MIRA INFORM REPORT

Report Date :

03.04.2012

IDENTIFICATION DETAILS

Name :	INNOVATIVE SYSTEMS AND SOLUTIONS PRIVATE LIMITED
Registered Office :	Rupasee 267, Jagannath Shankarsheth Road, Gigaon, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.04.2005
Com. Reg. No.:	11-152664
Capital Investment / Paid-up Capital :	Rs.1.000 Million
CIN No.: [Company Identification No.]	U32300MH2005PTC152664
TAN No.: [Tax Deduction & Collection Account No.]	MUMI06611D
Legal Form :	Private Limited Liability Company
Line of Business :	Trader, Exporter and Importer of audio video and lighting equipments.
No. of Employees :	60 [Approximately]

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 39312
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.

INFORMATION PARTED BY

Name :	Ms. Ajita
Designation :	Executive Assistant of Managing Director
Contact No.:	91-22-66213400
Date :	03.04.2012

LOCATIONS

Registered Office :	Rupasee 267, Jagannath Shankarsheth Road, Gigaon, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-66213400 / 66213440 / 66213450 / 65299840
Fax No.:	91-22-66213500 / 23887740
E-Mail :	ratnesh.javeri@isspl.in
Website :	http://www.isspl.in
Location :	Owned
Corporate Office :	Ground Floor, Mafatlal Building, Dr. Ambedkar Road, Parel – East, Mumbai – 400012, Maharashtra, India
Warehouse:	Located at: Bhiwandi, Maharashtra, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Ratnesh Neelratna Javeri
Designation :	Managing director
Address :	Sanghvi Mansion, Block No. 1, 267, J.S.S. Road, Girgaon, Mumbai – 400004, Maharashtra, India
Date of Birth/Age :	26.09.1965
Date of Appointment :	01.05.2005
DIN :	01180023
Name :	Mr. Godfrey Thomas Dsa
Designation :	Director
Address :	Ashok Nagar, Building, D-4 CHS, 603, Off, Military Road, Marol, Andheri (East), Mumbai – 400072, Maharashtra, India
Date of Birth/Age :	22.09.1963
Date of Appointment :	15.04.2005
DIN :	02749581
Name :	Mr. Claron Hubert Dsouza
Designation :	Director
Address :	7/16, Arvind Nagar, Kalina, Santacruz (East), Mumbai – 400029, Maharashtra, India
Date of Birth/Age :	22.11.1969
Date of Appointment :	15.04.2005
DIN :	02749609

KEY EXECUTIVES

Name :	Ms. Ajita
Designation :	Executive Assistant of Managing Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ratnesh Neelratna Javeri	7600
Godfrey Thomas Dsa	1200
Claron Hubert Dsouza	1200
Total	10000

As on 30.09.2011

Equity Share Break Up Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader, Exporter and Importer of audio video and lighting equipments.
Exports :
Products :	Audio video and lighting equipments.
Countries :	· Singapore · Dubai · United States America
Imports :
Products :	Audio video and lighting equipments.
Countries :	· China · Germany
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers

No. of Employees :

60 [Approximately]

Bankers :

Bank of India, Girgaum Branch, 281,J.S.S. Road, Bhimrao House,Girgaum, Mumbai – 400004, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Term loan with Bank of India [against hypothecation of fixed assets and personal guarantee of directors] [amount due within 1 year Rs.0.844 million]	0.844	2.444
Cash Credit with Bank of India [against hypothecation of stock in trade and sundry debtors and personal guarantee of directors]	24.720	18.724
Total	25.564	21.168
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Loan from Directors	2.622	4.333
Total	2.622	4.333

Banking Relations :	--
Auditors :
Name :	GPS and Associates Chartered Accountants
Address :	A-1, Sindhi Niwas, Sitladevi Temple Road, Mahim [West], Mumbai – 400016, Maharashtra, India
PAN :	AADFG4422H
Sister Concern :	· Innovative Systems · Innovative Solutions · Innovative Integrated Systems

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs.100/- each	Rs.1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs.100/- each	Rs.1.000 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		1.000	1.000	1.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.828	7.535	8.042
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9.828	8.535	9.042
LOAN FUNDS
1] Secured Loans		25.564	21.168	20.544
2] Unsecured Loans		2.622	4.333	5.841
TOTAL BORROWING		28.186	25.501	26.385
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		38.014	34.036	35.427
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.953	7.295	8.824
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.011
DEFERREX TAX ASSETS		0.466	0.870	0.588
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.251	9.334	6.284
	Sundry Debtors	23.492	23.426	18.644
	Cash & Bank Balances	1.996	0.480	1.473
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.695	4.204	2.638
Total Current Assets		42.434	37.444	29.039
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.388	3.391	2.108
	Other Current Liabilities	6.916	7.886	0.798
	Provisions	0.535	0.296	0.129
Total Current Liabilities		10.839	11.573	3.035
Net Current Assets		31.595	25.871	26.004
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		38.014	34.036	35.427

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	68.911	42.332	63.547
		Other Income	0.741	0.033	0.205
		TOTAL (A)	69.652	42.365	63.752
Less	EXPENSES
		Purchase and other Direct Expenses	38.421	21.748	39.262
		Administrative, Selling and Distribution Expenses	21.496	14.468	19.001
		TOTAL (B)	59.917	36.216	58.263
	PROFIT/[LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.735	6.149	5.489
Less	FINANCIAL EXPENSES (D)		5.549	5.048	5.178
	PROFIT/[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.186	1.101	0.311
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.800	1.879	2.249
	Prior Period Expenses		[0.227]	0.000	0.000
	PROFIT / [LOSS] BEFORE TAX (E-F) (G)		2.159	[0.778]	[1.938]
Less	TAX (H)		0.866	0.271	0.307
	PROFIT / [LOSS] AFTER TAX (G-H) (I)		1.293	[0.507]	[1.631]
	EARNINGS IN FOREIGN CURRENCY
		Commission Earnings	11.665	5.838	2.239
	TOTAL EARNINGS		11.665	5.838
	Earnings/[Loss] Per Share (Rs.)		129.34	[50.70]	[163.12]

Expected Sales (2011-2012) : Rs.80.000 millions

The above information has been parted by Ms. Ajita [Executive Assistant of Managing Director]

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.86	[1.20]	[2.56]
Net Profit Margin (PBT/Sales)	(%)	3.13	[1.84]	[3.05]
Return on Total Assets (PBT/Total Assets}	(%)	4.46	[1.74]	[5.12]
Return on Investment (ROI) (PBT/Networth)		0.22	[0.09]	[0.21]
Debt Equity Ratio (Total Liability/Networth)		3.97	4.34	3.25
Current Ratio (Current Asset/Current Liability)		3.91	3.23	9.57

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors for Goods
Due to micro, small and Medium Enterprises	-	-	-
Due to others	1.986	2.927	1.222
Sundry Creditors for Expenses
Due to micro, small and Medium Enterprises	-	-	-
Due to others	1.402	0.464	0.886
Total	3.388	3.391	2.108

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	-
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	No
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	No
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	No
Incorporation details, if applicable	-
Last accounts filed at ROC	-
Major Shareholders, if applicable	-

Financial Highlights :

During the financial year, the company has earned a net profit after tax of Rs.1.293 millions

Nature of Operations :

Subject is in the business of system integration of audio, video lighting equipments. ISSPL is engaged in sale of equipments, and also support/repair services relating to these equipments. The company is certified under ISO 9001:2008

Bankers Charges Report as per Registry

Corporate identity number of the company	U32300MH2005PTC152664
Name of the company	INNOVATIVE SYSTEMS AND SOLUTIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Rupasee 267 Jagannath Shankarsheth Road, Girgaon, Mumbai – 400004, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10040818
Type of charge	Book Debts Movable Property
Particular of charge holder	Bank of India, Girgaum Branch, 281,J.S.S. Road, Bhimrao House,Girgaum, Mumbai – 400004, Maharashtra, India Email : info@ca-adlalwani.com
Nature of instrument creating charge	1.Third Supplemental Deed of Hypothecation 2.Bank Letter (All The Above Agreement Constitute A Single Charge)
Date of instrument Creating the charge	26.07.2010
Amount secured by the charge	Rs.35.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - as stipulated by bank from time to time Terms of Repayment - as stipulated by bank from time to time Margin - as stipulated by bank from time to time Extent and Operation of the charge – First charge (present and future)-total limit Rs.35.000 millions (1. Cash credit (stock and book debts) = Rs.20.000 millions (2) channel credit = Rs.7.500 millions (3)foreign/inland bills purchase/negotiation = Rs.7.500 millions = (max 1 to 3) = Rs.20.000 millions (4) LC = Rs.5.000 millions (5) inland guarantee s. 15.000 millions = (max 4 to 5)= Rs.15.000 millions And/or as stipulated by bank from time to time Others - as stipulated by bank from time to time and as per agreement attached
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First Charge (Present and Future on All Assets Mentioned Beolw) - Hypothecation of All Stock / Goods / Inventories / Products Kept At Borrower Place / Premises / Factories / Godowns or Whereeverelse or In Transit Including Brought Under L.C Hypothecation of All Book Debts and Receivables
Particulars of the present modification	By this modification limit stands to Rs.35.000 millions (1) cash credit (stock and book debts) = Rs.20.000 millions (2) channel credit = Rs.7.500 millions (3)foreign/inland bills purchase/negotiation = Rs.7.500 millions (max 1 to 3) = Rs.20.000 millions, (4.)LC = Rs.5.000 millions (5)B.G.= Rs.15.000 lakh S = (max 4 to 5) = Rs.15.000 millions by this modification C.C.-stock and book debts limits are realigned, securities are continued as given by original charge as well as by modifications, terms and conditions as per agreement attached .

FIXED ASSETS :

§ Plant and Machinery

§ Leasehold Improvements

§ Electrical Installations

§ Furniture and Fixtures

§ Computer

§ Office 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 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.51.15
UK Pound	1	Rs.81.79
Euro	1	Rs.68.34

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.