MIRA INFORM REPORT

Report Date :

14.03.2011

IDENTIFICATION DETAILS

Name :	NEC INDIA PRIVATE LIMITED
Registered Office :	Block C-1, First Floor, Plot No.1 and 2, Ishwar Nagar, Okhla Crossing, New Delhi – 110 020
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	01.08.2006
Com. Reg. No.:	55-151472
CIN No.: [Company Identification No.]	U72300DL2006FTC151472
Legal Form :	Private Limited Liability Company
Line of Business :	Trading of Computer and Related Items.

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 1784000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a part of NEC Group, worldwide. The company has turned the corner during the year under report and was successful in wiping off all its previous losses. Trade relations are reported as slow but correct. The company can be considered 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 DECLINED BY

Management non-cooperative

LOCATIONS

Registered/ Corporate Office :	Block C-1, First Floor, Plot No.1 and 2, Ishwar Nagar, Okhla Crossing, New Delhi – 110 020, India
Tel. No.:	91-11-61101000/ 46570000
Fax No.:	91-11-61101001/ 46570001
E-Mail :	enquiries@necindia.in mayurbatra_ca@rediffmail.com
Website :	http://www.necindia.in
Branch Office 1 :	Unit No-1003-1004, 10^th Floor, Prestige Meridian-II , No-30, M.G. Road, Bangalore – 560 001, Karnataka, India
Tel. No.:	91-80-40004600
Branch Office 2 :	1^stFloor, RR Towers III, Thiru-vi-ka Industrial Estate, Guindy, Chennai - 600 032, Tamilnadu, India
Tel. No.:	91-44-4296 5600
Branch Office 3 :	4th Floor, 215 Atrium, Kankia Spaces, Andheri- Kurla Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
Tel. No.:	91-22-61435900

DIRECTORS

As on 30.09.2010

Name :	Mr. Koji Oda
Designation :	Managing Director
Address :	22-55, Kotobuki 2-Chome, Abiko City, Chiba, Japan, 2701152, Japan
Date of Birth/Age :	02.07.1954
Qualification :	Bachelor of Art
Experience :	33 Years
Date of Appointment :	26.05.2008
DIN No.:	02237458
Name :	Mr. Kiyofumi Kusaka
Designation :	Director
Address :	410, 123 Takinoue, Naka-Ku, Yokohama, Kanagawa, 2310837, Japan
Date of Birth/Age :	09.10.1957
Date of Appointment :	12.07.2007
DIN No.:	01691979
Name :	Mr. Shintaro Miki
Designation :	Director
Address :	6, Marina Boulvard #14-19, The Sail@marina Bay, Singapore – 018985
Date of Birth/Age :	11.11.1963
Date of Appointment :	30.09.2010
DIN No.:	03144620
Name :	Mr. Haruo Takahashi
Designation :	Additional Director
Address :	6-13-17, Kajigaya, Takatsu-Ku, Kawasaki-Shi, Kanagawa, 2130015, Japan
Date of Birth/Age :	01.04.1956
Date of Appointment :	29.05.2009
Date of Ceasing :	17.05.2010
DIN No.:	02691688
Name :	Mr. Toru Kawauchi
Designation :	Additional Director
Address :	2-34-14, Takamori, Isehara-Shi, Kanagawa, 2591114, Japan
Date of Birth/Age :	02.10.1960
Date of Appointment :	29.05.2009
Date of Ceasing :	17.05.2010
DIN No.:	02691711

KEY EXECUTIVES

Name :	Mr. Rajeev Sehgal
Designation :	Head – Finance and Company Secretary
Address :	B-208, Ashok Vihar, Phase IV, New Delhi – 110 052, India
Date of Birth/Age :	06.01.1969
Qualification :	CA+CS
Experience :	16+ Years
Date of Appointment :	01.08.2006
Name :	Nobuki Aklnaga
Designation :	Deputy to Managing Director
Name :	Takayuki Kano
Designation :	Deputy to Managing Director
Name :	Mr. Suresh M.S.
Designation :	Head IPLO – ITS India
Name :	Mr. Abhilesh Gulerla
Designation :	Country Sales Manage – IT Platform Business
Name :	Mr. Vikas Singh
Designation :	General Manager – Services and SI
Name :	Mr. Rajiv Bhatia
Designation :	General Manager – Marketing
Name :	Mr. Amitabh Kumar
Designation :	Head – HR
Name :	Mr. Ravinder Raina
Designation :	Head – PNS Business
Name :	Mr. David Arambhan
Designation :	Head – Retail Solution
Name :	Mr. Rajan Chopra
Designation :	General Manager
Name :	Mr. Arjun Kathuria
Designation :	General Manager
Name :	Mr. Ashutosh Zutshi
Designation :	Head – Sales and Marketing
Name :	Mr. Santosh Pandey
Designation :	Head – Telecom Projects
Name :	Mr. Msn Murthy
Designation :	Head – Projects (West and South)
Name :	Mr. Balamurgan Palaniswamy
Designation :	Deputy Head – Projects
Name :	Mr. Saurabh Srivastva
Designation :	Head – Center of Excellence

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
NEC Asia Pte. Limited, Singapore	5640000
NEC Corporation Limited, Japan	24760000
Total	30400000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00

BUSINESS DETAILS

Line of Business :

Trading of Computer and Related Items.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

Bank of Tokyo

Facilities :

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Short Term Loan from Bank	30.000	0.000
Total	30.000	0.000

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	Building No.10, 8^th Floor, Tower B, DLF Cyber City, Phase – II, Gurgaon – 122 002, Haryana, India
Tel. No.:	91-124-2549191
Fax No.:	91-124-2549101
Holding Company :	NEC Corporation Limited Address: 7-1, Chiba 5 – Chome, Minato-Ku, Tokyo, Japan
Fellow Subsidiaries :	NEC Asia Pte. Limited, Singapore NEC Corporation of America NEC Corporation NEC Infrontia Corporation NEC Solutions Vietnam Company Limited NEC UK Limited NEC Display Solutions NEC Corporation Malaysia Solution NEC Networks and System Integration International Communication Planning Company Limited NESIC Philippines, Inc. Xian NEC Radio Communications Equipment Company Limited NECARE Center

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
55000000	Equity Shares	Rs.10/- each	Rs.550.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30400000	Equity Shares	Rs.10/- each	Rs.304.000 millions

Out of the above, 24760000 equity shares are held by NEC Corporation, Japan, the holding company. Balance 5640000 shares are held by NEC Asia Pte. Limited. The ultimate holding company is NEC Corporation, Japan.

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		304.000	304.000	44.000
2] Share Application Money		0.000	0.000	30.000
3] Reserves & Surplus		142.037	0.000	0.000
4] (Accumulated Losses)		0.000	(107.543)	(50.914)
NETWORTH		446.037	196.457	23.086
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		30.000	0.000	15.000
TOTAL BORROWING		30.000	0.000	15.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		476.037	196.457	38.086
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22.165	17.700	13.989
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		9.858	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51.873	22.677	4.716
	Sundry Debtors	1357.907	187.648	39.243
	Cash & Bank Balances	46.228	157.502	35.956
	Other Current Assets	3.386	0.000	0.000
	Loans & Advances	66.322	29.913	7.567
Total Current Assets		1525.716	397.740	87.482
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	975.103	201.206	58.695
	Other Current Liabilities	72.711	14.318	3.160
	Provisions	33.888	3.459	1.530
Total Current Liabilities		1081.702	218.983	63.385
Net Current Assets		444.014	178.757	24.097
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		476.037	196.457	38.086

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Services	2553.231	546.250	200.117
		Other Income	22.781	1.416
		TOTAL (A)	2576.012	547.666	200.117
Less	EXPENSES
		Cost of Goods Sold	1338.995	340.504	231.821
		Personnel Expenses	226.016	94.109
		Operating Expenses	675.836	161.128
		Prior Period Expenses – Service Tax	0.000	0.893
		TOTAL (B)	2240.847	596.634	231.821 (including depreciation and interest)
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		335.165	(48.968)
Less	INTEREST ON BANK LOAN (D)		1.626	0.682
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		333.539	(49.650)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.042	5.024
	PROFIT BEFORE TAX (E-F) (G)		323.497	(54.674)	(31.704)
Less	TAX (H)		73.917	1.954	0.689
	PROFIT AFTER TAX (G-H) (I)		249.580	(56.628)	(32.393)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(107.542)	(50.914)	NA
	BALANCE CARRIED TO THE B/S		142.038	(107.542)	NA
	EARNINGS IN FOREIGN CURRENCY
		Service Income	7.115	9.516	5.316
		Commission Income	235.084	69.871	7.225
		Management Support Fee	39.083	50.794	12.452
		Reimbursement of Expenses	3.542	3.414	0.000
	TOTAL EARNINGS		284.824	133.595	24.993
	IMPORTS
		Capital Goods	0.112	1.656	1.689
	TOTAL IMPORTS		0.112	1.656	1.689
	Earnings Per Share (Rs.)		8.21	(3.52)	(7.36)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	9.69	(10.34)	(16.19)
Net Profit Margin (PBT/Sales)	(%)	12.67	(10.01)	NA
Return on Total Assets (PBT/Total Assets}	(%)	20.90	(13.16)	(31.24)
Return on Investment (ROI) (PBT/Networth)		0.73	(0.28)	(1.37)
Debt Equity Ratio (Total Liability/Networth)		2.49	1.11	3.40
Current Ratio (Current Asset/Current Liability)		1.41	1.82	1.38

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
- Total outstanding dues to micro and small enterprises	--	--	--
- Total outstanding dues of creditors other than micro and small enterprises	975.103	201.206	58.695

Note:

The registered office of the company has been shifted from 2^nd Floor, A-19, Kailash Colony, New Delhi – 110 048 to the present address w.e.f. 28.11.2006.

FIXED ASSETS:

· Leasehold Improvements

· Office Equipments

· Furniture and Fixtures

· Computers

· Test Equipments

· Vehicles

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 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.45.21
UK Pound	1	Rs.72.55
Euro	1	Rs.62.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		37

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.