :

Director

Address :

No. 201, Indra Dhanush Pavani Estates, Road No. 2, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India

Date of Appointment :

02.05.2007

DIN No.:

00040072

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U85320DL1987NPL027141	Indian Grameen Services	Director	19/07/2008	26/04/2003	-	Active	NO
2	U74899DL1996PLC081127	BHARTIYA SAMRUDDHI FINANCE LIMITED	Managing director	01/04/2007	11/05/2005	19/07/2008	Active	NO
3	U74899DL1996PLC078267	Bhartiya Samruddhi Investments And Consulting Services Limited	Whole-time director	01/04/2008	18/04/2006	18/07/2008	Active	NO
4	U72200AP1999PLC032556	Taksheel Solutions Limited	Director	28/09/2007	02/05/2007	-	Active	NO
5	U74140OR2007PLC009274	Ctran Consulting Limited	Director	29/08/2008	04/03/2008	-	Active	NO
6	U74999DL2000PTC104814	Indian Agribusiness Systems Private Limited	Director	01/12/2009	01/12/2009	-	Active	NO
7	U74899DL2001NPL109771	Indian Society Of Agribusiness Professionals	Director	01/12/2009	01/12/2009	-	Active	NO
8	U93000AP2010NPL066991	United Care Development Services	Director	11/02/2010	11/02/2010	-	Active	NO
9	L65923DL1996PLC195299	Capital Trust Limited	Additional director	10/05/2011	10/05/2011	-	Active	NO

Name :

Mr. Rama Swamy Kuchana

Designation :

Director

Address :

1266/1, Advocates Colony, Road No. 8, Balasamudram, Hanmkonda, Warangal-506002, Andhra Pradesh, India

Date of Appointment :

26.06.2008

DIN No.:

00911738

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U64203AP2000PLC034854	Vertibra Communications Private Limited	Director	05/07/2000	05/07/2000	-	Dormant	NO
2	U72900AP2008PTC058046	Tarkshya Computer Solutions Private Limited	Director	07/03/2008	07/03/2008	-	Active	YES
3	U72200AP1999PLC032556	Taksheel Solutions Limited	Director	30/09/2008	26/06/2008	-	Active	NO

Name :

Mr. Pavan Kumar Kuchana

Designation :

Managing Director

Address :

16-4-65/B-6, Shivnagar, Warangal-506002, Andhra Pradesh, India

Date of Appointment :

25.05.2000

DIN No.:

00912842

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72200AP1999PLC032556	Taksheel Solutions Limited	Managing director	07/06/2010	25/05/2000	-	Active	NO

Name :

Mr. Vijay Kumar Devarkonda

Designation :

Director

Address :

H. No. 11-2-472/15, Namalagundu, Mahamoodguda Ward, Sithamphaalmandi Post, Secunderabad-500061, Andhra Pradesh, India

Date of Appointment :

05.08.2010

DIN No.:

01768820

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51219AP2004PTC042598	Sacagawea Impex Private Limited	Director	25/06/2007	25/06/2007	23/10/2008	Dormant	NO
2	U72200AP2001PTC037163	Vsg Solutions Private Limited	Director	30/09/2009	10/01/2009	17/12/2009	Active	YES
3	U80902AP2009PTC063084	Placesmart Educational services private limited	Director	18/03/2009	18/03/2009	-	Active	NO
4	U72200AP1999PLC032556	Taksheel Solutions Limited	Director	05/08/2010	05/08/2010	-	Active	NO
5	U80901AP2010PTC069975	Lefoli Education Private Limited	Director	13/08/2010	13/08/2010	-	Active	NO

Name :

Mr. Pramod Chada

Designation :

Director

Address :

P No. 41F No. 404, Tulips Residency, Kondapur, R R District-500084, Andhra Pradesh, India

Date of Appointment :

05.08.2010

DIN No.:

03279131

KEY EXECUTIVES

Name :	Mr. Ankit Das
Designation :	Company Secretary
Address :	Flat No. 201, Block No. 16, Malaysian Township, RTP-1, KPHB Colony, Kukatpally, Hyderabad-500072, Andhra Pradesh, India
Date of Appointment :	16.03.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 12.08.2011

Names of Shareholders	No. of Shares
Rama Swamy Kuchana	270090
Pavan Kumar Kuchana	508968

As on 13.10.2011

List of Allottees	No. of Shares Allotted
Kasturbhai Mulchandbhai Shah	760
Vanlilaben Kasturbhai Shah	380
Rikin Kasturbhai Shah	760
Nikeeta Rikin Shah	380
Nehal Kasturbhai Shah	760
Birva Nehal Shah	380
Nagindas Mulchandbhai Shah	760
Manjulaben Nagindas Shah	380
Mita Nagindas Shah	380
Nilam Hemand Shah	380
Darshil Hemand Shah	380
Sonam Darshil Shah	380
Bhavik Nagindas Shah	380
Jaini Bhavik Shah	380
Mauna Bhavik Shah	380
Sunil Kumar Gupta	380
Meenakshi Gupta	380
Bajrang Kumar	380
Manju	380
Kiran Devi	380
Poonam Gupta	380
Praveen Gpta	380

Equity Share Breakup (Percentage of Total Equity)

(AS ON 30.09.2011)

Category	Percentage
Bodies corporate	29.13
Directors or relatives of directors	63.31
Others	7.56
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of providing products and services to the financial services industry, Information Technology and Telecom.

GENERAL INFORMATION

Bankers :

· Axis Bank Limited, 6-3-879/B, Pullareddy Buildings, Green Lands Road, Begumpet, Hyderabad-500016, Andhra Pradesh, India

· ABN Amro Bank

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Cash Credit- Axis Bank Limited (Secured By hypothecation of all current assets, Fixed Assets and Collateral security on properties of Directors and Third parties and personal guarantee by Directors)	30.381	31.976
Vehicle Loan from Sundaram Finance Limited	0.551	0.000
Total	30.932	31.976
Note: Cash Credit facility of Rs. 30.000 Millions from Axis Bank Limited is secured primarily by first charge on entire current assets, present and future of the company, and collaterally by first charge on entire fixed assets, present and future, equitable mortgage of land and residential houses belonging to Directors and their relatives.
Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
ABN Amro Bank	1.827	2.113
Money Line Credit Limited	0.458	1.235
Reliance Capital Limited	2.129	2.690
Kotak Mahindra Bank Limited	0.000	0.658
Bigus Software Limited	2.000	0.000
Total	6.414	6.696
Note: The company has obtained the unsecured loans from various banks and financial institution and is regular in repaying the installments and interest due thereon.

Banking Relations :	--
Financial Institute:	Sundaram Finance Limited
Auditors :
Name :	Karumanchi and Associates Chartered Accountant
Address :	Flat No. 301, Swarganivas Enclave, 7-1-619/A, Behind Huda Complex, Ameerpet, Hyderabad-500038, Andhra Pradesh, India
PAN No.:	AADFK3661L
Holding Company :	Lexicon Private Limited

CAPITAL STRUCTURE

After 12.08.2011

Authorized Capital: Rs. 250.000 Millions

Paid-up Capital : Rs. 218.521 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Share	Rs.10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16352107	Equity Share	Rs.10/- each	Rs. 163.521 Millions
	Share Application Money		Rs. 1.292 Millions
	Total		Rs. 164.813 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		164.813	114.813	113.521
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		767.699	636.799	612.757
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		932.512	751.612	726.278
LOAN FUNDS
1] Secured Loans		30.933	31.976	30.229
2] Unsecured Loans		6.414	6.696	0.000
TOTAL BORROWING		37.347	38.672	30.229
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		969.859	790.284	756.507
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		420.764	329.011	330.479
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	26.704	26.704
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	425.167	297.556	118.898
	Cash & Bank Balances	1.245	13.796	9.780
	Other Current Assets	0.000	0.000	32.732
	Loans & Advances	178.483	159.108	269.828
Total Current Assets		604.895	470.460	431.238
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.000	0.000	0.000
	Other Current Liabilities	54.679	34.970	31.257
.	Provisions	1.121	0.921	0.657
Total Current Liabilities		55.800	35.891	31.914
Net Current Assets		549.095	434.569	399.324
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		969.859	790.284	756.507

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income from Software and Consultancy Services	495.015	331.952	317.167
		Foreign Exchange Fluctuation	0.000	22.342	3.129
		Other Income	0.000	0.008	0.000
		TOTAL (A)	495.015	354.302	320.296
Less	EXPENSES
		Foreign Exchange Fluctuation	42.211	0.000	0.000
		Personnel and Operating Expenses	339.476	314.417	133.203
		Administrative Expenses	26.389	7.292	22.095
		TOTAL (B)	408.076	321.709	155.298
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		86.939	32.593	164.998
Less	FINANCIAL EXPENSES (D)		5.399	5.093	3.386
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		81.540	27.500	161.612
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.639	3.187	3.065
	PROFIT BEFORE TAX (E-F) (G)		80.901	24.313	158.547
Less	TAX (H)		0.000	0.271	18.226
	PROFIT AFTER TAX (G-H) (I)		80.901	24.042	140.321
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		234.508	210.466	NA
	BALANCE CARRIED TO THE B/S		315.409	234.508	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	495.015	331.953	NA
	TOTAL EARNINGS		495.015	331.953	NA
	Earnings Per Share (Rs.)		5.84	2.12	13.60

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	16.34	6.79	43.81
Net Profit Margin (PBT/Sales)	(%)	16.34	7.32	49.99
Return on Total Assets (PBT/Total Assets}	(%)	7.89	3.04	20.81
Return on Investment (ROI) (PBT/Networth)		0.09	0.03	0.22
Debt Equity Ratio (Total Liability/Networth)		0.10	0.10	0.09
Current Ratio (Current Asset/Current Liability)		10.84	13.11	13.51

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets:

· Air Conditioner

· Computer and Software

· Electrical Equipments

· Furniture and Fixtures

· Office Equipments and Others

· Plant and Machinery

AS PER WEBSITE

Profile:

Taksheel is a comprehensive IT solutions company focused on providing technology solutions and services for the enterprises engaged in financial service industry, which is one of the industries driven by technology all over the world. The 12 years of presence in the industry has given them excellent business domain knowledge and experience in deploying sophisticated and secure financial data and analytical solutions.

The hands on knowledge of several products, in the financial services environment, enables them to deliver exceptional results to the clients in terms of customization/ implementation of a third party, modular, or legacy systems.

The ability to integrate third party applications/solutions into the software frameworks, such as "Integrted Wealth Management Framework" coupled with the global delivery model and ISO 2001 quality standards help the clients meet their business objectives in shorter time frames even under tighter IT budgets.

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.51.35
UK Pound	1	Rs.80.51
Euro	1	Rs.69.14

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.