MIRA INFORM REPORT

Report Date :

25.01.2011

IDENTIFICATION DETAILS

Name :	IRIS UNIFIED TECHNOLOGY LIMITED
Registered Office :	E-69, Vasant Marg, Vasant Vihar, New Delhi-110057
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	09.04.2002
Com. Reg. No.:	55-114903
CIN No.: [Company Identification No.]	U80221DL2002PLC114903
TAN No.: [Tax Deduction & Collection Account No.]	DELI04727C
PAN No.: [Permanent Account No.]	AABC1421K
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Authorized Dealer and Distributor of Computer, Hardware and Software. Also Providing IT Infrastructure Products and Solutions.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 52000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Ms. Roma Kapur
Designation :	Director – Finance
Date :	22.01.2011

LOCATIONS

Registered Office :	E-69, Vasant Marg, Vasant Vihar, New Delhi-110057, India
Tel. No.:	91-11-51652316/ 26156713/ 26154056/ 59
Fax No.:	91-11-26178644/ 26149610
E-Mail :	info@irstechnology.in sachinag1981@yahoo.co.cuk nkapur@iristechnology.com
Website :	http://www.iristechnology.co.in
Area :	4500 sq.ft. (Owned)
Corporate Office :	A-34, IInd Floor, Narain Industrial Area, Phase-II, New Delhi-110028, India
Tel. No.:	91-11-47474848/ 47474800
Fax No.:	91-11-25895523
Branch Office 1:	SCF-43, IInd Floor, Sector-31 D, Chandgarh-160030, India
Tel. No.:	91-172-5045068
Fax No.:	91-172-5045065
Area :	Owned
Branch Office 2 :	114, Akash Rath Complex, C.G. Road, Opposite National Handloom, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-66622201
Area :	Owned

DIRECTORS

As on 24.09.2009

Name :	Mr. Navin Kapur
Designation :	Managing Director
Address :	BA-302, Tagore Garden, New Delhi-110027, India
Date of Birth/Age :	15.12.1965
Qualification :	Chartered Accountant
Date of Appointment :	09.04.2002
Name :	Mr. Sanjiv Krishen
Designation :	Director
Address :	E-69, Vasant Marg, Vasant Vihar, New Delhi-110057, India
Date of Birth/Age :	24.03.1948
Qualification :	Engineer
Date of Appointment :	09.04.2002
Name :	Ms. Roma Kapur
Designation :	Director
Address :	BA-302, Tagore Garden, New Delhi-110027, India
Date of Birth/Age :	19.02.1966
Qualification :	Fellow Members/ Institute of CA
Date of Appointment :	15.01.2003
Name :	Mr. Sanjay Krishan
Designation :	Director
Address :	BA-302, Tagore Garden, New Delhi-110027, India
Date of Birth/Age :	05.11.1943
Date of Appointment :	15.01.2003
Name :	Mr. P Krishna Sai
Designation :	Director
Address :	8-3-671-1-1, Jayprakash Nagar Colony, Panjagutta Yellareddyguda, Hyderabad-500873, Andhra Pradesh, India
Date of Birth/Age :	31.10.1967
Qualification :	Computer Science Engineer
Date of Appointment :	17.05.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2009

Names of Shareholders	No. of Shares
Navin Kapur	299700
Sanjiv Krishen	243900
Roma Kapur	300
Mohan Menon	52200
Geetha Menon	300
Deepa Krishen	1800
Sanjay Krishen	1800
Sai Krishna	22500
P Padmaja	60000
Total	682500

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2009

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Authorized Dealer and Distributor of Computer, Hardware and Software. Also Providing IT Infrastructure Products and Solutions.
Agencies Held :	· Array Network · CISCO · Juniper · Symentec · IBM · Websense
Terms :
Selling :	Cash and Credit (30 Days)
Purchasing :	Cash and Credit (30 Days)

GENERAL INFORMATION

Customers :

End Users, OEM’s and Others, Corporates

No. of Employees :

Approximately 50

Bankers :

• Punjab National Bank, MSME, Barakhamba Road, New Delhi-110001, India
• HDFC Bank Limited
• ICICI Bank Limited
• Kotak Mahindra Bank

Facilities :

Secured Loans	31.03.2009 Rs. in Millions	31.03.2008 Rs. in Millions
HDFC Bank (Purchase Bill Discounting)	0.000	6.836
Punjab National Bank Cash Credit (Secured against Fixed Assets and Debtors)	8.137	0.000
ICICI Bank (Secured Against Cars)	0.737	1.006
ICICI Bank (Secured Against Equipment)	0.000	0.081
Total	8.874	7.923
Unsecured Loans	31.03.2009 Rs. in Millions	31.03.2008 Rs. in Millions
Kotak Mahindra Bank (Under Personal Guarantee of Directors)	1.831	0.000
Directors	0.641	0.041
Total	2.472	0.041

Banking Relations :	--
Auditors :
Name :	Singhi Chugh and Kumar Chartered Accountant
Address :	A-1/105, 2^nd Floor, Safdarjung Enclave, New Delhi-110029, India
Tel. No.:	91-11-329159894
Fax No.:	91-11-41659018
E-Mail :	nfo@sckonline.net
Website:	http://www.sckonline.net
Associates/Subsidiaries :	Iris Computers Limited Address: E-69, Vasant Marg, Vasant Vihar, New Delhi-110057, India Pragathi Infotech (Proprietorship) Address: E-69, Vasant Marg, Vasant Vihar, New Delhi-110057, India N. Kapur and Company (Partnership Firm)

CAPITAL STRUCTURE

As on 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 10/- each	Rs. 7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
682500	Equity Shares	Rs. 10/- each	Rs. 6.825 Millons

Of the above:

i) 20000 shares are allotted as fully pad up pursuant to a contract without payments being received in cash.

ii) 455000 equity shares are allotted as fully paid up bonus shares by captalisation of General Reserve (Previous year 22750 Equity Shares of Rs. 10 each)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		6.825	2.275	2.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.268	9.239	4.793
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13.093	11.514	6.993
LOAN FUNDS
1] Secured Loans		8.874	7.923	5.062
2] Unsecured Loans		2.472	0.041	0.093
TOTAL BORROWING		11.346	7.964	5.155
DEFERRED TAX LIABILITIES		0.628	0.573	0.540
TOTAL		25.067	20.051	12.688
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.692	5.216	5.227
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.049	0.045	0.042
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.269	0.381	6.024
	Sundry Debtors	52.014	32.487	35.141
	Cash & Bank Balances	1.639	5.255	3.545
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.310	8.521	2.728
Total Current Assets		69.232	46.644	47.438
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	43.190	28.096	33.615
	Other Current Liabilities	7.414	1.594	4.536
	Provisions	1.520	2.452	2.228
Total Current Liabilities		52.124	32.142	40.379
Net Current Assets		17.108	14.502	7.059
MISCELLANEOUS EXPENSES		0.216	0.288	0.360
TOTAL		25.065	20.051	12.688

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income (Sale- Software/ Hardware)	253.449	223.493	142.808
		Implementation / Training Income	8.079	5.298	4.830
		Incentive and Rebates	0.000	0.000	7.736
		Other Income	0.455	0.412	0.848
		TOTAL	261.983	229.203	156.222
Less	EXPENSES
		Cost of Goods Sold	229.931	200.722	133.820
		Establishment And Administrative Expenses	27.715	20.731	17.175
		TOTAL	256.646	221.453	150.995
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION)		4.337	7.750	5.227
Less/ Add	DEPRECIATION/ AMORTISATION		1.145	0.864	0.720
	PROFIT BEFORE TAX		3.192	6.886	4.507
Less	TAX		1.613	2.440	1.733
	PROFIT AFTER TAX		1.579	4.446	2.774
	Earnings Per Share (Rs.)		2.31	--	--

Expected Sales (2010-2011) : Rs. 300.000 Millions

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	0.60	1.94	1.78
Net Profit Margin (PBT/Sales)	(%)	1.26	3.08	3.16
Return on Total Assets (PBT/Total Assets}	(%)	4.15	13.28	8.56
Return on Investment (ROI) (PBT/Networth)		0.24	0.60	0.64
Debt Equity Ratio (Total Liability/Networth)		4.85	3.48	6.51
Current Ratio (Current Asset/Current Liability)		1.33	1.45	1.17

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2009	31.03.2008	31.03.2007
Sundry Creditors	43.190	28.096	33.615
Total	43.190	28.096	33.615

Trade References:

· Max Healthcare Limited

· Interglobal Technologies Limited

· Galileo India Limited

Market Development and Company Performance and Overview:

The company has shown an increase of total income of Approximately 15% this year and decrease in Profit after tax from about 4.400 Millions to Rs. 1.600 Millions. these figures reflect the slowdown in the economy and its impact of IT industry. Although the company during the year has increased the gross turnover and resisted the market developments, the man impact on the bottom line has been due to expenses on infrastructure and opening of new offices. They are adding new product lines and trying to improve the product mix.

They are all aware that good human resources is hard to find and even harder to retain, and to achieve the goals they have invested in valuable Human Resources and Technology. This also reflects on a low attrition rate that the company has as compared to other companies.

With Indian Economy estimated to grow at the rate of 7% in next year the Domestic IT Market also stabilizing IT spending will increase at a healthy in 2009-10. Though growth may decline marginally to this year due to reduced IT costs, the nature and pattern of IT adoption is becoming more sophisticated.

Today, they are recognized in the market as a major force in Advanced Infrastructure solutions with some major acquisition of customers which would enhance the value proposition for the Company. The Company alliances with all leading Technology Compantes have provided an edge over various Competitors and this would go a big way in enhancing the bottom line of the Company. You Company plan to further expand in IT Outsourcing as most companies are realizing that they have scare resource, so they need to take decision to run IT in terms of driving focuses and strategies

The combined spend on packaged software and services exceed that of hardware; thankfully Indian enterprises are maturing and looking at IT beyond its traditional role of support and maintained somehow sullies the optimism. However, many of the global MNCs do not pay software license fees in India as their parents have global contracts with software vendors, resulting in loss of a few points for software pending.

The IT spend per employee has nearly doubled across Indian enterprises; naturally, the IT/BPO sector leads the way here, through both BFSI and oil and petrochemicals have done better than the industry average. And though the spend on IT per employee is lowest in retail, the IT spend to turnover percentage is much higher here than the industry average figure. However, the lT/BPO sector has the highest percentage of IT spend to turnover followed by BFSI and Media; at more than 1% all three sectors are close to acceptable global norms.

Lastly, but not the least you company is committed to achieving great height in coming years and would be a leader in End-to end IT infrastructure Solution in the Country.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U80221DL2002PLC114903
Name of the company	IRIS UNIFIED TECHNOLOGY LIMITED
Address of the registered office or of the principal place of business in India of the company	E-69, Vasant Marg, Vasant Vihar, New Delhi-110057, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Punjab National Bank, MSME, Barakhamba Road, New Delhi-110001, India
Nature of description of the instrument creating or modifying the charge	Hypothecation of movable assets forming part of Fixed/ Block Assets
Date of instrument Creating the charge	23.01.2009
Amount secured by the charge	RS. 10.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 2% p.a. over the reserve bank of India rate with minimum of BPLR + 2% per annum or at such rate as may be prescribed by the bank from time to time. Terms of Repayment Bank shall have absolute discretion for granting or continuance of said credit facilities and determining amounts to be advanced / outstanding from time to time within the limit in a/c to be opened by Bank. Facility to be repayable on demand. Margin 40% Extent and Operation of the charge First Exclusive charge on all fixed/ block assets, both present and future, to secure the said credit facility in addition to any other securities that have been given.
Short particulars of the property charged	The borrowers hypothecate with the bank all assets and movable property of any kind belonging to them which now or hereafter from time to time shall be brought in , stored in or to be in or about at A-34, 2^nd floor, Naraina Industrial Area , Phase 2, Delhi-28.

Fixed Assets:

· Computers

· Software

· Furniture and Fixtures

· Office Equipments

· Car

· Goodwill

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.45.58
UK Pound	1	Rs.72.79
Euro	1	Rs.62.01

SCORE & RATING EXPLANATIONS

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