MIRA INFORM REPORT

Report Date :

04.12.2012

IDENTIFICATION DETAILS

Name :	NET CHECK SOLUTIONS (INDIA) PRIVATE LIMITED
Registered Office :	689/7, Bibweewadi Veerbajipasalkar Nagar, Pune – 411037, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.07.2003
Com. Reg. No.:	11-018095
Capital Investment / Paid-up Capital :	Rs.5.732 Millions
CIN No.: [Company Identification No.]	U72200PN2003PTC018095
TAN No.: [Tax Deduction & Collection Account No.]	PNEN05127D
PAN No.: [Permanent Account No.]	AABCN7781K
Legal Form :	Private Limited Liability Company
Line of Business :	Services Provider of Networking Solution, Communication, System Integration and Automation.
No. of Employees :	44 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 320000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The latest financials of the company are not made available. As per previous year’s, there appears huge external borrowings recorded by the company. However, trade relations are reported as fair. Business is active. Payments terms are unknown in absence of latest financials. 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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SE 3B
Rating Explanation	Moderate performance capability and moderate financial strength.
Date	August 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Ms. Tejaswini
Designation :	Account Executive
Contact No.:	91-20-30201575
Date :	03.12.2012

LOCATIONS

Registered Office :	689/7, Bibweewadi Veerbajipasalkar Nagar, Pune – 411037, Maharashtra, India
Tel. No.:	91-20-30201575
Fax No.:	Not Available
E-Mail :	office@chandakcs.com accounts@netcheckindia.com
Website :	www.netcheckindia.com
Location :	Owned

DIRECTORS

As on: 30.09.2011

Name :	Mr. Mohan Laxmanrao Pasalkar
Designation :	Director
Address :	689/7, Veer Baji Pasalkar Nagar, Aniket Society No.1, Pune - 411037 Maharashtra, India
Date of Birth/Age :	13.10.1968
Date of Appointment :	02.07.2003
DIN No.:	02541164
Name :	Mr. Arvind Laxmanrao Pasalkar
Designation :	Director
Address :	689/7, Veerbaji Pasalkar Nagar, Opposite Aniket Society No.1, Pune - 411037 Maharashtra, India
Date of Birth/Age :	21.03.1972
Date of Appointment :	02.07.2003
DIN No.:	02541185
Name :	Ms. Vaishali Mohan Pasalkar
Designation :	Director
Address :	S. No. 689/7, Bibweewadi, Opposite Aniket Society, Pune - 411037 Maharashtra, India
Date of Birth/Age :	19.05.1972
Date of Appointment :	02.07.2003
DIN No.:	02541242
Name :	Mr. Laxman Ganpatrao Pasalkar
Designation :	Director
Address :	689/7, Bibweewadi Road, Opposite Aniket Society, Pune - 411037 Maharashtra, India
Date of Birth/Age :	01.06.1952
Date of Appointment :	02.07.2003
DIN No.:	02541213

KEY EXECUTIVES

Name :	Ms. Tejaswini
Designation :	Account Executive
Name :	Pawan G. Chandak and Associates
Designation :	Company Secretaries
Address :	Office no. 203, Mangalmurti Complex, 990 Shukrawar Peth, Next to Pandit Automotive, Tilak Road, Pune- 411002, Maharashtra, India
Tel. No.:	91-20-24463486/87
Fax. No.:	91-20-24463487
E-Mail :	pawang@chandakcs.com kuldeep@chandakcs.com
Website :	www.chandakcs.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

Names of Shareholders	No. of Shares
Mohan Laxman Pasalkar	229299
Arvind Laxman Pasalkar	114649
Vaishali Mohan Pasalkar	114649
Laxman Ganpatrao Pasalkar	85987
Subhadra Laxman Pasalkar	28662
Total	573246

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Services Provider of Networking Solution, Communication, System Integration and Automation.
Terms :
Selling :	L/C and Cash
Purchasing :	L/C and Cash

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

44 (Approximately)

Bankers :

· HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel West, Mumbai - 400013, Maharashtra, India

· Punjab National Bank, Pune Branch, Maharashtra, India

· Bank of Maharashtra

· Shri Sharda Sahakari Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Punjab National Bank Vehicle Loan A/c No.99901933	1.356	0.000
Punjab National Bank Vehicle Loan A/c No.99901951	1.402	0.000
Punjab National Bank - OD A/c - 96/630	92.099	50.430
Bank of Maharashtra - OD A/c 1402	26.175	29.862
Total	121.032	80.292

Banking Relations :	--
Auditors :
Name :	B Smart and Associates Chartered Accountants
Address :	1909/2 , 1st Floor , Ram-Dhwaj Commercial Complex, 732/B, Satara Road, Above Rupee Bank, Pune – 411037, Maharashtra, India
PAN No.:	AAFFP2146R

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs.6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
573246	Equity Shares	Rs.10/- each	Rs.5.732 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		5.732	5.732	5.732
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		76.423	62.622	56.613
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		82.155	68.354	62.345
LOAN FUNDS
1] Secured Loans		121.032	80.292	62.855
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		121.032	80.292	62.855
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		203.187	148.646	125.200
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.678	3.305	2.415
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		122.822	100.310	59.772
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.720	86.770	8.134
	Sundry Debtors	293.093	129.247	196.422
	Cash & Bank Balances	0.709	0.741	6.052
	Other Current Assets	8.162	0.656	0.188
	Loans & Advances	2.983	3.576	4.263
Total Current Assets		307.667	220.990	215.059
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	111.846	93.449	87.574
	Other Current Liabilities	72.344	44.095	0.000
	Provisions	53.790	38.415	64.472
Total Current Liabilities		237.980	175.959	152.046
Net Current Assets		69.687	45.031	63.013
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		203.187	148.646	125.200

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income
	Other Income
	TOTAL	423.970	154.916	35.255
EXPENSES
	Office Expenses
	Administrative Expenses
	Advertising Expenses
	TOTAL	393.385	136.842	NA
PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		30.585	18.074	43.879
FINANCIAL EXPENSES		8.029	7.322	7.322
PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		22.556	10.752	36.557
DEPRECIATION/ AMORTISATION		1.515	0.553	0.522
PROFIT BEFORE TAX		21.041	10.199	54.771
TAX		7.239	4.190	14.121
PROFIT AFTER TAX		13.802	6.009	40.650
EARNINGS IN FOREIGN CURRENCY
	Export Earnings	0.590	NA	NA
TOTAL EARNINGS		0.590	NA	NA
Earnings Per Share (Rs.)		24.08	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.26	3.88	115.30
Return on Total Assets (PBT/Total Assets}	(%)	6.61	4.55	25.19
Return on Investment (ROI) (PBT/Networth)		0.26	0.15	0.88
Debt Equity Ratio (Total Liability/Networth)		4.37	3.75	3.46
Current Ratio (Current Asset/Current Liability)		1.29	1.26	1.41

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Trade Payables	111.846	93.449	87.574
Total	111.846	93.449	87.574

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
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	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

REVIEW OF OPERATIONS:

The company has earned higher turnover as compared to that of the previous year. The turnover reported for the current year amounts to Rs.423.970 Millions as compared to previous year I.e. Rs.154.916 Millions. Also the Directors wish to inform you that there is a tremendous growth in the profitability of the company. The profit after tax earned by the company for the current year amounts to Rs.13.802 Millions as compared to previous year i.e. Rs.6.009 Millions which is a significant increase in itself.

Looking at the various opportunities available to the company and the achievements made, the Directors are hopeful that the company will report for better turn over and higher profits in the coming years.

The company is also looking forward to expand its business and enter into new contracts and agreements as and when opportunity is made available.

FIXED ASSETS

· Computers

· Computer Software

· Network Server

· Printer

· Mobile and Telephone

· Telephone PCO Monitor

· Telephone Instruments

· Plant and Machinery

· Air Conditioner

· Aqua Guard

· Drill Machine

· DVD Player

· Gas

· Generators

· Grinder

· L C Connector

· Machinery

· Marker Locator For Cable

· OTDR Machine

· Projector Machine

· Refrigerator

· Rodo Meter

· Splicing Machine

· Spiral Machine

· UPS And Batteries

· Vending Machine

· Water Filter

· Water Motor

· Furniture

· Carpet Flooring

· Office Furniture

· Chairs

· Shade Bibvewadi Office

· Office Equipment

· Camera

· Fan

· Micro Scope

· Tools and Equipments

· Telescope

· Television

· Safety First

· Vaccum Cleaner

· Sms Software

· Attendance Software

· Sms Modem

· Panaboard

· Vehicles

· Fortuner 3.0L Super White

· Skoda Superb

· Cycle

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.54.56
UK Pound	1	Rs.87.46
Euro	1	Rs.71.08

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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		32

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.