MIRA INFORM REPORT

Report Date :

20.10.2011

IDENTIFICATION DETAILS

Name :	NETRACK ENCLOSURES PRIVATE LIMITED
Registered Office :	SY No. 130, KI-NO 248/1, Machohalli Cross, Magadi Main Road, Bangalore -560091, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.04.2002
Com. Reg. No.:	08-030378
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U28932KA2002PTC030378
TAN No.: [Tax Deduction & Collection Account No.]	BLRN01601F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Network and Server Rack
No. of Employees :	74 (Office-23, Factory- 51)

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 157276
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. 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 :	Mr. Prabhu
Designation :	Marketing Manager
Name :	Mr. Raviraj
Designation :	Director
Contact No.:	91-9243441462
Date :	19.10.2011

LOCATIONS

Registered Office /Factory :	SY No. 130, KI-NO 248/1, Machohalli Cross, Magadi Main Road, Bangalore -560091, Karnataka, India
Tel. No.:	91-80-30719172/3/4
Fax No.:	91-80-30719190
E-Mail :	ravi@netrackindia.com
Website :	www.netrackindia.com
Area :	10300 sq. ft.
Location :	Owned

DIRECTORS

AS ON 15.09.2010

Name :	Mr. Ravi Raj Udayavar
Designation :	Managing Director
Address :	194, 2^nd Main, 3^rd Cross, Teachers Layout, Nagarabhavi, Banglore -560072, Karnataka, India
Date of Birth/Age :	18.04.1967
Date of Appointment :	30.03.2002

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	U28932KA2002PTC030378	NETRACK ENCLOSURES PRIVATE LIMITED	Managing director	17/04/2002	17/04/2002	-	Active	NO

Name :	Mr. Vidyavar Rajaram
Designation :	Director

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	U28932KA2002PTC030378	NETRACK ENCLOSURES PRIVATE LIMITED	Director	19/12/2003	19/12/2003	-	Active	NO

Name :	Mr. Udyavara Nagaraj
Designation :	Director
Address :	194, 2^nd Main, 3^rd Cross, Teachers Layout, Nagarabhavi, Banglore -560072, Karnataka
Date of Birth/Age :	31.10.1965
Date of Appointment :	30.03.2002

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	U28932KA2002PTC030378	NETRACK ENCLOSURES PRIVATE LIMITED	Director	17/04/2002	17/04/2002	-	Active	NO

Name :	Ms. Anuradha Sudhakar Rao
Designation :	Director
Address :	194, 2nd Main, 3rd Cross, Teachers Layout, Nagarabhavi, Banglore -560072, Karnataka
Date of Birth/Age :	10.11.1974
Date of Appointment :	01.04.2006

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	U28932KA2002PTC030378	NETRACK ENCLOSURES PRIVATE LIMITED	Director	01/04/2006	01/04/2006	-	Active	NO

Name :	Ms. Shridevi
Designation :	Director
Address :	194, 2nd Main, 3rd Cross, Teachers Layout, Nagarabhavi, Banglore -560072, Karnataka
Date of Birth/Age :	29.12.1972
Date of Appointment :	01.04.2006
Partnership held in Partnership Firm:	Racks and Accessories Inc No. 555, 4^th ‘A’ Cross, Health Layout, Srigandhadakavalu, Magadi Main Road, Banglore-560091, Karnataka- ka, India.

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	U28932KA2002PTC030378	NETRACK ENCLOSURES PRIVATE LIMITED	Director	01/04/2006	01/04/2006	-	Active	NO

Name :	Ms. Chandrika Bollaje
Designation :	Director
Address :	No. 194, 3^rd Cross, 11^th Main, Teachers Layout, Nagarabhavi, Banglore -560072, Karnataka.
Date of Birth/Age :	14.02.1977
Date of Appointment :	01.04.2006

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	U28932KA2002PTC030378	NETRACK ENCLOSURES PRIVATE LIMITED	Director	01/04/2006	01/04/2006	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 15.09.2010

Names of Shareholders	No. of Shares
Ravi Raj Udayavar	26647
Udayavar Nagaraju	28156
Rajaram V	26447
Anuradha	6500
Shridevi	6500
Chandrika Bollaje	5750
Total	100000

AS ON 15.09.2010

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

BUSINESS DETAILS

Line of Business :	Manufacturer of Network and Server Rack
Products :	Network and Server Rack and Rack Accessories

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· End Users

No. of Employees :

74 (Office-23, Factory- 51)

Bankers :

State Bank of India, Industrial Estate Branch, Rajajinagar, Bangalore- 560044, Karnataka, India

Facilities :

Secured Loans:	As on 31.03.2008
ICICI Bank car loan	0.557
SBI Term Loan 1044157784	0.254
SBI Term Loan 30021054164	3.223
State Bank Of India (Overdraft A/c)	4.813
Axis Bank Limited Skoda Loan	1.045
Total	9.892

Banking Relations :
Auditors :
Name :	N N Yuvraj And Associates Chartered Accountant
Address :	No.23, 3 rd Floor, Park Road, Off Queens Road, Bangalore -560051, Karnataka-KA, India

CAPITAL STRUCTURE

AS ON 10.08.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs. 100/- Each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs. 100/- Each	Rs. 2.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		10.000	10.000	2.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		29.319	22.977	16.981
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		39.319	32.977	19.481
LOAN FUNDS
1] Secured Loans		17.720	14.650	9.892
2] Unsecured Loans		11.660	10.150	4.300
TOTAL BORROWING		29.380	24.800	14.192
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		68.699	57.777	33.673
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		45.463	33.474	15.482
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	9.871	6.994	4.859
	Sundry Debtors	31.965	24.409	21.102
	Cash & Bank Balances	0.766	0.138	0.092
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6.469	6.095	6.111
Total Current Assets		49.071	37.636	32.164
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors			0.000
	Other Current Liabilities	25.835	13.336	13.981
	Provisions			0.000
Total Current Liabilities		25.835	13.336	13.981
Net Current Assets		23.236	24.300	18.183
MISCELLANEOUS EXPENSES		0.000	0.003	0.008
TOTAL		68.699	57.777	33.673

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	135.963	111.769	107.631
		Other Income	2.181	0.635	0.590
		TOTAL (A)	138.144	112.404	108.221
Less	EXPENSES
		Material Consumed	84.685	69.445	69.220
		Direct Expenses	7.852	5.509	5.006
		Indirect Expenses	29.821	23.416	21.588
		Preliminary Expenses	0.003	0.003	0.005
		TOTAL (B)	122.361	98.373	95.819
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.783	14.031	7.016
Less	FINANCIAL EXPENSES (D)		2.935	2.125	1.218
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.848	11.906	5.798
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.570	2.929	2.693
	PROFIT BEFORE TAX (E-F) (G)		8.278	8.977	8.491
Less	TAX (H)		1.935	2.770	2.587
	PROFIT AFTER TAX (G-H) (I)		6.343	6.207	5.904

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.59	5.52	5.46
Net Profit Margin (PBT/Sales)	(%)	6.09	8.03	7.89
Return on Total Assets (PBT/Total Assets}	(%)	8.76	12.62	17.82
Return on Investment (ROI) (PBT/Networth)		0.21	0.27	0.43
Debt Equity Ratio (Total Liability/Networth)		1.40	1.15	1.45
Current Ratio (Current Asset/Current Liability)		1.90	2.82	2.30

LOCAL AGENCY FURTHER INFORMATION

Operations:

During the year the company has achieved a turnover of Rs.107.632 millions. The company hopes to improve its results in the ensuring year.

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

Bankers Charges Report as per Registry

Name of the company	NETRACK ENCLOSURES PRIVATE LIMITED
Presented By	STATE BANK OF INDIA, Rajajinagar Industrial Estate Branch, Rajajinagar, Bangalore- 560044. and NETRACK ENCLOSURES PRIVATE LIMITED
1) Date and description of instrument creating the change	Date: 04.08.2005. (4^th day of August, 2005) Agreement of Loan –cum- Hypothecation. SME-2.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 14.800 Millions [C.C. Hyp of Sts- Rs. 0.500 Millions, TL 3 – Rs. 5.300 Millions and One Time LC Limit for Import of Machinery- Rs. 6.600 Millions ].
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All Present and Future Stocks, Raw Materials, Goods, Books Debts and Vehicles and all Other Movable Assets of the Borrower(s) including Receivables, Documents of Title to Goods, Outstanding Moneys, Bills, Invoices, Documents, Contracts, Insurance Policies, Guarantees, Engagements, Securities, Investments and Right and the Present Machinery listed in the Schedule- B hereunder and all the Future Machinery belonging to or in the possession or control of the Borrower(s) of the bank or of any third party whether in India or elsewhere including all such goods, vehicles and other movable assets as may be in the course of shipment, transit or delivery and all machinery, vehicles and other equipments items of whatever nature acquired by the borrower(s) pursuant or subsequent to these presents hereby agreed to be furnished in Form SME – 2A (hereinafter collectively referred to as “said assets” ) stand hypothecated to the Bank by way of FIRST CHARGE. Stocks consisting of steel, Aluminium and Glass, Sheets, Channels, Racks, Electric Items.
4) Gist of the terms and conditions and extent a nd operation of the charge.	Rate of Interest: 25 Above SBAR; Effective Rate 12.25% per annum with periodical rests and / or at such rate/s and rests as may be specified by the Bank from time to time. Margin: 25% on RM (Indigeneous) /SFG/ FG/ Components/ Consumables/ Spares/ TL/ LC/ Domestic Receivables. Repayment: CC- On Demand. Term Loan 1- In 33 Monthly Instalments of Rs. 14250/- each commencing from August, 2005. Term Loan 2- In 79 Monthly Instalments. First 24 Instalments of Rs. 0.050 Millions each, Next 24 Instalments of Rs. 0.070 Millions each and next 30 Instalments of Rs. 0.080 Millions each commencing from February, 2006.
5) Name and Address and description of the person entitled to the charge.	STATE BANK OF INDIA, Rajajinagar Industrial Estate Branch, Rajajinagar, Bangalore- 560044. ( A Banking Company)
6) Date and brief description of instrument modifying the charge	Date: 21.01.2006. (21 st of January, 2006). Supplemental Agreement of Loan- cum- Hypothecation.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	By the above, the amount secured by the charge stands INCREASED from Rs.14.800 Millions to Rs. 16.800 Millions. [C.C. Hyp of Sts- Rs. 0.500 Millions, C.C. Hyp of Rec- Rs. 1.000 Millions TL 1- Rs. 0.400 Millions ,TL 2- Rs. 1.000 Millions, TL 3 – Rs. 5.300 Millions, One Time LC Limit for Import of Machinery – Rs. 6.600 Millions and B. G – Rs. 2.000 Millions]. Rate of Interest and other terms and conditions as applicable and as advised by the Bank from time to time for the respective facilities. Repayment; CC – ON Demand, TL 1, 2 and 3- As per Old form 08 and 13. Security of stocks, Goods, Book Debts, Receivables, Other Movable Assets, Plant and Machinery etc. Already obtained and now obtained both present and future are available for the entire credit facilities of Rs. 16.800 Millions by way of FIRST CHARGE.

Corporate identity number of the company	U28932KA2002PTC030378
Name of the company	NETRACK ENCLOSURES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	130, KI-NO 248/1, Machohalli Cross, Magadi Main Road, Bangalore -560091, Karnataka
This form is for	Modification of charge
Charge identification number of the modified	90195893
Type of charge	Book Debts Movable Property Floating Charge Immovable Property
Particular of charge holder	State Bank Of India, Industrial Estate Branch, Rajajinagar, Bangalore- 560044, Karnataka, India Email: surevict@gmail.com
Nature of description of the instrument creating or modifying the charge	Supplemental agreement of loan cum hypothecation form SME - 4 and letter of confirmation for extension of mortgage by deposit of title deeds covering enhanced limits and / or creation of equitable mortgage on additional properties for securing the existing limits and enhanced limits and additional facilities SME -8 (both pertain to the same charge)
Date of instrument Creating the charge	Rs.15.01.2010
Amount secured by the charge	Rs.25.400 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1). WCL- AT 0.25% above SBAR, effective rate 12.00% p.a. at monthly rests. 2). TL- AT 0.75% ABOVE SBAR, effective rate 12.50% p.a. at monthly rests. PENAL INT : MAX 2% P.A. over the normal rate.terms of repayment Margin M/SFG/FG/RECEIVABLES : 25%, CCS : 100% BG : 25%, Term Loan : 31.82% Extent and Operation of the charge Exclusive first charge on the assets of the company and to the full extent Others Cc (stock) Rs 4.500 Millions, CC (receivables) Rs. 3.000 Millions, term loan-1 Rs 3.200 Millions, term loan-2 Rs 0.200 Millions, term loan-3 Rs 5.000 Millions, term loan new Rs 7.500 Millions, BG Rs 2.000 Millions, total Rs 25.400 Millions.
Short particulars of the property charged	Hypo. of company's present and future movable fixed assets and current assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights, stores, components, furniture and fittings; other movables, plant and machinery, vehicles and assets to be purchased out of bank finance Em of immovable property situated at industrial plot bearing no.429 formed out of Sy.no.46 of Nellakadaranahalli Village, Yeshwanthpur Hobli, Bangalore North TQ
Date of latest modification prior to the present modification	09.10.2009
Particulars of the present modification	The amount secured by the charge stands increased to Rs. 25.400 millions The securities described and detailed in col no 15 herein above continue for the enhanced limits. All other terms and conditions remain unchanged

FIXED ASSETS:

• Furniture
• Fittings and Electrical Fittings
• Plant and Machinery,
• Motor Cars
• Computers
• Software
• Books

Trade Reference:

· HP/ IBM

· Wipro

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.49.17
UK Pound	1	Rs.77.49
Euro	1	Rs.67.96

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--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	NO
--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.