MIRA INFORM REPORT

Report Date :

05.12.2012

IDENTIFICATION DETAILS

Name :	ADINO TELECOM LIMITED
Registered Office :	C-11, Sea- Face Park, 5th Floor, 50 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.03.1992
Com. Reg. No.:	11-066132
Capital Investment / Paid-up Capital :	Rs.7.500 Millions
CIN No.: [Company Identification No.]	U84200MH1992PLC066132
TAN No.: [Tax Deduction & Collection Account No.]	MUMA07962D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Importer, Distributor Service Provider of Telecom Products
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 220000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears fall in the sales turnover and the company has the small size of operation and high working capital intensity resulting in weak cash flow position. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. 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	ICRA
Rating	LONG TERM RATING : ICRA B +
Rating Explanation	This rating are considered to have high risk of default regarding timely servicing of financial obligation
Date	June, 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 DECLINED BY

Name :	Ms. Suhani
Designation :	Accountant
Contact No.:	91-22-66044600
Date :	04.12.2012

LOCATIONS

Registered Office :

C-11, Sea- Face Park, 5th Floor, 50 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Tel. No.:

91-22-23637694

Fax No.:

Not Available

E-Mail :

sunil@adinotelecom.com

info@adinotelecom.com

corporate@adinotelecom.com

Website :

http://www.adinotelecom.com

Head Office :

B-3/4, Nandkishore Industrial Estate, Off Mahakali Caves Road, Andheri (East) Mumbai - 400 093, Maharashtra, India

Tel. No.:

91-22-66044600

Fax No.:

91-22-66044647

Branch Office :

Located at

· New Delhi

· Bangalore

· Gandhinagar

· Kolkata

· Secundrebad

DIRECTORS

As on 23.08.2012

Name :	Mr. Vijay Jaikrishin Mansukhani
Designation :	Managing director
Address :	C-11, Sea- Face Park, 5th Floor, 50 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	21.06.1949
Date of Appointment :	27.03.1992
DIN No.:	01041809
Name :	Mr. Gulu Lalchand Mirchandani
Designation :	Director
Address :	D-131, Tahnee Heights, D Block, Petit Hall, Neapeansea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	12.06.1943
Date of Appointment :	27.03.1992
DIN No.:	00026664
Name :	Mrs. Ayesha Vijay Mansukhani
Designation :	Director
Address :	C-11, Sea- Face Park, 5th Floor, 50 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	21.03.1983
Date of Appointment :	29.09.2011
DIN No.:	03360742

KEY EXECUTIVES

Name :	Ms. Suhani
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.08.2012

Names of Shareholders	No. of Shares
Vijay Jaikrishin Mansukhani	517997
Guhi Lalchand Mirchandani	199999
Gita Gulu Mirchandani	1
Marissa Vijay Mansukhani	1
Akshay V. Mansukhani	1
Ayesha V. Mansukhani	1
IIFL Wealth Management Limited (As Trustee), India	30000
Ms. Riya Malani Through her natural guardian Mr. Lalit Malani	1000
Ms. Simran Malani Through her natural guardian Mr. Lalit Malani	1000
Total	750000

Equity Share Break up (Percentage of Total Equity)

As on 23.08.2012

Category	Percentage
Bodies corporate	4.00
Directors or relatives of directors	95.73
Other top fifty shareholders	0.27
Total	100.00

BUSINESS DETAILS

Line of Business :	Importer, Distributor Service Provider of Telecom Products
Products :	· Analog Radios · Digital Transceivers · Manageable Switches · Routers · SMF Battery · UHF Radios · VHF Radios · Wireless Equipments

GENERAL INFORMATION

Suppliers :

· Autobat Accumulator Private Limited

· Axiom Energy Conversion (Private) Limited

· Eion Inc

· Frontier Trading Company

· Gayatri Dimensions,

· GenextSolutions

· Himalayan Electronics

· Riya Electronics

· Shenzhen Center Power Tech Company Limited

· S.K.Industrial Corporation

· S.Kumar Computers Private Limited-Vadodara

· SystemsCreator

· Telimart Systems

· Vsquare Networks

· Yeonwha M Tech Company Limited

· CGS Networks Private Limited

Customers :

· Micro Inks

· Patni

· Hindalco

· Toyota

· Rallis

· Bharti

· Tata Steel

· British Gas

· GNFC

· Indian Oil

· Reliance Energy

· Ranbaxy Laboratories Limited

· Air india

· NIIT

· Cadbury

· Blue Dart

· Raymond

No. of Employees :

Information declined by the management

Bankers :

Bank of India, Andherilarge Corporate Branch, M .D .I Building, 28, S.V Road, Andheri (West), Mumbai - 400058, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
(A) Cash Credit Loan
FROM BANK (SECURED)
Bank of India (Secured by hypothecation of Stock in Trade, Book Debts and further guaranteed by all Directors)	36.658	30.432
(B) CAR LOAN (SECURED)
Kotak Mahindra Prime Limited (Secured by hypothecation of Vehicle)	1.609	3.200
Total	38.267	33.632
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
(C) LOANS AND ADVANCES FROM RELATED PARTIES
Inter Corporate Deposits
Mire Electronic Limited	12.500	12.500
Loan form Director
Gulu Mirchandani	4.165	5.017
Vijay Mansukhani	33.335	20.895
Nanik Rupam	1.249	3.044
Dayal Hemrajani	1.249	3.044
Total	52.498	44.500

Banking Relations :	--
Auditors :
Name :	V. M Hemrajani and Company Chartered Accountants
Address :	1st Floor, Indian Globe Chambers, Fort Street, Mumbai – 400001, Maharashtra, India
PAN No.:	AAAPH6194E
Associates (As on 31.03.2010) :	Mirc Electronics Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		7.500	7.500	7.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		47.359	35.510	25.654
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		54.859	43.010	33.154
LOAN FUNDS
1] Secured Loans		38.267	33.632	49.344
2] Unsecured Loans		52.498	44.500	51.900
TOTAL BORROWING		90.765	78.132	101.244
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		145.624	121.142	134.398
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.735	8.166	7.514
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		8.645	11.415	11.536
DEFERREX TAX ASSETS		0.575	0.207	1.267
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.542	16.308	18.760
	Sundry Debtors	110.741	125.702	134.703
	Cash & Bank Balances	1.607	1.749	0.339
	Other Current Assets	13.553	12.007	0.000
	Loans & Advances	12.576	11.933	18.990
Total Current Assets		169.019	167.699	172.792
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.913	52.701	49.351
	Other Current Liabilities	7.812	9.332	6.378
	Provisions	6.625	4.312	2.982
Total Current Liabilities		39.350	66.345	58.711
Net Current Assets		129.669	101.354	114.081
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		145.624	121.142	134.398

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	160.862	190.332	158.783
		Other Income	1.676	0.753	3.266
		TOTAL (A)	162.538	191.085	162.049
Less	EXPENSES
		Purchase	83.404	110.232	141.313
		Changes in inventories of stock in trade	(14.234)	2.452
		Employee benefits expenses	27.279	24.691
		Operational and other expenses	33.476	26.002
		TOTAL (B)	129.925	163.377	141.313
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		32.613	27.708	20.736
Less	FINANCIAL EXPENSES (D)		13.250	11.853	10.508
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		19.363	15.855	10.228
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.082	2.124	1.508
	PROFIT BEFORE TAX (E-F) (G)		17.281	13.731	8.720
Less	TAX (H)		5.433	3.875	0.651
	PROFIT AFTER TAX (G-H) (I)		11.848	9.856	8.069
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		21.874	12.018	3.949
	BALANCE CARRIED TO THE B/S		33.722	21.874	12.018
	IMPORTS
		Trading Goods	NA	78.130	52.635
	TOTAL IMPORTS		NA	78.130	52.635
	Earnings Per Share (Rs.)		15.80	13.14	10.76

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.29	5.16	4.98
Net Profit Margin (PBT/Sales)	(%)	10.74	7.21	5.49
Return on Total Assets (PBT/Total Assets}	(%)	9.83	7.81	4.84
Return on Investment (ROI) (PBT/Networth)		0.32	0.32	0.26
Debt Equity Ratio (Total Liability/Networth)		2.37	3.36	4.82
Current Ratio (Current Asset/Current Liability)		4.30	2.53	2.94

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITOR DETAILS:

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors
For Goods	11.132	37.865	49.351
For Expenses	13.781	14.836
Total	24.913	52.701	49.351

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	No
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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
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

OPERATIONS

During the year the total revenue of the company was Rs. 162.538 Millions (Rs. 191.086 Millions of previous year) thus, decreased by approximately 14.94% as compared with previous year. The annual sales of the company was Rs. 160.862 Millions as compared to the previous year of Rs. 190.332 Millions showing decreased of 15.48% in the sales figure. The net profit after tax for the current year was Rs. 11.848 Millions as compared to the net profit after tax for the previous year of Rs. 9.856 Millions.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U84200MH1992PLC066132
Name of the company	ADINO TELECOM LIMITED
Address of the registered office or of the principal place of business in India of the company	C-11, Sea- Face Park, 5th Floor, 50 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India E-mail Id : adino@vsnl.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90348953
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Bank of India, Andherilarge Corporate Branch, M .D .I Building, 28, S.V Road, Andheri (West), Mumbai - 400058, Maharashtra, India E-mail Id : arun.govil@gmail.com
Nature of instrument creating charge	Supplemental Deed of Hypothecation
Date of instrument Creating the charge	23.08.2010
Amount secured by the charge	Rs.150.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC (Stocks and Book Debts) -Interest @6% over base rate presently @14% p.a. shall be charged at Monthly rests. L/C and BK Guarantee- As per extent guidelines Terms of Repayment Repayment On Demand Margin Stock-25% Book Debts-30% L/C-20% Bank Guarantee-15% Extent and Operation of the charge Exclusive charges by way of hypothecation of Stock and Book Debts. Others Limits decreased from Rs.155.000 Millions to Rs.150.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of all such Stocks such as Fax Machine, Spares, VHF Equipment, Accessories, Datacom Products, wireless Products etc. lying in godown, Office or Elsewhere or In Transit. Hypothecation of all the Present and Future Book Debts, Outstanding, Money Receivable, Claim, Bills, Contracts which are due and owing or which may at any time hereafter during the Continuance of the security become due or owing is the borrower in case of its business,
Date of instrument modifying the charge	19.03.2008
Particulars of the present modification	By Present Modification, Hypothecation of Stocks, Book Debts has now decreased from Rs.155.000 Millions to Rs.150.000 Millions,

FIXED ASSETS:

· Testing Equipments

· Furniture and Fixtures

· Office Equipments

· Computers

· Vehicles

· Air conditioner

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 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.54.95
UK Pound	1	Rs.88.42
Euro	1	Rs.71.71

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.