MIRA INFORM REPORT

Report Date :

05.12.2012

IDENTIFICATION DETAILS

Name :	CUBIX MICRO SYSTEMS INDIA PRIVATE LIMITED
Registered Office :	2-3, 3^rd Floor, A Wing,  Mangalmurti Complex, S. No. 1171, Sinhgad Road, Pune - 411030, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.09.1999
Com. Reg. No.:	25-13992
Capital Investment / Paid-up Capital :	Rs.25.165 Millions
CIN No.: [Company Identification No.]	U72200PN1999PTC013992
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of IT products and solutions.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 220000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as decent. Business is active. Payment terms are usually correct. The company can be considered 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.

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 DECLINED

Management Non Co-operative (91-20-24251597/98)

LOCATIONS

Registered Office / Head Office 1 :	2 - 3 , 3^rd Floor, A Wing,  Mangalmurti Complex, S. No. 1171, Sinhgad Road, Pune-411030, Maharashtra, India
Tel. No.:	91-20-24251594 (6 Lines)
Fax No.:	91-20-24251591
E-Mail :	vijay@cubixindia.com sales@cubixindia.com manisha.patwardhan@cubixindia.com apdhavalikar@vsnl.com
Website :	www.cubixindia.com
Area :	1200 Sq. ft
Location :	Owned
Head Office 2 :	5^th Floor, Senate, S. No. 118A, Jaidev Nagar, Sinhagad Road, Parvati, Pune-411030, Maharashtra, India
Branch office:	Located At: · Pune · Mumbai · Hyderabad · Chennai · Kolkata · Ahmedabad · Bangalore · New Delhi · Cochin

DIRECTORS

As on 16.08.2011

Name :	Mr. Vijay Sakharam Joshi
Designation :	Director
Address :	3, Vishwa Laxmi Co-operative Housing Society, Mayur Colony, Kothrud, Pune – 411 029, Maharashtra, India
Date of Birth/Age :	13.09.1964
Date of Appointment :	17.09.1999
DIN No.:	01441955
Name :	Mr. Nitin Anand Naik
Designation :	Director
Address :	Pinnac Memories, G – 707, S .No..3+4, Pune – 411 029, Maharashtra, India
Date of Birth/Age :	07.05.1966
Date of Appointment :	17.09.1999
DIN No.:	01801352

KEY EXECUTIVES

Name :	Adwait Walunjkar and Associates
Designation :	Company Secretaries
Address :	V-002, Wonder Futura, Near Chandani Chowk, Mumbai-Bangalore Highway, Kothrud, Pune - 411038, Maharashtra, India
Mobile No.:	91-9850982559 / 8600613598
E-Mail :	adwait@adwaitwalunjkar.com csadwait@gmail.com
Website :	www.adwaitwalunjkar.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.08.2011

Names of Shareholders (Equity Shares)	No. of Shares
Vijay Sakharam Joshi	10
Nitin Anand Naik	10
Sarita Vijay Joshi	490
Shilpa Nitin Naik	490
Vijay Sakharam Joshi	49000
Nitin Anand Naik	49000
Total	99000

Names of Shareholders (Preferences Shares)	No. of Shares
Nitin Anand Naik	77330
Vijay Sakharam Joshi	75320
Total	152650

As on 16.08.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of IT products and solutions.
Products :	· KVM Switch and Solutions · Network Traffic Management · Bandwidth Optimization · Internet and Gateway Security · Intrusion Prevention Systems

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Cosmos Co-Operative Bank Limited, 269/270, Shaniwar Peth, Pune – 411 030, Maharashtra, India

• Axis Bank Limited
• Bank of Maharashtra

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loan – Motor Vehicles (Hypothecation and personal security of directors)	6.686	0.000
Term Loan – office Premises Senate (Mortgage, Hypothecation security of directors)	0.000	2.286
Term Loan – Furniture Senate (Hypothecation and security of directors)	2.116	2.773
Cash Credit – Cosmos Co-operative Bank Limited	11.878	14.899
Term Loan – Motor Vehicles (Hypothecation and personal security of directors)	1.209	0.000
Term Loan Office Equipment – Senate (Hypothecation and personal security of directors)	2.285	3.261
Term Loan Office Equipment – Senate (Secured by Equipments)	0.343	0.340
TD-CD with Cosmos Co-operative Bank	1.006	0.000
Term Loan – Furniture Senate (Hypothecation and security of directors)	0.656	0.661
Total	26.179	24.220
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Deposit From Debtors Ace Engineers	0.000	0.120
Unsecured Loans From Directors	9.913	7.744
Total	9.913	7.864

Banking Relations :	--
Auditors :
Name :	S.V. Mujumdar and Company Chartered Accountants
Address :	B-301, Kamal Village, Katraj Kondhwa Road, Gokul Nagar, Pune – 411048, Maharashtra, India
E-Mail :	mujumdar_siddarth@yahoo.co.in
PAN.:	AQLPM7714J

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions
160000	Preferences Shares	Rs.100/- each	Rs.16.000 Millions
	Total		Rs.26.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
99000	Equity Shares	Rs.100/- each	Rs.9.900 Millions
152650	Preferences Shares	Rs.100/- each	Rs.15.265 Millions
	Total		Rs.25.165 Millions

Disclosure pursuant to Note no. 6(A) (g) of Part I of Schedule VI to the Companies Act. 1956 (if more than 5%)

Name of Shareholder	No of Shares hold	% of holding
Vijay Sakharam Joshi	49,010	49.01%
Nitin Anand Naik	49,010	49.01%
Total	98,020	98.02%

Disclosure pursuant to Note no. 6(A) (g) of Part I of Schedule VI to the Companies Act. 1956 (if more than 5%)

Name of Shareholder	No of Shares hold	% of holding
Vijay Sakharam Joshi	77,330	50.66%
Nitin Anand Naik	75,320	49.34%
Total	152,650	100.00%

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		25.165	25.165	25.165
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		30.266	25.607	21.303
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		55.431	50.772	46.468
LOAN FUNDS
1] Secured Loans		26.179	24.220	34.625
2] Unsecured Loans		9.913	7.864	11.696
TOTAL BORROWING		36.092	32.084	46.321
DEFERRED TAX LIABILITIES		0.000	0.000	0.011
TOTAL		91.523	82.856	92.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		46.902	41.949	39.308
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.206
DEFERREX TAX ASSETS		0.034	0.225	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.131	12.495	14.354
	Sundry Debtors	57.563	67.380	53.965
	Cash & Bank Balances	11.862	19.972	2.677
	Other Current Assets	8.833	3.753	0.000
	Other Non-Current Assets	1.735	1.546	0.000
	Loans & Advances	0.000	0.000	27.313
Total Current Assets		100.124	105.146	98.309
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	41.247	45.017	35.414
	Other Current Liabilities	13.859	19.199	2.910
	Provisions	0.431	0.248	6.699
Total Current Liabilities		55.537	64.464	45.023
Net Current Assets		44.587	40.682	53.286
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		91.523	82.856	92.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	253.070	281.950	264.893
		Other Income
		TOTAL	253.070	271.950	264.893
Less	EXPENSES
		Office Expenses
		Administrative Expenses		258.777	245.402
		Advertising Expenses
		TOTAL	244.296	258.777	245.402
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(Including Depreciation Expenses)	13.173	19.491
Less/ Add	DEPRECIATION/ AMORTISATION			6.206	3.808
	PROFIT BEFORE TAX		8.774	6.967	15.683
Less	TAX		4.155	2.663	6.587
	PROFIT AFTER TAX		4.659	4.304	9.096
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		25.607	21.303	12.207
	BALANCE CARRIED TO THE B/S		30.266	25.607	21.303
	EARNINGS IN FOREIGN CURRENCY		12.123	14.935	18.353
	VALUE OF IMPORTS		105.040	92.944	102.383
	Earnings Per Share (Rs.)		18.51	17.10	91.88

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.84	1.58	3.43
Return on Total Assets (PBT/Total Assets}	(%)	5.97	4.74	11.40
Return on Investment (ROI) (PBT/Networth)		0.16	0.14	0.34
Debt Equity Ratio (Total Liability/Networth)		1.65	1.91	1.97
Current Ratio (Current Asset/Current Liability)		1.80	1.63	2.18

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

(Rs. in millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors
Sundry Creditors for Expenses			7.321
Sundry Creditors for Purchases	41.247	45.017	25.920
Sundry Creditors for Outstanding Purchases			2.173
Total	41.247	45.017	35.414

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	Yes
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	No
10]	Designation of contact person	No
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	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	No

Note:

The registered office of the company has been shifted from 26/6 Vitthal Wadihingne Khurd, Pune-411051, Maharashtra, India to the present address w.e.f. 26.12.2007

REVIEW OF BUSINESS OPERATIONS:

The Total income of the company was Rs. 253.070 Millions as against Rs. 271.950 Millions in the previous year and the profit after tax was Rs: 4.659 Millions as against Rs4.304 Millions in the previous year. The Directors of the company are ensuring that the resources of the company are utilized efficiently so as to maximize profits of the company and to increase shareholders value. The Board of Directors are confident that the company, in the coming financial year will be able to increase its profits by undertaking appropriate cost reduction measures,

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U72200PN1999PTC013992
Name of the company	CUBIX MICRO SYSTEMS INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2- 3, 3^rd Floor, A Wing,  Mangalmurti Complex, S. No. 1171, Sinhgad Road, Pune-411030, Maharashtra, India vijay@cubixindia.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10106460
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Cosmos Co-Operative Bank Limited, 269/270, Shaniwar Peth, Pune – 411 030, Maharashtra, India info@cosmosbank.in
Nature of instrument creating charge	1. Loan agreement 2. Deed of hypothecation of stock, book debts and machinery 3. Composite deed of mortgage and hypothecation for creation of further charge.
Date of instrument Creating the charge	03.05.2012
Amount secured by the charge	Rs.32.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 13.50% per annum Terms of Repayment Repayable on demand. Review within 12 months Margin 25% In Banks Favour Extent and Operation of the charge Continue till full repayment of cash credit. Review within 12 months.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Office No 1 To 4, 3^rd Floor, A Wing, Mangalmurti Complex, S No 117/A/2, Fp No 538B, Sinhgad Road, Pune 411030 Office No 201, A Wing, 2^nd Floor, Canara Business Centre, Andheri Link Road, Ghatkoper (East), Mumbai 400075. Stock Including Raw or Manufactured or In Process of Manufacture at Premises or at Godowns at Pune or In Course of Transit. Present and Future Book Debts, Receivables, Claims, Bills. Movable Machinery, Plant And Equipment with Accessories and Spare Parts Situated at Pune
Date of instrument modifying the charge	01.02.2012
Particulars of the present modification	Grant of additional cash credit facility of Rs. 12.000 Millions and expiration of earlier adhoc cash credit facility of Rs. 4.000 Millions granted for 90 days thereby making the total cash credit facility limit of Rs. 32.000 Millions.

Fixed Assets:

• Air Conditioner
• Computer
• Computer Application Software
• Computer Software
• Electrical Installation
• Fax Machine
• Furniture and Fixtures
• Mobile
• Office Premises
• Office Equipment
• 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 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 :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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		44

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.