MIRA INFORM REPORT

Report Date :

05.12.2012

IDENTIFICATION DETAILS

Name :	AVNET TECHNOLOGY SOLUTIONS (INDIA) PRIVATE LIMITED (w.e.f.18.05.2009)
Formerly Known As :	ONTRACK SOLUTIONS PRIVATE LIMITED
Registered Office :	A-301, 3^rd Floor, Supreme Business Park, Behind, Lake Castle, Hiranandani Garden, Powai, Mumbai- 400076, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.06.1995
Com. Reg. No.:	11-089798
Capital Investment / Paid-up Capital :	Rs. 2.508 Millions
CIN No.: [Company Identification No.]	U72200MH1995PTC089798
TAN No.: [Tax Deduction & Collection Account No.]	MUMO01083F
PAN No.: [Permanent Account No.]	AAACD3686M
Legal Form :	Private Limited Liability Company
Line of Business :	Distributors of electronic components, enterprise computer and storage products and embedded subsystems.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

RATING		STATUS	PROPOSED CREDIT LINE
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

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 appear huge accumulated losses recorded by the company. The financial position of the company appears to be vulnerable. However, trade relations are reported as fair. Business is active. Payment terms are unknown in absence of latest financials. The company can be considered for business dealings on a safe and secured 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.

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

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 DENIED BY

Name :	Mr. Ramesh Mahadevan
Designation :	Manager Credit Control
Date :	04.12.2012

LOCATIONS

Registered Office/ Head Office :	A-301, 3^rd Floor, Supreme Business Park, Behind, Lake Castle, Hiranandani Garden, Powai, Mumbai- 400076, Maharashtra, India
Tel. No.:	91-22-44200300
Fax No.:	91-22-44200301
E-Mail :	pallavi.shah@avnet.com
Website:	www.ats.avnet.co.in
Sales Office :	B-302 Delphi, Orchard Avenue, Hiranandani Business Park, Powai, Mumbai-400076, Maharashtra, India.
Tel. No.:	91-22-44200300
Fax No.:	91-22-44200301
E-Mail :	avnet.tsindia@avnet.com
Branch Office :	Located At: Ahmadabad Bangalore Chennai Hyderabad Kolkata New Delhi Pune Chandigarh Kochi Bhubaneshwar Nashik Surat

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Naresh Ambelal Desai
Designation :	Director
Address :	204, Prime Rose A, Lokhandwala Complex, Versova, Andheri (W), Mumbai-400053, Maharashtra, India.
Date of Birth/Age :	27.03.1962
Date of Appointment :	21.06.1995
DIN No.:	00085255
Name :	Mr. Raymond John Sadowski
Designation :	Director
Address :	13120 E, Appaloosa Pl, Scottsdale, Az, United States of America, Pin Code 85259
Date of Birth/Age :	24.04.1954
Date of Appointment :	05.05.2009
DIN No.:	02631470
Name :	Jun Li
Designation :	Director
Address :	2934, East Brichwood, Chandler, AZ, United State of America, 85249
Date of Birth/Age :	21.08.1965
Date of Appointment :	29.09.2010
DIN No.:	03128048

KEY EXECUTIVES

Name :	Mr. Ramesh Mahadevan
Designation :	Manager Credit Control

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Avnet India Private Limited, India	250749
Naresh Ambelal Desai	1
Total	250750

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Distributors of electronic components, enterprise computer and storage products and embedded subsystems.

GENERAL INFORMATION

Suppliers :

· IBM

· STG

· Software

· HP

· Sybase

· Juniper

· Citrix

· Double Take

· Vision

· VMware

· F5

No. of Employees :

Information denied by management

Bankers :

· HDFC Bank Limited

HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India.

· The Hongkong and Shanghai Banking Branch Corporation

Network Service Centre, Sudam Kalu Ahire Marg ; Woerli, Mumbai - 400025, Maharashtra, India

Facilities :

(Rs. In Millions)

Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Working Capital Loans Banks Unsecured	(A)765.000	300.000
Other Debt Unsecured	(B)226.094	(C)218.594
Interest Accrued Due Other Debt Unsecured	45.335	19.985
Total	1036.429	538.579

(A) Amount repayable within one year including interest Rs.766.665 Millions (previous year Rs. 301.117 Millions)

(B) Tenure and repayment terms have not been specified

(C) Tenure and repayment terms have not been specified

Banking Relations :	--
Auditors :
Name :	Walker, Chandiok and Company Chartered Accountants
Address :	Maruthi Info-Tech Centre, 11-12/1 Inner Ring Road, Koramangaia, Bangalore-560071, Karnataka, India
Tel. No.:	91-80-39806000
Fax No.:	91-80-39806999
Income-tax PAN of auditor or auditor's firm :	AAAFW4298E
Ultimate Holding Company:	Avnet Inc.
Holding Company :	Avnet India Private Limited
Fellow Subsidiary Company :	· Avnet Asia Pte Limited · Avnet Technology Hong Kong Limited
Related Parties :	· Integrity Services and Consultancy Private Limited · Avnet Holdings LLC

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250750	Equity Shares	Rs.10/- each	Rs.2.507 Million

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		2.507	2.507	2.507
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.880	7.483	17.964
4] (Accumulated Losses)		(91.573)	0.000	0.000
NETWORTH		(88.186)	9.990	20.471
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		1036.429	538.579	79.540
TOTAL BORROWING		1036.429	538.579	79.540
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		948.243	548.569	100.011
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.161	16.109	9.273
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.010	0.052
DEFERREX TAX ASSETS		9.389	8.249	0.337
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	371.537	35.524	7.071
	Sundry Debtors	1238.276	691.687	43.235
	Cash & Bank Balances	19.801	53.977	33.771
	Other Current Assets	0.000	0.000	0.240
	Loans & Advances	139.044	94.182	35.759
Total Current Assets		1768.658	875.370	120.076
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	443.247	103.132	18.227
	Other Current Liabilities	405.244	241.396	7.962
	Provisions	4.474	6.641	3.538
Total Current Liabilities		852.965	351.169	29.727
Net Current Assets		915.693	524.201	90.349
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		948.243	548.569	100.011

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2011	31.03.2010	31.03.2009
	SALES
			Income	2915.138	1397.305	339.752
			Other Income
			TOTAL	2915.138	1397.305	339.752
Less	EXPENSES
			Office Expenses	3010.609	1413.998	345.665
			Administrative Expenses
			Advertising Expenses
			TOTAL	3010.609	1413.998	345.665
	PROFIT BEFORE TAX			(95.471)	(16.693)	(5.913)
Less	TAX			NA	(6.212)	(0.185)
	PROFIT AFTER TAX			NA	(10.481)	(5.728)
	EARNINGS IN FOREIGN CURRENCY
		Sale of Trade Goods		NA	5.419	0.000
		Commission Earnings			0.245	1.619
		Reimbursement of expenses from group companies			0.000	0.414
	TOTAL EARNINGS			NA	5.664	2.033
	IMPORTS
		Purchase of components and Software		NA	40.289	14.967
	TOTAL IMPORTS			NA	40.289	14.967
	Earnings Per Share (Rs.)			NA	NA	(22.84)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	(0.75)	(1.69)
Return on Total Assets (PBT/Total Assets}	(%)	(5.33)	(1.87)	(4.57)
Return on Investment (ROI) (PBT/Networth)		1.08	(1.67)	(0.29)
Debt Equity Ratio (Total Liability/Networth)		(21.43)	89.06	5.34
Current Ratio (Current Asset/Current Liability)		2.07	2.49	4.04

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS:

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Creditors due small micro enterprises	0.000	0.000	0.000
Creditors due others	443.247	103.132	18.227
Total	443.247	103.132	18.227

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	Yes
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	No
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	No

BUSINESS:

With global economy gradually regaining strength, turnover of goods traded increase manifold to Rs. 2861.390 Millions against Rs. 1369.594 Millions during the corresponding period.

Total Income and expenditure for the year ending 31st March, 2011 stood at Rs. 2915.138 Millions and Rs. 3010.609 Millions. Due to overall increase in expenditure loss of the Company was Rs. 95.471 Millions

For business turnaround, the Board of Directors have formulated strategies for implementation of its plans and policies, thereby enhancing market share and network, due to which expenditures has increased manifold thereby resulting loss..

FIXED ASSETS:

• Buildings
• Furniture and Fixtures
• Air Conditioners
• Computer Systems
• Communication Equipments
• Electrical Installation
• 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. 54.95
UK Pound	1	Rs. 88.42
Euro	1	Rs. 71.71

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		12

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.