MIRA INFORM REPORT

Report Date :

17.06.2011

IDENTIFICATION DETAILS

Name :	NETWORK TECHLAB (INDIA) PRIVATE LIMITED
Registered Office :	Unit-41, Near Paper Box Company, Sarvodaya Industrial Estate, Mahakali Caves Road, Andheri (E), Mumbai-400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	29.11.2000
Com. Reg. No.:	11-129795
Capital Investment / Paid-up Capital :	Rs.2.500 Millions
CIN No.: [Company Identification No.]	U72900MH2000PTC129795
TAN No.: [Tax Deduction & Collection Account No.]	MUMN07194F / MUMH07194F
PAN No.: [Permanent Account No.]	AABCN2665A
Legal Form :	Private Limited Liability Company
Line of Business :	IT consultant and Service Provider for Network Security, Data Backup, UPS.
No. of Employees :	More Than 225 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 38000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The management has not filed the financial of the company with the government department after the year 2008. Trade relations are reported as fair. Business is active. Payments are reported not known. The company can be considered for business dealings with some caution.

NOTES :

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

INFORMATION PARTED BY

Name :	Mr. Mehul
Designation :	Accounts Department
Date :	16.06.2011

LOCATIONS

Registered Office :	Unit-41, Near Paper Box Company, Sarvodaya Industrial Estate, Mahakali Caves Road, Andheri (E), Mumbai-400093, Maharashtra, India
Tel. No.:	91-22-66814141/40564141
Fax No.:	91-22-66814150/80
E-Mail :	mehul@netlabindia.com
Website :	http://www.netlabindia.com
Area :	Owned

DIRECTORS

AS ON 30.09.2008

Name :	Mr. Atul H Gosar
Designation :	Director
Address :	17, Yogeeta CHSL, 6^th Road, Daulat Nagar, Borivali (E), Mumbai-400060, Maharashtra, India
Date of Birth/Age :	12.05.1972
Date of Appointment :	29.11.2000
Name :	Mr. Haresh Jivraj Gada
Designation :	Director
Address :	6, Keshav 10/12, Jagdusha Nagar, Ghatkopar (W), Mumbai-400086, Maharashtra, India
Date of Birth/Age :	14.06.1972
Date of Appointment :	29.11.2000
Name :	Mrs. Veena Atul Gosar
Designation :	Director
Address :	17, Yogeeta CHSL, 6^th Road, Daulat Nagar, Borivali (E), Mumbai-400060, Maharashtra, India
Date of Appointment :	29.11.2000
Name :	Mrs. Bina Haresh Gada
Designation :	Director
Address :	6, Keshav 10/12, Jagdusha Nagar, Ghatkopar (W), Mumbai-400086, Maharashtra, India
Date of Birth/Age :	18.12.1972
Date of Appointment :	29.11.2000

KEY EXECUTIVES

Name :	Mr. Mehul
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2008

Names of Shareholders	No. of Shares
Haresh Jivraj Gada	87500
Bina Haresh Gada	12500
Atul H Gosar	87500
Veena Atul Gosar	12500
Epsilon India Limited, India	20000
Ankit Doshi	5000
Rekha Hemant Doshi	5500
Aditi M. Gawangi	1000
Maruti Namdev Gawandi	1000
Sanjeet P. Shah	750
Indumati P. Shah	750
Mona Digital Equipment Limited, India	5500
Mona Esecurities Limited, India	5500
Naresh Sanoramji Choudhary	5000
Total	250000

AS ON 30.09.2008

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	IT consultant and Service Provider for Network Security, Data Backup, UPS.
Terms :
Purchasing :	Depend

GENERAL INFORMATION

Customers :

Others

No. of Employees :

More Than 225 (Approximately)

Bankers :

NKGSB Co-Operative Bank Limited, Laxmi Sadan, 361, V.P. Road, Girgaum, Mumbai-400004, Maharashtra, India

Facilities :

Unsecured Loan	As on 31.03.2008 (Rs. in Millions)	As on 31.03.2007 (Rs. in Millions)
Loan from relative and friends	18.097	16.642
Loan from directors	0.798	0.073
Total	18.895	16.715

Banking Relations :	--
Auditors :
Name :	K. Gala and Assoicates Chartered Accountant
Address :	12/A, Singapuri Building, 1^st Floor, 609 JSS Road, Marine Lines, Mumbai-400002, Maharashtra, India

CAPITAL STRUCTURE

AS ON 30.09.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		2.500	2.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		7.098	1.392
4] (Accumulated Losses)		0.000	0.000
NETWORTH		9.598	3.392
LOAN FUNDS
1] Secured Loans		2.883	3.614
2] Unsecured Loans		18.895	16.715
TOTAL BORROWING		21.778	20.329
DEFERRED TAX LIABILITIES		0.947	0.817
TOTAL		32.323	24.538
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.330	13.366
Capital work-in-progress		0.000	0.000
INVESTMENT		0.106	0.106
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.159	6.981
	Sundry Debtors	22.787	27.628
	Cash & Bank Balances	0.329	1.115
	Other Current Assets	0.000	0.000
	Loans & Advances	3.826	1.540
Total Current Assets		39.101	37.264
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.799	13.036
	Other Current Liabilities	12.769	12.865
	Provisions	0.650	0.303
Total Current Liabilities		21.218	26.204
Net Current Assets		17.883	11.060
MISCELLANEOUS EXPENSES		0.004	0.006
TOTAL		32.323	24.538

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2008	31.03.2007
	SALES
		Income from Operation	158.167	139.469
		Interest Income	0.007	0.005
		Other Income	0.044	0.077
		Commission and Incentive	2.725	0.823
		Dividend	0.007	0.000
		TOTAL (A)	160.950	140.374
Less	EXPENSES
		Purchase of material and services	145.051	131.890
		Administrative expenses	11.671	6.760
		Selling and distribution expenses	0.189	0.163
		Directors remuneration	1.440	0.690
		Preliminary expenses written off	0.002	0.002
		Inventory change	(5.177)	(3.798)
		TOTAL (B)	153.176	135.707
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.774	4.667
Less	FINANCIAL EXPENSES (D)		2.996	1.378
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.778	3.289
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.228	2.192
	PROFIT BEFORE TAX (E-F) (G)		1.550	1.097
Less	TAX (H)		0.214	0.124
	PROFIT AFTER TAX (G-H) (I)		1.336	0.973
Less	PRIOR YEAR ADJUSTMENT		0.000	0.384
	DEFERRED TAX LIABILITY		0.130	0.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.392	1.203
	BALANCE CARRIED TO THE B/S		2.598	1.392
	Earnings Per Share (Rs.)		5.344	3.892

Particulars	31.03.2011	31.03.2010	31.03.2009
Sales Turnover (Approximately)	260.000	220.000	180.000

Expected Sales (2011-12): Rs.350.000 Millions

The above information has been parted by Mr. Mehul.

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007
PAT / Total Income	(%)	0.83	6.77
Net Profit Margin (PBT/Sales)	(%)	0.97	0.78
Return on Total Assets (PBT/Total Assets}	(%)	2.90	2.17
Return on Investment (ROI) (PBT/Networth)		0.16	0.32
Debt Equity Ratio (Total Liability/Networth)		4.48	13.72
Current Ratio (Current Asset/Current Liability)		1.84	1.42

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2008 (Rs. in millions)	31.03.2007 (Rs. in millions)
Sundry Creditors
Creditors For Services	0.058	0.115
Creditors For Goods	7.741	12.921
Total	7.799	13.036

Note: The registered office of the company has been shifted from 27 Tinwala Building, Off Lamington Road, Tribhuvan Lane, Behind Dreamland Cinema, Mumbai, Maharashtra, India to the present address w.e.f. 15.02.2008.

Operating Results:

During the year the company has incurred profit of Rs.1.336 millions after provision of income tax.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10103976
Corporate identity number of the company	U72900MH2000PTC129795
Name of the company	NETWORK TECHLAB (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit-41, Near Paper Box Company, Sarvodaya Industrial Estate, Mahakali Caves Road, Andheri (E), Mumbai-400093, Maharashtra, India
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	NKGSB Co-Operative Bank Limited, Laxmi Sadan, 361, V.P. Road, Girgaum, Mumbai-400004, Maharashtra, India
Email	cmd@nkgsb-bank.com
Nature of description of the instrument creating or modifying the charge	Composite Hypothecation Agreement
Date of instrument Creating the charge	30.03.2011
Amount secured by the charge	Rs.30.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of Interest @13.50% p.a. or at such other rate, as may be decided, from time to time, by the Bank. Margin Margin :- 25% on Stock 40% on book-debts upto 90 days Extent and Operation of the charge To secure the due repayment of Cash Credit facility of Rs.30.000 Millions (enhanced from Rs.20.000 Millions), together with interest, and/or charges, expenses, etc., thereon, granted by the Bank to the Company.
Short particulars of the property charged	I) All, present and future, stocks and consumables of the Company, II) All, present and future, book debts, outstanding monies,receivables,claim,bills,contracts,securities,investments,rights and assets of the Company III) All such other goods, movable properties/consumer durables and other assets of the Company.
Date of latest modification prior to the present modification	13.10.2008
Particulars of the present modification	By this modification, an additional Cash Credit facility of Rs.10.000 Millions has been granted by the Bank to the Company. Hence, this charge has been enhanced from Rs.20.000 Millions to Rs.30.000 Millions. Therefore, the overall charge now stands at Rs.30.000 Millions.

Fixed Assets:

• Computer
• Printer
• Scanner
• Compaq Note Book
• Monitor
• Cable Modem
• C D Writer
• Air Condition
• Furniture and Fixtures
• UPS
• Switch
• Telephone and Mobile
• Computer Software
• Motor Van
• Office Premises
• Plasma

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.44.90
UK Pound	1	Rs.72.54
Euro	1	Rs.63.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.