MIRA INFORM REPORT

Report Date :

04.03.2011

IDENTIFICATION DETAILS

Name :	SIGMA MICROSYSTEMS PRIVATE LIMITED
Registered Office :	D. No.1-46/2, Venkateshwara Colony, Ring road, Uppal, Ranga Reddy District, Hyderabad-500039, Andhra Pradesh.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.02.1996
Com. Reg. No.:	11-023096
CIN No.: [Company Identification No.]	U72200AP1996PTC023096
TAN No.: [Tax Deduction & Collection Account No.]	HYDS13627F
PAN No.: [Permanent Account No.]	AAECS6137R
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Supplier of Embedded systems, embedded boards, test systems PCI cards, compact PCI cards, VME cards etc.

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 15000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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.

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

LOCATIONS

Registered Office :	D. No.1-46/2, Venkateshwara Colony, Ring road, Uppal, Ranga Reddy District, Hyderabad-500039, Andhra Pradesh, India
Tel. No.:	91-40-27205570 TO 76
Fax No.:	91-40-27205573
E-Mail :	sigma@sigmamicrosystems.co.in
Website :	www.sigmamicrosystems.co.in
Branches Located At :	Banglore Delhi Lucknow

DIRECTORS

As On : 23.06.2010

Name :	Mr. Satguru Sharan Baijal
Designation :	Chairman
Address :	B-4, Sector-30, Noida-201303, Uttar Pradesh, India
Date of Appointment :	06.09.2006
DIN No :	00027961
Name :	Mr. Damodhar Reddy Cheemarla
Designation :	Managing Director
Address :	S-6/2-2-12/1/C, Bagh Amberpet, DD Colony, Hyderabad-500044, Andhra Pradesh, India
Date of Appointment :	02.02.1996
DIN No :	01643638
Name :	Mr. Sanjay Pukalay
Designation :	Whole Time Director
Address :	Flat No.201, 2^nd Floor, Royal Mannar Appartment, Barkatpura, Hyderabad-500027, Andhra Pradesh, India
Date of Appointment :	02.02.1996
DIN No :	01643626
Name :	Mr. Virendra Kumar Gupta
Designation :	Director
Address :	116, 1^st Floor, Sidhartha, Enclave, New Delhi-110014, Delhi, India
Date of Appointment :	06.09.2006
DIN No :	00101598
Name :	Mr. Deepak Kumar Sen
Designation :	Whole Time Director
Address :	102/01, Silver Oaks, DLF, Phase-1, Gurgaon-122002, Haryana, India
Date of Appointment :	06.09.2006
DIN No :	00741941

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 23.06.2010

Names of Shareholders	No. of Shares
M/s Rossell Tea Limited, India	562500
Damodhar Reddy Cheemarla	196875
P. V. Sanjay	11250
U. R. Gunti	109375
P. Bhagya	120000
Total	1000000

AS ON 23.06.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		56.25
Directors or relatives of directors		43.75
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Embedded systems, embedded boards, test systems PCI cards, compact PCI cards, VME cards etc.

GENERAL INFORMATION

Bankers :

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India

· Indus In Bank

Facilities :

SECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Cash Credit from Indus In Bank	0.000	6.810
(Secured by hypothecation of Book Debts and Stock and Corporate Guarantee from Rossell Tea Limited)
Total	0.000	6.810

UNSECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Loan from Directors	10.476	10.369
Inter Corporate Deposits	26.447	9.417
Total	36.923	19.786

Banking Relations :	--
Auditors :
Name :	P A Ramaiah Chartered Accountant
Address :	105, Divya Shakti Complex, Ameerpet, Hyderaabad-500016, Andhra Pradesh, India
Holding Company :	Rossell Tea Limited

CAPITAL STRUCTURE

As On : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10/- each	Rs. 15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 10/- each	Rs. 10.000 millions

Note : (of the above 562500 Equity Shares of Rs.10/- each fully paid Holding company, Rossell Tea Limited.)

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		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	1.745	12.250
4] (Accumulated Losses)		(6.045)	0.000	0.000
NETWORTH		3.955	11.745	22.250
LOAN FUNDS
1] Secured Loans		0.000	6.810	0.848
2] Unsecured Loans		36.923	19.786	19.845
TOTAL BORROWING		36.923	26.596	20.693
DEFERRED TAX LIABILITIES		0.408	0.414	0.251
TOTAL		41.286	38.755	43.194
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.511	4.564	4.653
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.143	13.977	8.593
	Sundry Debtors	22.529	17.673	32.716
	Cash & Bank Balances	1.763	2.951	0.920
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.784	10.194	6.517
Total Current Assets		42.219	44.795	48.746
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.472	0.686	0.922
	Other Current Liabilities	4.955	4.482	3.786
	Provisions	0.017	5.436	5.497
Total Current Liabilities		5.444	10.604	10.205
Net Current Assets		36.775	34.191	38.541
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		41.286	38.755	43.194

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	32.723	18.488	38.866
		Other Income	0.456	0.047
		TOTAL (A)	33.179	18.535	38.866
Less	EXPENSES
		Manufacturing Expenses	19.045	10.506
		Employees Remuneration	12.079	14.085
		Increase/(Decrease) in Finished Goods	0.255	(5.984)	33.431
		Administrative Expenses	6.235	8.273
		TOTAL (B)	37.614	26.880	33.431
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(4.435)	(8.345)	5.435
Less	FINANCIAL EXPENSES (D)		2.759	1.693	1.374
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(7.194)	10.038	4.061
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.619	0.468	0.884
Add	PROFIT PERIOD ITEMS		0.017	0.257	0.000
	PROFIT BEFORE TAX (E-F) (G)		(7.796)	(10.249)	3.177
Less	TAX (H)		(0.006)	0.257	1.217
	PROFIT AFTER TAX (G-H) (I)		(7.790)	(10.506)	1.960
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.745	12.250	10.290
	BALANCE CARRIED TO THE B/S		6.045	1.745	12.250
	IMPORT VALUE		12.265	5.174	9.723

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(23.48)	(56.68)	0.05
Net Profit Margin (PBT/Sales)	(%)	(23.82)	(55.44)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(16.68)	(20.76)	5.95
Return on Investment (ROI) (PBT/Networth)		(1.97)	(0.87)	0.09
Debt Equity Ratio (Total Liability/Networth)		10.82	3.20	1.40
Current Ratio (Current Asset/Current Liability)		7.75	4.22	4.78

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

The Directors report increase in Turnover in 2009-2010 over the year 2008-09 by 34% and reduction in loss to the extent of 45% before interest and depreciation. The Loss after Tax has also been reduced by 26% in-spite of increased interest burden during the year.

FUTURE OUTLOOK

The Company is poised for higher turnover with carry over orders on hand along with successful productionisation of the items developed over the earlier years.

FORM 8

Corporate identity number of the company	U72200AP1996PTC023096
Name of the company	SIGMA MICROSYSTEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D. No.1-46/2, Venkateshwara Colony, Ring road, Uppal, Ranga Reddy District, Hyderabad-500039, Andhra Pradesh, India
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India Indus In Bank
Nature of instrument creating charge	1) letter of hypothecation of stocks and book debts 2) memorandum relating to hypothecation of machinery
Date of instrument Creating the charge	27.01.2010
Amount secured by the charge	Rs. 9.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest The Borrower shall pay interest as per Bank's/ RBI Guidelines from time to time. Terms of repayment As stipulated by the bank. Margin Nil Extent and operation of the charge By way of exclusive first charge to the Bank on all the stock in trade both present and future consisting of raw materials, finished goods ,goods in process of manufacturing and consumable, stores and spares etc. and also book debts outstanding moneys, receivables claims bills etc. including plant and machinery both present and future installed at 1-46/2, Venkateshwara Colony, Ring Road, Uppal, Hyderabad-500 039.
Short particulars of the property charged (Including location of the property)	1. Hypothecate by way of exclusive first charge to the Bank all the stock in trade both present and future consisting of raw materials, finished goods ,goods in process of manufacturing and consumable stores, spares and work in progress and other merchandise whatsoever being movable properties now or at any time hereafter belonging to the Borrower or at Borrower's disposal and now or at any time and from time to time hereafter stored or to be stored or brought into or upon or in course of transit to Borrower's factory or premises or at any other place whatsoever and wheresoever’s. And all the Book debts, outstanding moneys receivable claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the Borrower in the course of its business by any person, firm, company or body corporate or by the Government Department or office or any Municipal or Local or Public or Semi Government Body or authority or anybody corporate or undertaking or project whatever in the public sector. 2. Hypothecate by way of Exclusive first charge to the Bank, all the movable plant and machinery both present and future as described in the schedule now stored at or being stored or which may hereafter be brought into or stored at or at present installed at 1-46/2, Venkateshwara Colony, Ring Road, Uppal, Hyderabad-500 039 and also the plant and machinery, which may at any time hereafter belonging to the Borrower or at Borrower's disposal and now or at any time and from time to time hereafter stored or be stored or brought into or upon or in course of transit or awaiting transit by mode of transport to the Borrower's factory or premises or at any other place whatsoever and wheresoever.

FIXED ASSESTS

· Test Equipment

· Electrical Equipment

· Furniture

· Office Equipment

· Computer

· Vehicles

WEB SIDE DETAILS

PROFILE

Sigma Microsystems was formed in the year 1994 by a team of professional engineers with expertise in diverse fields and disciplines with the aim of providing state-of-the-art high quality embedded products and innovative solutions in hardware and software.

Sigma focuses on providing:

Ø Embedded system solutions, with hardware and software, backed by its sound expertise in microprocessors, digital signal processors, VLSI designs and real-time systems

Ø Software solutions on various hardware platforms - Embedded to computers / workstation, either with full-blown operating systems or without any operating system, with complete documentation and IV and V.

Ø Generic, unique as well as tailored end-to-end solutions across a wide spectrum of requirements.

In pursuance of these goals, Sigma has carved a niche for itself in this area of its operations. It is recognized for its technical expertise, responsiveness to customer needs and meeting customer expectations with proven commitment to quality.

Its persistent focus on current technologies has resulted in the delivery of optimal and cost-effective products and services to its esteemed customers. Sigma's clientele includes the cream of Defense R and D and Public / Private Industries.

Today, Sigma is poised for an exponential growth in its chosen field of activity, operating from multiple cities in India, with corporate office, design, development and manufacturing facilities in Hyderabad and regional offices in New Delhi, Bangalore and Lucknow.

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.44.96
UK Pound	1	Rs.73.37
Euro	1	Rs.62.33

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	--
--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	YES
--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.